CNG has been slow to pick up in India. Introduced in the late 1990s, it accounts for 5% of total vehicles sold. The reason was lack of a refueling network and doubts about the power and safety of natural gas-powered engines.
Srivastava said not only the performance parameters of factory-fitted CNG vehicle are the same as a petrol variant now, there is also no safety issue with such kits. Concerns about retrofitted kits no longer exist as that’s not allowed under the technical requirements under the BS-VI rollout, he said.
Estimates suggest for every one CNG vehicle rolled out of factory, two were retrofitted, according to Srivastava. “Now, buyers will will opt for company-fitted CNGs, aiding the demand for OEMs.”
India is also building on a gas distribution network. Between financial years 2017 and 2020, the number of cities with CNG stations nearly doubled to 236. The government, he said, aims to take it to 375 by 2025. The number of refuelling stations, too, has doubled and is expected to hit 2,300 by March, 4,500 a year later and 10,000 by 2025.
The government has already prioritised city-based gas distribution, including the use of CNG for transport. Contracts for 136 ‘geographical areas’ have been awarded in rounds nine and 10 of auctions and that, according to Crisil, is expected to cover about 71% of the cumulative population.
According to Ghosh, CNG is also a cheaper way of meeting CO2 goals as only distribution network needs to be strengthened as opposed to electric vehicles that require building a new type of vehicle and infrastructure. And Crisil sees CNG having seven to eight years till electric vehicles become a serious challenge.
Ghosh, however, cautioned the government has to let automakers choose their path to cut emissions, whether it’s hybrid, ethanol, CNG or electric technology. “Sudden and abrupt policy changes like setting targets for any specific technology like EV, could derail adaption or create confusion in the industry.”