Indian Automotive CNG & LPG kit Market has reached USD 5.15 Million in 2019 and projected to expand with a growth rate of 7.77%, in volume terms, during the forecast period 2020 to 2026.
Factors contributing to this growth include increasing demand for more economical fuel compared to conventional fuels and rising demand for environment-friendly fuel to decrease intensifying pollution levels in cities in India. Major automakers have also started integrating liquefied petroleum gas (LPG) and CNG fuel systems into their latest models. CNG tanks need storage space, the CNG cylinder can be substantial, the tank’s added weight offset by a petrol fuel’s reduced weight. The vehicle’s output after installation of the CNG/LPG package is significantly lowered. Such factors related to the CNG/LPG package are becoming restrictive in the growth of the CNG/LPG kit sector in the Indian automotive industry.
CNG segment in India Automotive CNG/LPG Kit market estimated to have the fastest growth during the forecast period
CNG segment in automotive CNG/LPG kit market is expected to dominate during the forecast period from 2020-2026 across the region. In last four years, demand for CNG increased by 50% as a result of a combination of the Modi government’s drive to popularize less polluting fuel, increase filling stations, lower gas prices, and the launch of several CNG vehicles by car manufacturers. Key factors leading to this growth include growing demand for more economical fuel compared to conventional fuels and increasing demand for environmentally friendly fuel to minimize the increasing levels of pollution in cities in India. In addition, the cost of CNG gas, as well as other advantages, make the market more lucrative and boost demand for CNG kits in the Indian automotive market.
The increasing automobile fuel policies will propel the market growth across the region
The most effective incentive policies related to Auto-gas industry are those that help to make fuel more competitive against petrol and diesel and provide a strong financial incentive for end-users to turn to auto-gas. The growth in demand of CNG and LPG kits in the automotive industry can be attributed to increased usage of alternative fuel for cost-effectiveness, fuel efficiency and emission control. In practice, the financial superiority of Autogas over other fuels depends mostly on two factors: the net cost of converting an existing gasoline vehicle (or the added cost of buying a factory-built Autogas vehicle compared to the equivalent of Petrol or Diesel) and the price of the Auto-gas pump relative to diesel and Petrol. In short, the car owner must be compensated for increased upfront costs by decreased running costs, the most important of which is Petrol.
Increasing government initiatives fuelling the growth of market across India
Increased urbanization and a robust increase in the automotive industry have contributed to the rise in CO2 emissions across the country, especially in various major cities in India over the last decade. Vehicles with conventional fuel systems are among the leading contributors to pollution. To overcome this challenge, Indian governments are taking initiatives and offering incentives to encourage customers to move from traditional fuels to CNG and auto gas, thereby increasing demand for new CNG & LPG automotive kits.
Northern India is expected to dominate the India Automotive CNG/LPG Kit market during the anticipated period.
Geographically, the India Automotive CNG/LPG Kit market is bifurcated into Northern India, Southern India, Eastern India, Western India. Northern India dominated the Automotive CNG/LPG Kit market, due to the advent of natural gas and liquefied petroleum gas (propane and butane) as the most preferred alternative fuels instead of petrol and diesel, CNG and LPG Sequential kits are built-in private as well as commercial vehicles such as buses, taxis, etc. While CNG creates greenhouse gases after combustion, it is an alternative that is cleaner from the atmosphere than other fossil fuels like gasoline. LPG is produced during petroleum refining (crude oil) or extracted from flows of petroleum or natural gas as they emerge from the soil.
Automotive CNG/LPG Kit Market: Competitive Landscape
The major market players in the Automotive CNG/LPG Kit are Maruti Suzuki, Hyundai Motor, Mahindra & Mahindra, TATA Motors Limited, Bajaj, Piaggio, General Motors, Honda Motor Co. Ltd., Ford Motor, Toyota Motor Corporation, Ashok Leyland, and other prominent players are expanding their presence in the market by implementing various innovations and technology.