Moreover, the community of CNG stations is rising, in keeping with {industry} executives and specialists.
The worth of CNG was elevated by `2 per kg within the nationwide capital on May 21, taking it to `75.61 per kg.
It was the thirteenth hike introduced by Indraprastha Gas (IGL), the corporate retailing CNG within the capital and adjoining cities, since March 7, leading to a cumulative rise of `19.60 per kg.
Shashank Srivastava, senior govt director – advertising and gross sales, Maruti Suzuki India, informed FE that though the CNG costs have elevated, the working value for CNG autos stays very aggressive in relation to these for petrol and diesel.
“It is about `2 per km against almost `5 per km for petrol and diesel and still about 30% cheaper than petrol and diesel. As long as the price gap between diesel or gasoline and CNG remains, people will prefer CNG vehicles,” Srivastava stated.
Maruti, which sells 9 CNG fashions, at the moment has 130,000 pending bookings for such autos.
The share of CNG fashions within the industry-wide PV volumes was round 8% in FY22 and 6% in FY21, whereas their contribution to the CV volumes was almost 14% in FY22 and fewer than 10% in FY21, in keeping with Crisil Research.
Tata Motors witnessed a pointy rise within the demand for CNG-powered vans in FY22, with the share of CNG fashions rising in SCV (small industrial automobile) cargo phase from roughly 7% to 29%, and in I&LCV (intermediate & mild industrial automobile) phase from lower than 20% to greater than 40%.
“The shift in the fuel mix was on account of increasing differential between CNG and diesel fuel prices, driving the operating economics in favour of CNG vehicles in addition to the improving availability of CNG fuelling stations across the country,” a Tata Motors spokesperson stated.
The spokesperson famous that whereas the CNG worth fluctuation could have a short-term affect on the gas combine, the corporate expects the expansion in CNG salience to proceed within the mid-term.
This is as a result of rising availability of CNG stations, rising merchandise with CNG powertrain, whole value of possession (TCO) benefit over diesel and the restriction on the entry of diesel autos in sure cities.
Sanjeev Kumar, head – MHCV, Ashok Leyland, stated that the value differential between diesel and CNG is essential to the working economics of our clients.
“We estimate that as long as the differential is more than `20, CNG will continue to be preferred by truck owners from a purely economics point of view, especially in states around Delhi-NCR as they need to pay NGT tax of `1,500 every time they enter Delhi,” Kumar stated.
However, he added that with decrease differential clients could shift to diesel, particularly in northern and western markets.
The Union authorities reduce excise responsibility on petrol by `8 per litre to `19.1 per litre and that on diesel by `6 per litre to `15.8 per litre on May 21. While petrol now prices `96.72 per litre within the nationwide capital, diesel prices `89.62 per litre.
“CNG distribution network is well established in the north as well as west. However, it is getting established in the south and east and these markets will grow in terms of CNG volumes especially for trucks. Intra-city buses will continue to be on CNG,” Kumar stated.
Pushan Sharma, director, Crisil Research, stated the rising CNG costs won’t affect PV and CV volumes to a big extent as petrol and diesel costs too are on the upper facet, sustaining working value viability for CNG fashions by `1-2 per km in contrast with diesel.
Source: www.financialexpress.com”