CNG on a song

Domestic sales of compressed natural gas (CNG) vehicles are forecast to reach 1.1 million units by the end of this fiscal, driven by the government’s ongoing push for cleaner fuels.

This will take the CNG vehicle count in India to 7.5 million, a 3x increase from 2.6 million in fiscal 2016, and translating into a compound annual growth rate (CAGR) of ~12%.

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%.

Rising sales of CNG passenger vehicles has driven up their penetration in the overall passenger vehicle