Breathe Easy, India: How CNG is Combating Air Pollution

 

The Rise of Compressed Natural Gas (CNG): India's Next Game-Changing Fuel

Introduction

The Indian government has recognized the importance of alternative fuels, particularly CNG, as a means to reduce dependence on foreign oil, combat pollution, and address climate change.

CNG: A Sustainable and Affordable Fuel

Compressed natural gas (CNG) is a clean-burning fuel derived from underground gas reserves. Compared to petrol and diesel, it emits significantly lower levels of pollutants and greenhouse gases. Moreover, CNG provides comparable or even better mileage, making it a more economical transportation option.

The Role of Government and Industry

The Indian government has played a pivotal role in promoting the adoption of CNG. The Supreme Court's 1998 order mandating CNG for autos and buses in Delhi sparked the CNG revolution in the country.

Bajaj Auto has emerged as a market leader in CNG vehicles. Leveraging its early adoption of CNG technology, the company captured a dominant market share in CNG three-wheelers and later expanded into CNG four-wheelers.

Growth of CNG Market

The CNG market in India has witnessed a significant surge in recent years. The share of CNG-powered vehicles in passenger vehicle sales has grown from 3.5% in 2019 to 11% in 2022. The market is projected to reach 18% growth in the next five years.

New Opportunities in the CNG Sector

Retrofit Services: Installing CNG cylinders in existing petrol cars provides a cost-effective alternative to purchasing new CNG vehicles. This has created a growing market for retrofitting services.

CNG Fueling Stations: The lack of adequate CNG infrastructure remains a constraint. The government has set an aggressive target of increasing the number of CNG stations to 17,700 by 2030, presenting opportunities for CNG dealership and land leasing.

First-of-its-Kind CNG Motorcycle: Bajaj Auto's upcoming CNG motorcycle promises to disrupt the two-wheeler market with its low emissions, cost-effectiveness, and better mileage. Government support is expected to further facilitate the adoption of CNG motorcycles.

Conclusion

The CNG revolution in India is creating a multitude of investment and business opportunities. With government incentives, industry innovation, and growing consumer demand, CNG is poised to play a major role in India's clean energy future.