Even as demand for CNG(compressed natural gas) E in India, the CNG retrofitting business is taking a hit. Having issued a draft proposal vide a notification on January 27, 2022 to allow fitment of CNG and LPG kits in BS VI vehicles which are less than 3.5 tonnes in gross vehicle weight (GVW), the final approval and go-ahead from the Ministry of Road Transportation and Highways (MORTH) is still pending. This is adversely impacting the aftermarket CNG retrofit business.
On April 1, 2020, the stringent BS VI emission norms came into force but more than two years later after the technological upgrade, there is still no approval for vehicles complying with these emission regulations to be fitted with the greener CNG fuel option in the aftermarket.
OEMs benefit, aftermarket holds its breath
At present, BS VI cars see CNG installation only at the factory level, of which OEMs like Maruti Suzuki India, Hyundai Motor India and more recently Tata Motors, are the only players offering petrol-CNG bi-fuel options in their select models. With demand for this more economical and efficient fuel option only growing, attributed to the sharp rise in prices of petrol and diesel in the past couple of years, it is only OEMs which have made all the gains, leaving the small-scale aftermarket operators scrambling to remain profitable.
In FY2022, CNG-powered sales clocked near-55 percent YoY growth with 265,383 units, which comprises 8.64 percent of total PV sales of 3,069,499 units vs 6.30 percent in FY2021.
With an impressive 7 cars on offer with a CNG option last fiscal, India's largest carmaker - Maruti Suzuki India - commanded an 81 percent market share. It has now intensified its CNG assault with 10 cars from its portfolio being offered with the factory-fitted bi-fuel option. In fact, of its existing 387,000 units order backlog, CNG variants account for 126,000 units or 33 percent.
This story is from the 15th September 2022 edition of Autocar Professional.
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This story is from the 15th September 2022 edition of Autocar Professional.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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