Tata Motors Eyes 10% Sales From CNG Variants
Tata Motors Ltd., which plans to make vehicles powered by compressed natural gas, expects the segment to generate 10% of its volumes as traditional fossil fuels—petrol and diesel—remain expensive.
“Growing concern of rising cost of diesel, expansion of CNG stations, and roll-out of city gas distribution networks are all helping in increasing the popularity of CNG models,” Shailesh Chandra, managing director of Tata Motors Passenger Vehicles Ltd. and Tata Passenger Electric Mobility Ltd., told BloombergQuint in an interview.
Chandra said in segments like hatchbacks and compact sedans, CNG is becoming the preferred option and has overtaken diesel after introduction of BS-VI emissions norms. “In the first six months of the ongoing financial year the industry has seen 96% growth in demand for CNG vehicles.”
The automaker has launched the iCNG technology in two of its brands—Tiago and Tigor. While the Tiago iCNG will be available at the company’s authorised sales outlets at a starting price of Rs 6.09 lakh ex-showroom Delhi, Tigor will be available at Rs 7.69 lakh.
India’s largest carmaker, Maruti Suzuki India Ltd. leads the CNG market with over 85% market share, followed by Hyundai Motor India Ltd.
Tata Motors had to postpone its foray into the CNG segment amid the global shortage of semiconductor chips. “We were ready with the car much earlier, but also had to give other launches some time to settle, and at the same time wanted the chip shortage issue to subside a bit.”
Overall, Chandra said 10% of the volumes would come from CNG variants by the end of the year. “This will continue to grow as the CNG network keeps on increasing.”
On the ongoing chip shortage, he said supplies are likely to improve 10-15% in the ongoing quarter.