Tata Motors to double CNG variants as demand pent up

27 Jun 2023 , 02:08 PM

Tata Motors, the country’s largest automotive group by revenue, plans to double the share of CNG vehicles in its overall sales in FY24, owing to strong customer demand for the fuel option following the Centre’s rationalization of natural gas prices.

The company, having recently introduced the CNG version of the compact car Altroz, mentioned that the demand for CNG vehicles has been fueled by the introduction of new models in this category. Additionally, the sustained price difference between CNG and petrol fuels, along with the improved accessibility of CNG refueling stations, has been contributing to the growing demand.

Shailesh Chandra, the Managing Director of Tata Motors, expressed that with the inclusion of a new model in their product lineup, the company anticipates that CNG vehicles will contribute to approximately 10-12% of their sales in the current fiscal year. This marks an increase from the 6% share observed in the previous fiscal year, FY23.

Chandra stated that despite the increase in gas prices, the sales of Compressed Natural Gas (CNG) vehicles witnessed a significant surge of 50% during the previous fiscal year. Concurrently, overall car sales also experienced a growth of 27% within the same period. 

The notable price difference between CNG and petrol fuels, coupled with the introduction of various new CNG models in the market, is encouraging customers to consider long-term benefits and choose CNG variants for their vehicles.

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