India's Tata Motors expectSAvs to increase to 20% of sales in both CNG and electric vehicles over the next 3-5 years

The Economic Times of India reported on February 13 that Shailesh Chandra, president of the passenger car business unit of Tata Motors india, said that in the next 3-5 years, the contribution of CNG (compressed natural gas) vehicles in the company's total sales will grow to 20%, the target for electric vehicles will grow to about 20%, while cars using conventional gasoline may fall to about 50%, and diesel vehicles will further decline to about 10%. Diesel vehicles currently account for about 15% of Tata vehicle sales, while gasoline and compressed natural gas account for about 66% and 12% respectively.

Chandra said on an analyst conference call, "As gasoline costs rise, CNG will primarily cannibalize the gasoline market and, to a large extent, the diesel market to replace entry-level diesel." He said Tata Motors is focusing on hatchbacks and compact cars to expand the CNG model range. He also added that CNG may have difficulties in the SUV market because it is a very performance-focused segment and is less sensitive to operating costs, so CNG will not penetrate as deeply as it does in the entry-level market.