Report Overview

India Automotive CNG and LPG Kit Market – Industry Trends & Forecast Report 2027

The India Automotive CNG and LPG kit market reached 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. With a large number of Indian cities embarking for cleaner fuel, CNG is gaining momentum in the Indian automotive market. India's automotive CNG and LPG kits market is growing due to public health and environmental concerns, a growing number of passenger cars across the country, and a rising demand for CNG and LPG gas.  Additionally, the low CNG & LPG gas supply, infrastructure cost, and surging prices of petrol and diesel in India are some factors propelling the growth of the India Automotive CNG and LPG kit market.

Source: BlueWeave Consulting

India Automotive CNG/LPG Kit Market Overview:

A CNG/LPG kit is a mixing unit that delivers gas to the engine of the vehicle. Venturi and sequential are the two most common types of CNG/LPG kits available in the market and are used in most automobiles. A Venturi kit is commonly used in carbureted cars, while a sequential kit is more appropriate for multi-point fuel-injected cars. Venturi kits are also more affordable and sequential kits provide better performance and mileage to the vehicle. CNG/LPG kits are witnessing increased demand with prices of petrol and diesel surging rapidly and government’s promoting use of clean fuel in the vehicles. CNG and LPG are also known as “clean fuels” owing to low emission of harmful gases and low deposition of residue after burning.

India Automotive CNG/LPG Kit Market Forecast and Trend

Growth Drivers

The rising number of passenger cars across India

The Indian automotive industry has experienced steady growth in demand for passenger cars due to improved economic conditions and increased disposable income for consumers. Gradually, the country has moved from affordable transportation to luxurious and safe transportation that is easy/comfortable. The India Brand Equity Foundation reports that 3.49 million passenger and commercial vehicles were sold in India in 2020, with domestic automobile sales increasing by 1.29% between FY2016 and 2020.

Furthermore, with the increasing number of international car manufacturers and brands in the country and consumers' willingness to buy and maintain new cars, consumers are willing to buy more than one vehicle to suit their travel demands. The top demand generators of CNG & LPG automotive kits in Asia are India & China, which produce 29 million passenger cars, light commercial vehicles, medium and heavy commercial trucks each year.

Low cost of CNG/LPG gas

CNG & LPG gas supply and infrastructure costs are generally lower than other alternative non-blended fuels. The price of bulk CNG & LPG delivered to service stations is usually more economical in terms of energy content than for gasoline. Cost of 1 kg CNG is ₹43.40 (USD 0.59) in Delhi, while 1 liter of petrol is around ₹101.19 (USD 1.38), and for diesel, it is ₹88.62 (USD1.21). The high cost of petrol & diesel and the emission of greenhouse gases make CNG a desirable option for vehicle owners. The growing number of auto drivers are moving towards CNG, fueling the demand for CNG kits and driving the growth of the India automotive CNG/LPG kit market.

Restraints

Electric-vehicle inclination in the region

Several Indian cities are planning to replace their current fuel-based bus fleets with electric buses. There is a shift in public transportation toward using electric buses, which will boost the growth of commercial electric vehicles in the forecast period and reduce the demand for CNG & LPG Indian kits. In a bid to support the local manufacturing capabilities of automakers, the Indian government announces the National Electric Mobility Mission Project (NEMMP). With this roadmap, the Government of India plans to make electric vehicles economically viable and self-sustaining in the coming years. Tesla, one of the world's leading electric car manufacturers, has entered the Indian market as well. All these factors are likely to affect the demand for CNG/LPG kits in India and hamper the growth of the India automotive CNG/LPG Kit market.

Impact of COVID-19 in the industry

COVID-19 negatively affected the India automotive CNG/LPG Kit market as people stopped going out due to lockdown restrictions imposed by the Indian government to check the spread of the deadly coronavirus. Following the declaration of a nationwide lockdown, Indian companies began working from home. As a result, the automotive industry came to a standstill, and the demand for CNG/LPG kits declined drastically. As the lockdown restrictions eased by year's end, most companies allowed their employees to continue working from home, affecting the recovery of the Indian automotive CNG/LPG Kit market. However, with the vaccination drive going in full swing, the sales of automobiles in India are expected to increase significantly by the end of 2021, contributing to the market's recovery.

India Automotive CNG/LPG Kit Market: By Kit Type

The India automotive CNG/LPG Kit market can be classified as CNG or LPG, depending on the kit types. The CNG kit sector is expected to grow at a rapid rate during the forecast period. Among CNG-powered vehicles, autos occupy the majority of the market. Buses, cars, and light commercial vehicles are also increasingly using CNG fuel and indirectly contributing to the growing demand for CNG kits in the India automotive CNG/LPG kit market. On the other hand, LPG kits in India's automotive CNG/LPG kit market are likely to be hindered by prolonged storage and tank size challenges in the coming years. This is expected to hamper the growth rate of the LPG kits market in India over the forecast period of 2021-2027.

