Rising fuel costs and prohibitively expensive electric vehicles are making compressed natural gas (CNG) “a welcome relief and alternate fuel” for mobility for Indian consumers, according to a report by NRI (Nomura Research Institute) Consulting & Solutions.
CNG vehicle sales continued to grow in FY22, rising by 55 per cent to 2,65,383 units in FY22 compared to 1,71,288 units in FY21, as per NRI’s report titled ‘Path to clean mobility: Increasing penetration of NGVs in India’.
In the last five years, the penetration of CNG vehicles has also increased, and its parc has grown at a CAGR of 5.3 per cent to 37.97 lakh units as of March 2022 from 30.90 lakh units in March 2018, the report said. “With increased differential TCO (total cost of ownership) benefits compared to other fuels, CNG is gaining more prominence among consumer preference post-BS-VI.
