Natural gas vehicles would have potential to transform Indian mobility scenario by 2030

New Delhi: Natural gas vehicles (NGVs) are likely to account for 50 per cent of sales of new three- and four-wheelers in India by 2030, on the back of rapidly developing infrastructure and cost reduction due to domestic manufacturing, according to a report. Nomura Research Institute Ltd (NRI Consulting & Solutions) in its report on ‘Transforming Mobility Through Natural Gas’ also said the implementation of BS-VI emission norms from April 1, 2020, will increase price differential between CNG and diesel vehicles, making CNG vehicles more attractive.

According to the report, a strong network of 15,000 CNG and 1,500 LNG stations by 2030 would have the potential to transform the Indian mobility scenario, with an expected 33 million natural gas vehicles as compared to 3.3 million in 2019. It said CNG infrastructure has grown rapidly in India. As many as seven states that benefited after the 10th round of CGD (city gas distribution) make up 55 per cent of the total vehicle sales in the country as of 2017-18.

“After the 9th and 10th round, CGD infrastructure will cover 52 per cent area and 72 per cent population and will make natural gas accessible across the country,” the report said. Commenting on the potential of NGVs in India, NRI Consulting & Solutions India Partner and Group Head Ashim Sharma said these vehicles can play a big role in transforming mobility in India. “As an automobile fuel, natural gas is a proven technology in terms of providing better air quality, sustainability and eco-friendliness,” he added.

A favourable policy is required for promotion of NGVs through the development of CNG infrastructure to increase customer acceptance and provide cost-competitiveness, Sharma said. The report said demand push resulting from countrywide infrastructure will incentivise original equipment manufacturers (OEMs) to launch dedicated NGV platforms leading to better economies of scale and efficient products. Localisation of NGV components such as LNG cryogenic cylinders and certain CNG powertrain components will reduce acquisition cost for customer boosting their total cost of ownership, it added.

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