Source: BlueWeave Consulting

India Automotive CNG/LPG Kit Market: Regional insights

Based on regions, India Automotive CNG/LPG Kit market is segmented into Northern India, Southern India, Eastern India, Western India. Northern India dominated the Automotive CNG/LPG Kit market in 2020 and is likely to maintain its dominance even during the forecast period. The northern region holds the largest share due to its large vehicle fleet, good CNG/LPG vehicles infrastructure, and government initiatives to support CNG vehicles. Around 1.09 crore (10.9 million) vehicles were registered in Delhi in 2018, according to the Delhi Economic Survey 2018-19. Additionally, Gurgaon's emergence as a "Cyber City" has increased the number of automobiles in the NCR region, which supports the market share held by the northern region in the India Automotive CNG/LPG Kit market.

Source: BlueWeave Consulting

Competitive Landscape

Key Players for 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 other prominent players. Market players are using different strategies, innovations and technologies to expand their presence in the market.

Recent Developments

• In August 2021, West Bengal Transport Corporation (WBTC) announced plans to introduce five buses with CNG engines, apart from their existing diesel engines. Following the CNG delivery station set up by Bengal Gas Company Limited (BGCL), WBTC ran the buses on trial. WBTC said that if CNG was not available, buses might run on diesel/

• In August 2021, Nagpur Municipal Corporation (NMC) partnered with Rawmatt Industries to switch its fleet of 25 cars and 25 buses to CNG in August 2021 as part of a partnership with Rawmatt Industries. NMC plans to convert 200 standard-sized buses and 195 mid and mini-diesel buses to CNG.

Scope of the Report

Scope of the Report

• By Kit Type
  • CNG
  • LPG
• By Vehicle Type
  • Passenger Car
  • Light Commercial Vehicle
  • Medium Commercial Vehicle
  • Others
• By Region
  • North India
  • South India
  • East India
  • West India

1.    Research Framework

1.1. Research Objective

1.2. Technology Overview

1.3. Market Segmentation

2.    Research Methodology

2.1. Qualitative Research

2.1.1.   Primary & Secondary Sources

2.2. Quantitative Research

2.2.1.   Primary & Secondary Sources

2.3. Breakdown of Primary Research Respondents, By Region

2.3.1.   Secondary Research

2.3.2.   Primary Research

2.4. Breakdown of Primary Research Respondents

2.5. Market Size Estimation

2.6. Assumption for the Study

2.7. Market Breakdown & Data Triangulation

3.    Executive Summary

4.    India Automotive CNG/LPG Kit Industry Insights

4.1. Industry Value Chain Analysis

4.2. DROC Analysis

4.2.1.   Growth Drivers

4.2.2.   Restraints

4.2.3.   Opportunities

4.2.4.   Challenges

4.3. Technological Landscape

4.4. Regulatory Framework

4.5. Company market share analysis,2019

4.6. Porter’s Five forces analysis

4.6.1.   Bargaining Power of Suppliers

4.6.2.   Bargaining Power of Buyers

4.6.3.   Threat of New Entrants

4.6.4.   Threat of Substitutes

4.6.5.   Intensity of Rivalry

4.7. PESTEL Analysis

5.    India Automotive CNG/LPG Kit Market Overview

5.1. Market Size & Forecast 2016-2026

5.1.1.   By Value (USD Million)

5.2. Market Share & Forecast

5.2.1.   By Kit Type

5.2.1.1.       CNG

5.2.1.2.       LPG

5.2.2.   By Product Type

5.2.2.1.       Passenger Car

5.2.2.2.       Light Commercial Vehicle

5.2.2.3.       Medium Commercial Vehicle

5.2.2.4.       Others

5.2.3.   By Region

5.2.3.1.       Northern India

5.2.3.2.       Southern India

5.2.3.3.       Eastern India

5.2.3.4.       Western India

6.    Company Profile (Company Overview, Financial Matrix, Key Technology landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)

6.1. Maruti Suzuki

6.2. Hyundai Motor

6.3. Mahindra & Mahindra

6.4. TATA Motors Limited

6.5. Bajaj

6.6. Piaggio

6.7. General Motors

6.8. Honda Motor Co. Ltd.

6.9. Ford Motor

6.10.             Toyota Motor Corporation

6.11.             Ashok Leyland

6.12.             Other Prominent Players

List of Figures

Fig: India Automotive CNG/LPG Kit Segmentation

Fig: India Automotive CNG/LPG Kit Market Value Chain Analysis

Fig: Company Market Share Analysis, 2019

Fig: India Automotive CNG/LPG Kit Market Size, By Value (USD Million), 2016-2026

Fig: India Automotive CNG/LPG Kit Market Share, By Kit Type, By Value, 2016-2026

Fig: India Automotive CNG/LPG Kit Market Share, By Product Type, By Value, 2016-2026

