Tata Motors To Enter CNG Space With Factory-fitted Kits Soon

by Chandrutpal Kashyap | 15/04/2021
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As fuel prices skyrocket northwards, alternative fuel sources are seeing increased demand. Tata Motors plans to tap into the CNG space with factory fitted kits in its vehicles by this year itself.

Indian auto giant Tata Motors has stated that it plans to enter the CNG-fuelled passenger vehicle segment in 2022. Currently, Tata provides the option to get CNG kits fitted in some of its vehicles at dealerships. The new plan will see the automaker sell some of the models with a factory fitted CNG kit. The move is more significant as prices of petrol and diesel have been reaching record heights, and CNG is a viable alternative. The new option will also complement the manufacturer’s lineup of EVs.


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Tata Motors To Enter The CNG Space With Factory Fitted Kits

Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors, stated that factory-fitted CNG options will be introduced in the current fiscal. He said, "Currently, we have a comprehensive PV portfolio with ICE and EV options for customers to choose from. Our customers also have the option to get the CNG kits fitted at the dealerships. In FY22, our customers will also get a factory-fitted CNG option for some of our models," Chandra said.

Chandra cites, the new launches as well as continuing its financing support with attractive interest rates as some of the main reason for the rise in sales for Tata Motors. "Movement of people within the city and intercity has started. However, owing to limited public transport options and concerns over travel in available public transport options on account of the Covid-19 pandemic, reliance on private transport is expected to increase, giving a boost to the demand for the vehicles. We are also seeing good traction from the rural sector owing to good Rabi harvest post the festive season," Chandra said.

Chandra also pointed out the improving indicators that show up slowly, but are surely moving towards a more sustainable demand trajectory. Tata Motors posted its highest sales in nine years in March 2021, selling 29,654 units compared to 5,676 units in the same period last year. The automaker also posted its highest annual sales in 8 years in FY21, registering a growth of 69% over FY20.


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Tata is feeling bullish about the demand in CY21, according to Chandra. He says, "Sales momentum will continue on the back of strong economic fundamentals which are driving key macroeconomic indicators such as the positive outlook of GDP growth, uptake in rural consumption, continued urban demand, attractive interest rates and expected recovery in SMEs,"

Asked about the new second wave of Covid-19, Chandra said that last year’s learning has prepared the automaker to tackle any disruptions in 2021.

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