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India’s Automakers Shifting Focus from LPG to CNG Vehicles

May 24, 2009

India, Mumbai

Maruti Suzuki India (MSIL) is shifting its development focus from LPG-powered cars to compressed natural gas (CNG) vehicles, says I V Rao, Managing Executive Officer (Engineering), according to India’s Economic Times (ET). “We are developing engines that would run on CNG. By early 2010, we will introduce CNG-driven cars in each of the segments we operate.” Mahinda and Mahindra are reportedly following suit — an official said the company is ready to launch CNG-driven small commercial vehicles, but was looking to an expanded infrastructure and supporting legislation to improve commercial opportunity. The moves are seen to be a response to India’s increasing natural gas supply, with RIL starting to pump out gas from its KG basin last month, and predictions that supply will penetrate to tier II and tier III cities. To begin with, it is expected that the CNG-run vehicles will occupy 5% of the total auto market in the country.

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