Fig: India Automotive CNG/LPG Kit Market Share, By Region, By Value, 2016-2026

Fig: Northern India Automotive CNG/LPG Kit Market Size, By Value (USD Million), 2016-2026

Fig: Northern India Automotive CNG/LPG Kit Market Y-o-Y Growth, By Value, 2017-2026

Fig: Northern India Automotive CNG/LPG Kit Market Share, By Kit Type, By Value, 2016-2026

Fig: Northern India Automotive CNG/LPG Kit Market Share, By Product Type, By Value, 2016-2026

Fig: Northern India Automotive CNG/LPG Kit Market Share, By Country, By Value, 2016-2026

Fig: Southern India Automotive CNG/LPG Kit Market Size, By Value (USD Million), 2016-2026

Fig: Southern India Automotive CNG/LPG Kit Market Y-o-Y Growth, By Value, 2017-2026

Fig: Southern India Automotive CNG/LPG Kit Market Share, By Kit Type, By Value, 2016-2026

Fig: Southern India Automotive CNG/LPG Kit Market Share, By Product Type, By Value, 2016-2026

Fig: Southern India Automotive CNG/LPG Kit Market Share, By Country, By Value, 2016-2026

Fig: Eastern India Automotive CNG/LPG Kit Market Size, By Value (USD Million), 2016-2026

Fig: Eastern India Automotive CNG/LPG Kit Market Y-o-Y Growth, By Value, 2017-2026

Fig: Eastern India Automotive CNG/LPG Kit Market Share, By Kit Type, By Value, 2016-2026

Fig: Eastern India Automotive CNG/LPG Kit Market Share, By Product Type, By Value, 2016-2026

Fig: Eastern India Automotive CNG/LPG Kit Market Share, By Country, By Value, 2016-2026

Fig: Western India Automotive CNG/LPG Kit Market Size, By Value (USD Million), 2016-2026

Fig: Western India Automotive CNG/LPG Kit Market Y-o-Y Growth, By Value, 2017-2026

Fig: Western India Automotive CNG/LPG Kit Market Share, By Kit Type, By Value, 2016-2026

Fig: Western India Automotive CNG/LPG Kit Market Share, By Product Type, By Value, 2016-2026

Fig: Western India Automotive CNG/LPG Kit Market Share, By Country, By Value, 2016-2026

List of Tables:

Table: India Automotive CNG/LPG Kit Market Vendor Matrix

Table: India Automotive CNG/LPG Kit Market Size, By Kit Type, By Value, 2016-2026

Table: India Automotive CNG/LPG Kit Market Size, By Product Type, By Value, 2016-2026

Table: India Automotive CNG/LPG Kit Market Size, By Region, By Value, 2016-2026

Table: Northern India Automotive CNG/LPG Kit Market Size, By Kit Type, By Value, 2016-2026

Table: Northern India Automotive CNG/LPG Kit Market Size, By Product Type, By Value, 2016-2026

Table: Northern India Automotive CNG/LPG Kit Market Size, By Country, By Value, 2016-2026

Table: Southern India Automotive CNG/LPG Kit Market Size, By Kit Type, By Value, 2016-2026

Table: Southern India Automotive CNG/LPG Kit Market Size, By Product Type, By Value, 2016-2026

Table: Southern India Automotive CNG/LPG Kit Market Size, By Country, By Value, 2016-2026

Table: Eastern India Automotive CNG/LPG Kit Market Size, By Kit Type, By Value, 2016-2026

Table: Eastern India Automotive CNG/LPG Kit Market Size, By Product Type, By Value, 2016-2026

Table: Eastern India Automotive CNG/LPG Kit Market Size, By Country, By Value, 2016-2026

Table: Western India Automotive CNG/LPG Kit Market Size, By Kit Type, By Value, 2016-2026

Table: Western India Automotive CNG/LPG Kit Market Size, By Product Type, By Value, 2016-2026

Table: Western India Automotive CNG/LPG Kit Market Size, By Country, By Value, 2016-2026

Table: Maruti Suzuki Financial Analysis

Table: Hyundai Motor Financial Analysis

Table: Mahindra & Mahindra Financial Analysis

Table: TATA Motors Limited Financial Analysis

Table: Bajaj Financial Analysis

Table: Piaggio Financial Analysis

Table: General Motors Financial Analysis

Table: Honda Motor Co. Ltd. Financial Analysis

Table: Ford Motor Financial Analysis

Table: Toyota Motor Corporation Financial Analysis

Table: Ashok Leyland Financial Analysis

*Financial Details will be captured as per data availability in case of unlisted companies

**The segmentation and the companies are subjected to modifications based on the in-depth secondary for the final deliverable.