India Automotive CNG/LPG Kit Market

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BlueWeave CONSULTING
India Automotive CNG/LPG Kit Market Indian
Automotive CNG LPG kit Market has reached USD
5.15 Million units in 2019 and is projected to
expand with a growth rate of 7.77, in Volume
terms, during 2020 to 2026. The market is
expected to generate a revenue of USD 8.68
million units by 2026. With a large number of
Indian cities embarking for cleaner fuel, CNG is
gaining momentum in the Indian automotive
market. The use of CNG/LPG kit in the
transportation sector is primarily driven by the
environmental and public health imperatives. CNG
LPG gas supply and infrastructure costs are
generally lower than other alternative
non-blended fuels. The cost of bulk CNG LPG
supplied to the service stations is generally
lower on an energy-content basis than for
gasoline. Rising demand for CNG LPG gas is not
predictable to raise significantly the cost of
LPG on the international spot market relative to
gasoline given the abundance of supplies. When
petrol and diesel costs '72 per litre, and '60
per litre while CNG costs only '45 per kilogram,
it is obvious that vehicle will consider getting
a CNG kit and leads to drive market across Indian
market. India Automotive CNG/LPG Kit Market
Overview CNG is compressed natural gas, mainly
compressed by methane at a pressure of 200 to 248
bar. LPG is liquefied petroleum gas, a 15 C
mixture of liquefied propane with butane, and a
1.7-7.5 bar pressure. Many types of LPG are
mainly propane so in colloquial terms, LPG is
often referred to as propane. CNG is cheaper and
cleaner but LPG is higher in calorific value.
While CNG produces greenhouse gases when
combusted, it is a safer alternative to other
fossil fuels, such as gasoline or LPG. A common
addition to both LPG and CNG is ethanethiol or
ethyl mercaptan. Mercaptan has a foul, rotten-egg
smell that facilitates the detection of gas leaks
in case of a spill due to the natural gas, CNG is
also safer than other fuels, being lighter than
air, disperses rapidly when released. Given that
LPG generates more energy than CNG, natural gas
can not simply be substituted. Only gases which
have the same Wobbe index is interchangeable. For
LPG to have the same Wobbe index as CNG, it is
mixed with the air. A ratio of 6040 for LPG air
mixing is common but it depends on the LPG
composition because LPG itself is a mixture of
propane and butane. This blend of LPG and air to
replace natural gas is known as synthetic natural
gas (SNG). Use of SNG is common before the CNG
distribution network is fully operational. Growth
drivers The rising number of passenger cars
across India The Indian automotive industry has
experienced steady growth in demand for and sales
of passenger cars due to improved economic
conditions and increased disposable income for
consumers. The country has seen a gradual shift
towards easy/comfortable transport, from
affordable transportation to luxurious and safe
transport. With the increasing presence of
international car manufacturers and brands in the
country and the
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willingness of consumers to purchase and maintain
new cars, consumers have been willing to buy more
than one passenger car to meet their different
daily needs and travel needs. With around 29
million passenger cars, light commercial
vehicles, and medium and heavy commercial
vehicles produced, India and China are the top
demand generators for CNG LPG automotive
kits. Low cost of CNG/LPG gas CNG LPG gas
supply and infrastructure costs are generally
lower than other alternative non-blended fuels.
The cost of bulk CNG LPG delivered to service
stations is usually more economical in terms of
energy content than for gasoline. Rising demand
for CNG LPG gas is not predictable, given the
abundance of supplies, to significantly increase
the cost of LPG on the international spot market
compared to gasoline. Restraints Electric-vehicle
inclination in the region Many cities are
projected to replace their current fuel-based bus
fleet with electric busses. The growing trend of
replacing the public transport fleet based on
fossil fuels with electric busses would boost the
growth of electric commercial vehicles during the
forecast period of 2020-2026 and will impede the
demand for CNG LPG Indian kits. The Government
of India has announced its National Electric
Mobility Mission Project (NEMMP) to support the
local manufacturing capabilities of automakers.
With this roadmap, the Government of India plans
to make electric vehicles economically viable and
self-sustaining by 2020. There is a wide range of
policies implemented by the government to support
the implementation of EVs and infrastructure. Indi
a Automotive CNG/LPG Kit Market Kit type Based
on Kit type, Automotive CNG/LPG Kit market
segmented into CNG, LPG. CNG kit sector expected
to grow with a rapid race, CNG autos have the
majority share in the total number of CNG-run
vehicles. Buses, cars, and light commercial
vehicles are also increasingly using this CNG
fuel and indirectly contribute to drive demand of
CNG kit in Indian automotive CNG/LPG kit market.
CNG kit market is projected to expand with a
growth at a significant rate during the forecast
period from 2020 to 2026. LPG facing handling
challenge in Indian market in terms of long
storage and tank size, which is expected to
hamper growth rate of LPG kits in Indian
automotive CNG/LPG kit Market during the forecast
period of 2020-2026.