Rising gasoline prices and prohibitively costly electrical automobiles are making compressed pure gasoline (CNG) “a welcome relief and alternate fuel” for mobility for Indian customers, in keeping with a report by NRI (Nomura Research Institute) Consulting & Solutions.
CNG automobile gross sales continued to develop in FY22, rising by 55 per cent to 2,65,383 items in FY22 in comparison with 1,71,288 items in FY21, as per NRI’s report titled ‘Path to clean mobility: Increasing penetration of NGVs in India’.
In the final 5 years, the penetration of CNG automobiles has additionally elevated, and its parc has grown at a CAGR of 5.3 per cent to 37.97 lakh items as of March 2022 from 30.90 lakh items in March 2018, the report stated.
“With increased differential TCO (total cost of ownership) benefits compared to other fuels, CNG is gaining more prominence among consumer preference post-BS-VI. The technology is now well established in India with major OEMs concentrating to bring in a range of cost-efficient and fuel-efficient CNG variants,” NRI stated in a press release.
The report identified that beneficial components, corresponding to enchancment in CNG fuelling infrastructure and supporting regulatory atmosphere, are serving to the expansion of CNG automobiles.
“With fuel prices soaring and electric vehicles becoming prohibitively expensive for most Indians, vehicles that run on compressed natural gas could be considered as a welcome relief and an alternative for mobility,” NRI stated.
The growth of the CGD (metropolis gasoline distribution) community and an growing variety of CNG stations is predicted to encourage the proliferation of NGVs (pure gasoline automobiles), it added.
“The immense volume and favourable conditions of the Indian automobile market give an opportunity to promote widespread adoption of NGVs in India,” NRI Consulting & Solutions Senior Partner & Group Head Ashim Sharma stated.
However, he identified that “higher gas prices will exacerbate the CGD industries’ already unfavourable economics, limiting network expansion and negatively impacting consumer experience. The government, industry and CGD companies must all work together for India’s NGV market to thrive in the future”.
According to the report, bio-CNG offers an efficient resolution to environmental points like stubble burning. However, the uncertainty of biomass availability poses a problem.Yet, India’s bio-CNG technology potential, as soon as absolutely realised, can meet the present pure gasoline demand of the nation and might energy 54 lakh further automobiles, it added.
Source: www.financialexpress.com”