The Indian auto industry is the 3rd largest in the world and expected to reach US$ 251.4-282.8 billion by 2026. Global dependence upon oil is a burning issue and India is also not spared from its dependence on oil imports. The transport sector in India currently consumes more than 50% of petroleum products and accounts nearly 12% of India’s energy-related CO2 emissions. Green fuel is the need of the hour and the different Ministries & organizations are leaving no stone unturned in supporting the green initiative by constantly emphasizing the use of Green Fuels to curb pollution.
India is moving towards cleaner emission standards of fuel and doing major investments in its refineries over the next few years to move from Bharat IV to Bharat VI by 2020,
thereby reducing sulphur and nitrous emissions. Natural Gas, being a clean and efficient fuel, can provide a viable alternative as a transport fuel. Although improvement of air quality will result from an increased transition to this cleaner fuel, the primary motivator is to reduce dependence on oil imports.
Indian government recently unveiled a Natural Gas Infrastructure Development Plan to set up 10,000 CNG stations over the next 10 years. Investors are betting on the potential growth as work is underway for expansion of CGD network at nearly half of India’s geography.
The current number of NGV fleets in India is around 3 million as per NGV Global statistics and expected to grow by 5 times in the next 5 years. This massive infrastructure expansion will unleash great potential for automobile sector to manufacture CNG-LNG vehicles. With a large number of Indian cities embarking for cleaner fuel, NGV is pacing the way for a revolutionary growth in the Indian automobile market.