Tata Motors, a leading player in the Indian electric vehicle (EV) segment, is now setting its sights on expanding its market share in compressed natural gas (CNG)-powered mass market passenger vehicles. The company is banking on its dual-cylinder CNG technology to account for 30 percent of the segment’s sales.
Growing Demand
Tata Motors Sells 12,000 CNG Passenger Vehicles Monthly
Tata Motors is currently selling around 12,000 CNG passenger vehicles each month, showcasing a growing demand for CNG vehicles in India. The company’s CNG portfolio consists of four vehicles: Tiago, Tigor, Altroz, and the upcoming Punch CNG. With this lineup, Tata Motors expects to achieve annual sales of approximately 150,000 units within the next couple of years. The company aims to have an equal distribution of sales among three powertrain options—petrol, CNG, and electric—by the end of the decade, with flex fuels making up a smaller percentage.
Altroz CNG: Introducing Twin Cylinder Technology
Tata Motors recently launched the Altroz model with a distinctive twin-cylinder CNG tank design that ensures minimal compromise to the boot space—a critical consideration for car buyers. The Altroz CNG addresses key concerns of CNG car buyers, such as performance, features, and space.
Rising CNG Car and SUV Market in India
The CNG vehicle segment in India has been experiencing significant growth in recent years, with currently around 17 models available in the market. The expansion of CNG filling stations across the country has contributed to this growth. Surprisingly, private car buyers account for 80 percent of CNG vehicle sales, indicating a growing interest among individual consumers. Fleet buyers’ share has decreased due to advancements in technology and the wider distribution network.
Positive Outlook: Tata Motors’ Future Plans
Shailesh Chandra, Managing Director of Tata Motors Passenger Vehicles Limited, expressed optimism about the company’s multi-train powertrain strategy, which has driven its growth rate higher than the overall market. Chandra anticipates that CNG penetration will increase from the current 10 percent to 25 percent by the end of the decade. Tata Motors aims to align with or even surpass this growth trajectory.
Price Fluctuations and Market Dynamics
Although the increase in CNG prices briefly impacted sales, the market regained momentum after the Kirit Committee recommended price revisions. Demand for Tata Motors’ brands remains steady, and the company strives to outperform the market, projected to grow by 5-7 percent.
Future Production Plans
Industry insiders reveal that Tata Motors plans to produce 600,000 to 620,000 units in the fiscal year 2023-2024, marking a growth rate of over 10 percent. With this aggressive production target, Tata Motors aims to meet the increasing demand for CNG vehicles in India.
