CNG cars poised to capture 25% of Indian automobile market by 2030: Tata Motors' strategic move in the midst of EV revolution


Mumbai, November 06th 2023.

Tata Motors, India’s leading automobile manufacturer, has made a bold move by making CNG vehicles more desirable and practical. With its twin-cylinder technology, Tata Motors has ensured that CNG-powered vehicles are no longer a compromise. This strategic decision reflects Tata Motors' commitment to sustainability and its recognition of the burgeoning popularity of CNG vehicles in the country.

Over the last three to four years, CNG cars have gained significant traction, especially in the personal vehicle segment. Two key factors have driven this remarkable surge are diverse model offerings and expanding infrastructure. The Indian market now boasts a diverse range of CNG models, with approximately 17-18 variants available across different body types and price points, offered by various original equipment manufacturers (OEMs).There is also a notable price difference when compared to petrol prices offering a sustained lower operating cost for CNG vehicle owners. The proliferation of CNG refueling stations across the nation has been a game-changer. Three years ago, there were around 1,500 stations; today, that number has surged to approximately 5,500. Notably, states such as Haryana, Delhi, Gujarat, and Maharashtra have embraced CNG vehicles, leading to deep market penetration in these regions. .

These two factors have contributed to the impressive growth of the CNG segment, boasting a Compound Annual Growth Rate (CAGR) of 35% over three years and a YoY growth rate of 52%. In the previous year alone, the market witnessed the sale of 4 lakh CNG cars, with Tata Motors contributing approximately 50,000 units.

Tata Motors has adopted a multi-powertrain strategy, addressing stringent emission requirements and CAFÉ norms. The company has already introduced CNG options for its Tigor and Tiago models, which collectively constitute nearly 40% of sales in their respective families. The introduction of the Altroz iCNG fills a void in the premium hatchback segment. This offering stands as a testament to Tata Motors' commitment to uncompromised quality, featuring twin-cylinder technology for enhanced boot space and aspirational features like a sunroof and wireless charger.

While CNG penetration currently stands at 15% in the Indian automotive industry, industry experts anticipate a shift towards 20-25% by the end of the decade, driven by its eco-friendly nature. All OEMs are under pressure to meet CAFÉ norms, further bolstering the adoption of CNG.

Tata Motors' multi-powertrain strategy, the availability of diverse CNG models, and the expanding network of CNG filling stations have all contributed to the surge in the CNG segment. Presently, approximately 52,000 CNG vehicles are sold monthly, with private car buyers constituting a significant portion of these sales.

Tata Motors remains steadfast in its commitment to providing innovative, eco-friendly, and aspirational vehicles to cater to the evolving needs of Indian consumers.