Cheaper Gas Fuels to Slash Running Costs by Half, Say Car Makers

Strategic Insights -

Car makers are preparing to roll out premium cars that run on cheaper gas fuels like compressed natural gas (CNG) and liquefied petroleum gas (LPG), which can slash running costs by almost half. Toyota Corolla, Maruti SX4, Skoda Octavia, and General Motors' Chevrolet Aveo are set to come in CNG and LPG versions soon. This move comes in response to growing customer concerns about running costs, which can be a major factor in car purchasing decisions. Car makers are also exploring alternative fuel options like bio-diesel and hybrid vehicles to reduce emissions and lower costs.

Key Takeaways:

  • Toyota Corolla, Maruti SX4, Skoda Octavia, and General Motors' Chevrolet Aveo are set to come in CNG and LPG versions, offering almost 50% lower running costs compared to conventional fossil fuels.
  • Hyundai Accent's CNG version has seen significant sales growth in cities where CNG is available, with sales zooming in cities like Delhi, Agra, Mumbai, and Ahmedabad.
  • Car makers are working on extending the benefit of cheaper and greener fuel to mid-size cars, which saw a 3% YoY decline in sales during April and May.
  • Skoda Auto is considering the gas-based fuel options for India, including the Greenline technology that uses 10% less fuel than traditional models.
  • GM, Toyota Kirloskar, and Maruti Suzuki are developing plans to reap the benefits of eco-friendly and efficient gas-based fuels for their cars.

Statistics:

  • CNG and LPG offer almost 50% lower running costs compared to conventional fossil fuels like petrol and diesel.
  • Hyundai Accent's CNG version saw sales growth of an unspecified percentage in cities where CNG is available.
  • Mid-size cars saw a 3% year-on-year decline in sales during April and May, with only 36,410 cars sold.
  • Skoda Auto's Greenline technology uses 10% less fuel than traditional models.

Sources:

  • ET article featuring IV Rao, head of R&D at Maruti Suzuki.
  • ET article featuring a Skoda Auto official.
  • ET article featuring a Toyota Kirloskar executive.
  • ET article featuring P Balendra, GM's vice-president for corporate affairs.
  • ET article featuring a Hyundai Motor India executive.
  • A report on the National Hybrid Propulsion Programme of the government.