India Automotive CNG/LPG Kit Market Size, By Kit Type (CNG, LPG), By Vehicle Type (Passenger Car, Light Commercial Vehicle, Medium Commercial Vehicle, Others), and, By Region (Northern India, Southern India, Eastern India, Western India); Trend Analysis, Competitive Market Share & Forecast, 2016-26

Published:
March 2020
Report Code:
BWC19420
Available Format:
PDF PDF Icon
Pages:
150

india automotive cng lpg kit market bwc19420

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India Automotive CNG/LPG Kit Market Forecast and Trends

Indian Automotive CNG & LPG kit Market has reached USD 5.15 Million units in 2019 and is projected to expand with a growth rate of 7.77%, in Volume terms, during 2020 to 2026. The market is expected to generate a revenue of USD 8.68 million units by 2026. With a large number of Indian cities embarking for cleaner fuel, CNG is gaining momentum in the Indian automotive market.

The use of CNG/LPG kit in the transportation sector is primarily driven by the environmental and public health imperatives. CNG & LPG gas supply and infrastructure costs are generally lower than other alternative non-blended fuels. The cost of bulk CNG & LPG supplied to the service stations is generally lower on an energy-content basis than for gasoline. Rising demand for CNG & LPG gas is not predictable to raise significantly the cost of LPG on the international spot market relative to gasoline given the abundance of supplies. When petrol and diesel costs `72 per litre, and `60 per litre while CNG costs only `45 per kilogram*, it is obvious that vehicle will consider getting a CNG kit and leads to drive market across Indian market.

India Automotive CNG/LPG Kit Market Overview:

CNG is compressed natural gas, mainly compressed by methane at a pressure of 200 to 248 bar. LPG is liquefied petroleum gas, a 15 ° C mixture of liquefied propane with butane, and a 1.7-7.5 bar pressure. Many types of LPG are mainly propane so in colloquial terms, LPG is often referred to as propane. CNG is cheaper and cleaner but LPG is higher in calorific value. While CNG produces greenhouse gases when combusted, it is a safer alternative to other fossil fuels, such as gasoline or LPG. A common addition to both LPG and CNG is ethanethiol or ethyl mercaptan. Mercaptan has a foul, rotten-egg smell that facilitates the detection of gas leaks in case of a spill due to the natural gas, CNG is also safer than other fuels, being lighter than air, disperses rapidly when released. Given that LPG generates more energy than CNG, natural gas can not simply be substituted. Only gases which have the same Wobbe index is interchangeable. For LPG to have the same Wobbe index as CNG, it is mixed with the air. A ratio of 60:40 for LPG: air mixing is common but it depends on the LPG composition because LPG itself is a mixture of propane and butane. This blend of LPG and air to replace natural gas is known as synthetic natural gas (SNG). Use of SNG is common before the CNG distribution network is fully operational.

Growth drivers

The rising number of passenger cars across India

The Indian automotive industry has experienced steady growth in demand for and sales of passenger cars due to improved economic conditions and increased disposable income for consumers. The country has seen a gradual shift towards easy/comfortable transport, from affordable transportation to luxurious and safe transport. With the increasing presence of international car manufacturers and brands in the country and the willingness of consumers to purchase and maintain new cars, consumers have been willing to buy more than one passenger car to meet their different daily needs and travel needs. With around 29 million passenger cars, light commercial vehicles, and medium and heavy commercial vehicles produced, India and China are the top demand generators for CNG & LPG automotive kits.

Low cost of CNG/LPG gas

CNG & LPG gas supply and infrastructure costs are generally lower than other alternative non-blended fuels. The cost of bulk CNG & LPG delivered to service stations is usually more economical in terms of energy content than for gasoline. Rising demand for CNG & LPG gas is not predictable, given the abundance of supplies, to significantly increase the cost of LPG on the international spot market compared to gasoline.

Restraints

Electric-vehicle inclination in the region

Many cities are projected to replace their current fuel-based bus fleet with electric busses. The growing trend of replacing the public transport fleet based on fossil fuels with electric busses would boost the growth of electric commercial vehicles during the forecast period of 2020-2026 and will impede the demand for CNG & LPG Indian kits. The Government of India has announced its National Electric Mobility Mission Project (NEMMP) to support the local manufacturing capabilities of automakers. With this roadmap, the Government of India plans to make electric vehicles economically viable and self-sustaining by 2020. There is a wide range of policies implemented by the government to support the implementation of EVs and infrastructure.

