Tata sees CNG sales rising in LCV, SCV portfolio

The company's marketshare performance has been broad based across all segments as a result of a several initiatives including a wider service and sales network and value-added measures. A report by Shahkar Abidi on how the commercial vehicle maker is leveraging a strong CNG portfolio.

- Shahkar Abidi

Tata Motors has seen a notable increase in CNG sales for its intermediate, LCV and SCV vehicle portfolios in fiscal 2022 as compared to fiscal 2021, says executive director, Tata Motors, Girish Wagh.

In an e-mail interview to Autocar Professional, Wagh said the trends suggest a shift in CV buying as far as fuel mix preference goes from diesel to CNG-powered vehicle. He attributed this to a trio of factors. Firstly, the increasing diesel prices have increased the total cost of operations for fleet owners thereby impacting overall profitability compared to CNG-powered vehicles. Secondly, the initial price difference between similar diesel-powered and CNG-powered vehicles has reduced after the transition to BS6 emission norms. Lastly, CNG is now more widely available in metros, tier 2 and tier 3 cities thus taking away the range anxiety to a large extent and boosting demand. Besides the savings on operational costs, CNG vehicles have also resulted cost benefits, with exemptions on green tax/cess in numerous states and cities across the country, Wagh emphasised. With a strong portfolio of CNG vehicles in the SCV, I&LCV and the bus range, the company has been able to leverage this.