NGV India Summit highlights emerging opportunities for natural gas vehicle industry in India

Amid soaring petrol and diesel prices concerning the citizens of India, the fifth edition of Natural Gas Vehicle (NGV) India Summit was indeed scheduled at the perfect time. Witnessing 125 industry experts and professionals in attendance, the significant platform highlighted the importance of natural gas in the auto industry and the way forward in terms of challenges faced, opportunities and overall acceptance of the clean fuel.

The conference was inaugurated by the most influential members from the industry that included:

1. Mr AK Jana, MD, Indraprastha Gas Ltd
2. Mr Amit Shah, MD, Ace Gas Conversions Pvt Ltd
3. Mr SC Gupta, Joint Advisor, Petroleum and Natural Gas Regulatory Board
4. Mr Ashish Chutani, Chairman, SIAM Gas Based Mobility Group and Head – Government & Policy Affairs, Maruti Suzuki India Ltd
5. Mr Ashim Sharma, Partner & Group Head, Nomura Research Institute (NRI) Consulting & Solutions India Pvt Ltd

Addressing the attendees at the inauguration Mr AK Jana, Managing Director, Indraprastha Gas Ltd stated: “Now is the time for natural gas vehicles.” Congratulating Messe Frankfurt India, he further added: “It was a fantastic opportunity to participate at NGV India Summit. It was a big relief to come out and have face-to-face discussions with my peers and other energy experts. The event was held focussing on relevant topics with some very good sessions from the members of the government and the industry.”

The members at the inauguration also unveiled a special report on the NGV sector by Nomura Research Institute (NRI) Consulting & Solutions India Pvt Ltd. Talking about the current dynamic of the industry, Mr Ashim Sharma, Partner & Group Head, Nomura Research Institute (NRI) Consulting & Solutions India Pvt Ltd shared: “There is high rate of penetration of NGVs in the country as it has grown at about 7% from March 2016 to March 2020. Improvement of fuel infrastructure in the country has also witnessed a surge at about 20% CAGR during the same period. The city gas distribution is the prime consumer of natural gas with more than half being consumed by the transport sector. As per the honourable minister another 10,000 CNG stations would be set up in the next 10 years. The government is also planning to invest about INR 100 billion in LNG stations with the construction of the first 50 LNG stations recently launched.”

The sessions started on a powerful note with speakers discussing crucial topics like increasing penetration of NGVs in India, natural gas mobility sector post COVID – 19, LNG as a transportation fuel in India, the current status of natural gas mobility industry in India along with its challenges and opportunities along with among others.

There is an enhanced customer preference for CNG primarily on account of lower total cost ownership. Increase in focus of OEMs in all the vehicular segments for NGVs and upcoming alternatives sources of compressed natural gas supporting regulatory environment were some of the major factors aiding to the growth of natural gas vehicle industry.

Talking about the recent developments and future trends emerging in the natural gas vehicle industry, Mr Chiradeep Datta, Chief Operating Officer – Kerala and Karnataka, and Head, Operations & Maintenance, Atlantic Gulf & Pacific Company shared: “India’s energy sector and a large part of its economic development will be dominated by energy transition to natural gas. NGVs are critical for having a clean energy future and therefore it is encouraging to see huge impetus being laid down by the government for the use of a cleaner and lower-cost natural gas as an alternative to traditional fuels ensuring availability of CNG across the country.”

Delegates attending the conference shared a unanimous opinion of the platform being a great way to interact with industry peers as they shared a common goal of encouraging the use of natural gas vehicles in the country.

The capital has switched almost all commercial vehicles on gas. In future, Delhi is also looking to adopt HCNG that is an improved version of CNG. Even though electric vehicles will make an entrance, 70% of the share is said to remain with vehicles running on gas. With immense support from the government, rising cost of renewable resources and awareness towards adoption of green fuels for its environmental benefits, the country must invest in gas vehicles by improving the infrastructure and vehicle technology in the near future. Supporting this revolution, NGV India Summit will continue to be a pioneer platform that brings natural gas vehicle industry experts under one roof to discuss future developments and business.