India Automotive CNG/LPG Kit Market: Kit type

Based on Kit type, Automotive CNG/LPG Kit market segmented into CNG, LPG. CNG kit sector expected to grow with a rapid race, CNG autos have the majority share in the total number of CNG-run vehicles. Buses, cars, and light commercial vehicles are also increasingly using this CNG fuel and indirectly contribute to drive demand of CNG kit in Indian automotive CNG/LPG kit market. CNG kit market is projected to expand with a growth at a significant rate during the forecast period from 2020 to 2026. LPG facing handling challenge in Indian market in terms of long storage and tank size, which is expected to hamper growth rate of LPG kits in Indian automotive CNG/LPG kit Market during the forecast period of 2020-2026.


India Automotive CNG/LPG Kit Market: Vehicle type

Based on vehicle type, the Automotive CNG/LPG Kit market segmented into Passenger Car, Light Commercial Vehicle, Medium Commercial Vehicle, Others. The Passenger car segment is estimated to dominating the product segment in the Automotive CNG/LPG Kit market during the forecast period of 2026. Passenger vehicle segment expected to boost the India automobile CNG/LPG kit market, with the rise of passenger vehicle sales owing to improvement in economic condition and growth in the consumers' disposable incomes. In addition to the driver's seat, passenger cars are motor vehicles with at least four wheels, which are used for passenger transport and have no more than eight seats. With the growing presence in the country of international automotive manufacturers and brands, and consumers are willing to buy new vehicles to become the main growth factor.

India Automotive CNG/LPG Kit Market: Regional insights

Based on the region, the Automotive CNG/LPG Kit market is segmented into Northern India, Southern India, Eastern India, Western India. Northern India is projected to dominated the Automotive CNG/LPG Kit market. The growing awareness about air pollution leads to increased global adoption of Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG) or AutoGas as substitutes for traditional vehicle fuel in passenger cars, commercial vehicles, 3-wheelers, etc. Commonly, CNG is cheaper than LPG. Propane produces more than twice as much energy as natural gas. In the case of a spill, CNG is also safer than other fuels because natural gas, being lighter than air, quickly disperses when released.


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.

Recent Development:

In February 2020, BS6 compliant Maruti Suzuki WagonR now also available in S-CNG. Introduction of WagonR with BS6 compliant CNG is aligned to the Company’s Mission Green Million, announced at the Auto Expo-2020.

In June 2018, Maruti Suzuki Ertiga S-CNG is country’s first BS6 compliant CNG MPV offering a mileage of 26.08 km/kg.

The objective of the Study:

To analyze and forecast the India Automotive CNG/LPG Kit market size of the market, in terms of value.

To examine the careful market segmentation and forecast the market size, in terms value, based on the region by segmenting the India Automotive CNG/LPG Kit market into five regions, namely, Northern India, Southern India, Eastern India, Western India.

To outline, categorized and forecast the India Automotive CNG/LPG Kit market based on the kit type, vehicle type, and region.

To examine competitive developments like technological advancement, services, and regulative framework within the India Automotive CNG/LPG Kit Market.

To highlight the impact analysis of the factors, affecting the market dynamics such as drivers, restraints, opportunities, and challenges.

To strategically profile the key players and comprehensively analyze their market shares along with detailing the competitive landscape for market leaders.

Scope of the Report

Attribute

Details

Years Considered

Historical data – 2016-2019

Base Year – 2019

Forecast – 2020 – 2026

Facts Covered

Revenue in USD Million/Billion

Market Coverage

Northern India, Southern India, Eastern India, Western India

Product/Service Segmentation

By Kit type, Vehicle Type and Region

Key Players

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

By Kit Type

·         CNG

·         LPG

By Vehicle Type

·         Passenger Car

·         Light Commercial Vehicle

·         Medium Commercial Vehicle

·         Others

By Region

·         Northern India

·         Southern India

·         Eastern India

·         Western India


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