Hyundai, GM, Mahindra plan to launch gas variants
December 5, 2008 11:21 AM
General Motors India (GMI), for instance, is planning LPG
(liquefied petroleum gas) and CNG (compressed natural gas) options for
all its models in India.
"We are launching alternative fuel variants for all models soon,
though it is difficult for me to say what would come first, LPG or
CNG," Mr P. Balendran, Vice-President (Corporate Affairs), GMI, told Business Line.
The CNG variant of the Chevrolet Optra is already being offered in
Mumbai, Delhi and Vadodara, largely due to the fact that the fuel is
available in these cities.
Hyundai, likewise, is coming out with CNG and LPG versions of the
Getz early next year. "The LPG variant will come first," official
sources said. The company already has LPG/CNG versions of the Santro
and a CNG version of Accent.
Mahindra-Renault recently began despatching the CNG version of
Logan for the taxi market, especially in Mumbai where they are part of
the local Meru fleet. "We sold around 1,200 units in last the few
months," Mr Nalin Mehta, Chief Executive Officer, said.
Cost analysis
CNG, which costs about one-third of petrol, and LPG, which is
priced around Rs 15 less than petrol, are considered to be greener and
more economical alternatives for conventional automotive fuels. The
initial additional cost for the gas-run variants and the inadequacy in
terms of the network of gas dispensing stations are cited as major
deterrents to the commercial prospects of CNG and LPG-variants.
The gas variants of different car models will cost Rs 35,000 to
Rs 50,000 more than the base variants. However, the substantial gains
in operating cost, especially for those who drive more than 20-25 km
daily, will compensate for the extra expenditure, according to experts.
According to the industry estimates, there are more than 5 lakh
LPG-run vehicles on street, while the number of CNG-run vehicles would
be more than 3.5 lakh.
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