Powertrain diversity | Examining the role of CNG in the future of mobility

Powertrain diversity is emerging as a transformative concept in the mobility sector, particularly with the integration of compressed natural gas (CNG) as a key player in creating a sustainable transportation ecosystem.

This approach combines various powertrain technologies—including electric, hybrid, biofuels, and traditional internal combustion engines—to meet the complex challenges of modern transportation while addressing carbon emissions and air quality, writes Vivek Sharma, Principal Analyst – Powertrain & Compliance Forecast at S&P Global Mobility. In his analysis, Vivek underscores CNG’s significant potential as an alternative fuel option within the transportation sector.

The Role of CNG in Sustainable Mobility

In India, the growing adoption of CNG vehicles among budget-conscious consumers marks a significant shift towards cost-effective and environmentally friendly fuel options. Cars priced under INR 10 lakhs primarily target the middle class, with CNG providing a compelling alternative to traditional fuels like petrol and diesel, thanks to its lower costs and reduced emissions.

Market Landscape

Maruti Suzuki India (MSIL) leads the CNG market, holding approximately 72% of the share.

Tata Motors has strengthened its CNG offerings in 2022 by introducing advanced iCNG technology in entry-level cars, positioning itself to secure the second spot with around 15% market share. Notably, Tata was the first to implement twin-cylinder technology and automated manual transmission (AMT) in the CNG segment. Hyundai is also making significant strides with its Hy-CNG dual-cylinder technology, which has garnered positive customer feedback and is expected to capture about 12% market share by 2024 (as shown in the graphs in the later sections).

Many manufacturers are rolling out factory-fitted CNG variants of popular models, which enhance reliability and performance compared to aftermarket conversions. This shift is crucial as compliance with stricter emission standards like BS6 and RDE 2 drives consumers away from diesel and toward cleaner alternatives.

Economic Benefits

With rising fuel prices for gasoline and diesel, CNG presents substantial savings opportunities for individual consumers and fleet operators. It serves as a transitional fuel, appealing to those not yet ready to transition to Battery Electric Vehicles (BEVs).

Government Support and Industry Engagement

Strong government initiatives promoting cleaner fuels enhance CNG’s growth potential, facilitating infrastructure development and increasing consumer awareness. In my estimate, the share of factory-fitted CNG cars could stabilize at 20-22% by FY30. The automotive industry is increasingly investing in CNG technology alongside electric options, broadening consumer choices.

Furthermore, the optimized performance of factory-fitted systems alleviates concerns about engine efficiency and longevity, making CNG an attractive choice in the evolving automotive landscape.

Government Initiatives and Infrastructure Development

Government initiatives promoting cleaner fuels and developing CNG infrastructure have further bolstered the adoption of CNG cars, especially in urban areas where pollution is a pressing concern.

The establishment of CNG refueling stations has expanded rapidly, providing the necessary support for consumers to transition to this cleaner fuel. In many metropolitan areas, local governments are also incentivizing the use of CNG through subsidies and grants for both consumers and businesses.

Taxation Variability and Its Impact

However, taxes on CNG can vary significantly by state and city in India, impacting its overall affordability and adoption. Some regions impose lower taxes on CNG, making it a more attractive option compared to petrol and diesel. For example, states like Gujarat and Maharashtra have implemented favourable tax structures that encourage the use of CNG. In contrast, other areas may have higher taxes that can diminish CNG’s cost advantages, affecting consumer choice.

The disparity in taxation can lead to inconsistent adoption rates across the country. Effective policy coordination at both the national and state levels is essential to promote CNG as a viable alternative fuel. Policymakers must consider not only the direct financial implications for consumers but also the broader environmental benefits of reducing air pollution.

Despite the recent reduction in APM (Administered Price Mechanism) gas volumes, CNG continues to shine as a smart, cost-effective fuel choice for the short and mid-term. With fuel costs rising across the board, CNG would still provide substantial savings over petrol and diesel, making it a highly attractive option for consumers.

Advantages of CNG Over Other Fuels

CNG provides numerous benefits that enhance its appeal in the context of a diverse powertrain landscape. It has a lower carbon footprint compared to gasoline and diesel, contributing to cleaner air quality, particularly in densely populated urban areas. Additionally, CNG combustion produces fewer particulate emissions and nitrogen oxides, making it a cleaner alternative that aligns with global efforts to reduce vehicular pollution.

The use of CNG is especially beneficial for fleet operations, where its affordability can significantly reduce overall costs. Many public transportation systems are transitioning to CNG buses, recognizing the dual benefits of lower fuel costs and reduced emissions. These fleets not only contribute to better air quality but also serve as a model for other sectors to follow.

Technological Integration and Future Prospects

The push for powertrain diversity is fueled by technological advancements, shifting consumer preferences, and the pressing need to combat climate change. While electric vehicles (EVs) are gaining popularity for their low emissions, CNG offers unique advantages in terms of refuelling speed and range, making it ideal for applications like public transit and long-haul trucking.

Additionally, CNG can work alongside other clean technologies, enhancing energy security and promoting a circular economy—especially when integrated with biofuels derived from waste. This synergy not only improves the environmental footprint of transportation but also fosters innovation in vehicle design and infrastructure development.

Bio CNG: A Decarbonization Solution

Among the various clean technologies, Bio CNG stands out as a particularly promising option for decarbonizing mobility.

Derived from organic waste through anaerobic digestion, Bio CNG not only provides a renewable energy source but also plays a crucial role in reducing methane emissions, especially in a country like India, where methane inventory is a significant concern due to agricultural and waste management practices.

By utilizing Bio CNG in transportation, we can tackle two critical issues simultaneously: decarbonizing mobility and managing methane emissions. In urban areas, where waste generation is high, Bio CNG can be produced locally, reducing transportation costs and environmental impact.

Moreover, integrating Bio CNG with other clean technologies can improve energy security. For instance, when combined with biofuels from agricultural residues or food waste, it not only optimizes fuel production but also creates a more resilient energy ecosystem.

By leveraging a mix of powertrains, manufacturers can optimize performance, reduce costs, and meet diverse market demands. Urban areas may benefit from the efficiency of electric and hybrid vehicles, while rural regions can rely on CNG and traditional combustion engines for longer trips.

Conclusion: A Holistic Approach to Mobility

In conclusion, powertrain diversity—with a strong emphasis on CNG—represents a forward-thinking strategy that enhances sustainability, efficiency, and adaptability in transportation systems. Continuous innovation and strategic investment in CNG and other technologies will ensure a resilient transportation landscape that evolves responsibly and inclusively.

As we move forward, it is crucial to focus on creating a robust ecosystem that supports CNG alongside other clean technologies. This includes further investments in infrastructure, consistent taxation policies, and public awareness campaigns highlighting the benefits of CNG.

This interview was first published in EVreporter Nov 2024 magazine.

Also read: EVreporter visits C1973 Powertrain Lab at IIT Bombay