Domestic annual sales of Compressed Natural Gas (CNG) vehicles are forecast to reach 1.1 million units by the end of the current financial year, driven by the government’s ongoing push for cleaner fuels, according to a Crisil report released on Wednesday.
This will take the CNG vehicle count in India to 7.5 million, a 3 times increase from 2.6 million in fiscal 2016, and translate into a Compound Annual Growth Rate (CAGR) of around 12 per cent, the report states.
The rapid uptake has been undergirded by the expansion of the CNG infrastructure, with the number of filling stations set to rise to over 7,400 from 1,081 in fiscal 2016, etching a CAGR of 24 per cent.
The report also states that rising sales of CNG passenger vehicles has driven up their penetration in the overall passenger vehicle population to 15-16 per cent this fiscal-end vs 5.6 per cent in fiscal 2016.
The availability of over 30 CNG car variants, compared with single digit not long ago, thus catering to diverse consumer preferences, has accelerated adoption.