Every Third Car Sold Will Be Either Electric or CNG: Tata Motors

Every third car Tata Motors sells near-to midterm will be either CNG or electric-powered, one of the senior executives at Tata Motors said. It's a part of Tata's larger plan to reduce dependency on fossil fuel-powered passenger vehicles.

With the debut of Altroz iCNG, featuring Tata's patented "integrated mounting system for vehicles," and the launch of flagship electric models like Tata Punch EV, this largest automaker aims to increase the market share of gas-powered and electric-powered passenger vehicles to 15% each from 8% and 9% in next three to four years, mentioned Shailesh Chandra, who is managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.

He said that in the next three to four years, the company could see that electric and CNG will contribute 15% of Tata's portfolio. CNG variants of Tiago and Tigor currently contribute 30% to 50% of their aggregate sales figure. Altroz is also expected to follow a similar trend.

Like Maruti Suzuki and Hyundai Motor India, Tata Motors aims to invest big in CNG. The demand for CNG-powered passenger vehicles is increasing because of the improved availability of fuel, lower running costs, and the launch of new and advanced models. Based on registration data, the sales figures of CNG cars increased to 30,000 units in March 2023 from 10,000 in March 2021.

The demand for CNG-powered passenger vehicles is anticipated to grow because of revised gas prices.

Though CNG models offer better fuel economy and lower running costs, they do not invoke aspiration owing to the low-frill nature of the car models available. Generally, these vehicles have lower performance and limited boot space.

Tata Motors has addressed some of the common issues with the launch of iCNG technology, which comes mated with high-end features, and offers more comfort, as customers can see in Tiago and Tigor. Shailesh Chandra also mentioned that the company is taking steps to redefine the CNG market by addressing major concerns about the boot space.

The leading automaker aims to equip its CNG passenger vehicles with dual-cylinder technology under the luggage area, ensuring that twin-cylinders are covered and proper boot space is available for the customers, similar to those seen in fossil-fuel cars.

Tata aims to launch a fully-electric variant of another internal combustion engine (ICE) passenger vehicle by the end of this fiscal year. This upcoming EV could be an electrified version of the company's compact SUV, Tata Punch, and it has been in the news for quite some time.