Tata Motors to launch CNG trucks next year

Tata Motors is expected to launch compressed natural gas (CNG) powered trucks in the medium and heavy segments for the domestic market within a year, sources close to the development told FE. The development of the new CNG trucks is scheduled to be completed within six months. These trucks will be dual-fuel powered—along with CNG, they will have the option to run on conventional fuel diesel.

The CNG-propelled trucks will be variants of Tata Motors’ existing truck range including SE 1613, LPT 1613, LPT 2515 and others. Sources said the company is not planning CNG on its Prima range of trucks developed with its Korean partner Daewoo, launched recently.

To overcome the drop in horsepower, caused due to use of CNG on the trucks, Tata Motors will use advanced fuel injection systems, the source said. At present, the SE 1613 has 125 horsepower, while LPT 2515 has 142 horsepower. The CNG-run trucks will be available with three CNG cylinder capacity options including 490 litre, 390 litre and the 300 litre models.

With CNG, experts debate a 70% energy cost savings and at least 20% less emissions by vehicles. CNG costs Rs 31.47 per kg in Mumbai while diesel comes for Rs 44 per litre.

This will be first-of-its-kind in the market and comes at a time when the government is looking at doubling the CNG network in the country in the next five years. Natural gas demand is expected to grow at more than 10% annually to over 300 standard million cubic meters per day, with nearly 200 cities receiving CNG by 2015. CNG vehicles can also cushion users against high fuel prices in the event of a deregulation in diesel prices, although it is unlikely the government will decide on such a move in the short term.

Considering the limited reach of CNG in the country, the company will be targeting markets like New Delhi, parts of Maharashtra and the North-East. In terms of cost implications, CNG trucks will cost around Rs 2 lakh more than the diesel range. To mention, the 1613 truck is priced around Rs 16 lakh and the 2515 truck is priced around Rs 18 lakh at present.

Currently, the transportation sector consumes around 45% of the diesel in the market. The use of natural gas vehicles in India is ranked fifth in the world and is seen growing at a rate of 45% per year against a global arrange of 30%. There are around 7 lakh vehicles in the country running on CNG (limited markets) today and the government wants to double the number in the next three years. In Mumbai alone, with a network of about 150 CNG Stations at present there are over two lakh vehicles are running on CNG.

?CNG penetration in commercial vehicles has been negligible due to the limited supply. With the government committed to expand the network, one can expect the automakers to tap the opportunity. However, it is still a while to go,? said an auto analyst, adding that one of the markets that has a considerable penetration of CNG in commercial vehicles is Thailand.

CNG is available in 16 cities in the country and will be taken up to 86 cities in the next three years. The government has already sanctioned 6,335 kms of pipeline and the Petroleum & Natural Gas Regulatory Board (PNGRB), is in the process of authorising another 5,000 km of pipelines to connect various parts of the country.