Tata Motors has successfully positioned the Altroz iCNG as a premium offering, which is often lacking in CNG vehicles
Tata Motors has recently introduced the Altroz iCNG, and the company has made significant efforts to enhance the perception and appeal of CNG for potential buyers. They have specifically addressed various limitations associated with CNG such as reduced boot space and limited features. By focusing on improving the features, Tata Motors has successfully positioned the Altroz iCNG as a premium offering, which is often lacking in CNG vehicles. They are strategically introducing CNG options in segments where diesel is on the decline.
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The Altroz and upcoming Punch models offer CNG options, while the Nexon is a likely candidate for Tata’s iCNG treatment due to the discontinuation of its diesel engine in the future. The Harrier and Safari, on the other hand, are less likely to receive CNG variants as diesel still dominates these segments and they offer powerful diesel engines. Tata has showcased a new 1.5-litre turbo-petrol engine for these models and the midsize SUVs, Curvv and Sierra, but it is unclear if they will have CNG options.
“We will introduce CNG in segments where diesel is exiting,” Tata Motors passenger vehicles MD Shailesh Chandra was quoted as saying by Autocar India. Customers perceive both CNG and diesel as cost-effective fuels, although recent price hikes have stabilized the difference, with diesel generally being more expensive.
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The 10-year restriction on diesel cars in Delhi-NCR has also impacted consumer preferences. Diesel engines face emissions regulation challenges, while CNG offers lower emissions and improved CAFÉ (Corporate Average Fuel Economy or Efficiency) scores. Tata Motors has retained the 1.5 diesel engine in the Altroz and Nexon through a cost-effective solution but acknowledges that upcoming requirements may lead to their discontinuation. This temporary advantage positions Tata Motors well in the premium and compact SUV segments.
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Maruti Suzuki has made a significant push in the CNG market, offering CNG variants in most of its models, including the Baleno, Brezza, Ertiga, XL6, and even the Grand Vitara SUV. Toyota also provides CNG options in the Glanza and Urban Cruiser. Hyundai offers CNG in its compact cars like the Grand i10 Nios and Aura, but not in its SUV lineup. Skoda and VW have shown interest in CNG but have not launched any CNG models yet. Mahindra does not currently offer any CNG models.
