Tata Expects CNG and Electric Vehicles to Increase to 20% of Sales in 3-5 Years

IT Home Reported on February 13 that India's Tata Motors is India's largest integrated automobile company, commercial vehicle manufacturer, and seven out of every ten trucks on the road come from Tata.

Shailesh Chandra, president of Tata Motors' Passenger Vehicles Division, said that the contribution of CNG (compressed natural gas) vehicles in the company's total sales is expected to grow to 20% in the next 3-5 years, the target for electric vehicles to 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 sales account for about 66% and 12% respectively.

As a result, he added, the company sees strong prospects in this regard given that the country is undergoing deeper penetration and expansion of its CNG outlets.

"In the next three to five years, gasoline could fall to about 50 percent, and CNG would rise to 20 percent ... Diesel will drop further to about 10 percent, and I would say [for] electric vehicles. . . We have announced that we are aiming to be closer to 20 percent," Chandra said.

He said the company is focusing on hatchbacks and compact sedans to expand the CNG model range.

"I think in SUVs, CNG can be difficult because it's a very performance-focused segment and less sensitive to running costs. So I think CNG in this..."

Asked if the company would consider a hybrid, Chandra said the company had consciously decided to adopt electric vehicles.

"Some of the players already have a place on the hybrid and they have a vehicle available, so they pursue it primarily to meet the requirements of the business average fuel economy (CAFE) ... The way we see this technology is primarily for compliance and its relevance will only continue for years to come," he said.

Chandra said the company's focus on technology not only helps us meet CAFE requirements, but also leads in zero-carbon technologies. "That's why we're consciously calling attention to electric vehicles."