India Automotive CNG and LPG Kit Market Gaining Momentum—Projected to Reach 7.1 Million Units in 2027

Published | 08 September 2021

The growing demand for CNG and LPG and the increasing number of vehicles in India, coupled with favorable government initiatives to support cleaner fuel, are driving the India Automotive CNG/LPG Kits market...


A study recently conducted by the strategic consulting and market research firm BlueWeave Consulting, revealed that the India Automotive CNG and LPG kit market was 4.6 million units in 2020 and is likely to expand with a growth rate of 6.8%, in volume terms, from 2021 to 2027 and reach a volume of 7.1 million units in 2027. The growth of the market is attributable to the growing demand for more economical fuel than fossil fuels and the urgent need to bring down pollution levels in cities across India. Moreover, the growing demand for CNG/LPG, the increasing number of vehicles in India, and government initiatives to support cleaner fuel are the primary factors driving the growth of the India automotive CNG/LPG kit market. LPG and CNG vehicles operate at a much lower cost than petroleum vehicles. Therefore, alternative fuels like CNG and LPG make more sense when petrol is becoming more expensive due to increased demand and fewer reserves, especially for those who drive a lot.

The increasing automobile fuel policies will propel the market growth across the region

The prices of conventional automobile fuel, i.e., petrol and diesel, are surging rapidly in India. Diesel prices have already surpassed the ₹90-mark in India when petrol has already reached the ₹100-mark. Petrol and diesel prices in India have gone up despite the low cost of crude oil on the international market due to high local taxes. Excise duty and cess applied by the central government on fuel and a value-added tax (VAT) from the state governments are the main reasons for the increased petrol prices in the country. The prices of petrol and diesel have gone up by 40% and 56% respectively in the last seven years. The increased costs of petrol and diesel are driving people towards cleaner and cheaper fuel like CNG. The growing demand for CNG has led to increased demand for CNG kits in the country, thus propelling the growth of the India automotive CNG/LPG kit market.

India Automotive CNG/LPG Kit Market: By Type

The India Automotive CNG/LPG kit market is categorized into CNG and LPG based on the types. The CNG segment dominated the market in 2020 due to the increased demand for CNG and the growing number of CNG-powered vehicles. The demand for Compressed Natural Gas (CNG) has increased by 50% in the last four years due to the Modi government's drive to popularize less polluting fuel, along with fuel price reductions and several CNG vehicles launched by car manufacturers. In addition, the cost of CNG gas and other advantages make the market more lucrative, thus, boosting the demand for CNG kits in the Indian automotive market.


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Impact of COVID-19

With millions of cases spiking in India, Covid-19 took a heavy toll on India. Due to the extended lockdown and companies opting for a work-from-home model, India's automotive CNG/LPG kit market witnessed a sharp decline during the initial phase of the pandemic. A second pandemic wave hit the country in 2021, which further slowed the market's recovery. Since the cases surged exponentially, the government had to announce lockdown once again. The mass vaccination campaigns and lifting of lockdown restrictions are expected to trigger a market recovery. However, the threat of the third wave of COVID-19 in October 2021 and the emergence of the COVID-19 delta variant is expected to hurt the India Automotive CNG/LPG kit market recovery.

India Automotive CNG/LPG Kit Market: By Region

The India Automotive CNG/LPG Kit market is categorized into Northern India, Southern India, Eastern India, and Western India based on regions. Among these regions, North India was the largest market for Automotive CNG/LPG Kit in 2020. The region’s growth is mainly driven by solid infrastructure for CNG/LPG vehicles and growing initiatives by the government to support the CNG vehicles in the area.

Competitive Landscape

Since the Indian Automotive CNG/LPG kit market has multiple players, the market is highly fragmented. Market competitors consistently invest in new products, expansion, and acquisition to stay ahead of the curve. Some key players in the India Automotive CNG/LPG kit market 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 others.

Recent Developments

In January 2021, Uttarakhand Transport Corporation (UTC) announced its plans to upgrade 25% buses from its existing fleet with CNG engines. In the first phase, around 400 buses operating on the Delhi route will be converted to CNG within the next 18 months. It is estimated that the conversion of the buses will save approximately ₹40 crores (400 million) per year.


Don’t miss the business opportunity of the India Automotive CNG/LPG kit market. Consult our analysts to gain crucial insights and facilitate your business growth.


The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the India Automotive CNG/LPG kit market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the India Automotive CNG/LPG kit market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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