Introduction
In the pursuit of sustainable and environmentally conscious transportation solutions, Rakesh Sharma the executive director of Bajaj Auto underscores the potential of Compressed Natural Gas (CNG) as a cleaner and more efficient alternative to diesel. As the focus on environmentally friendly fuels grows, compressed natural gas (CNG) which has low particulate matter emissions appears to be a feasible alternative.
Bajaj Auto's Strategic Focus
Bajaj Auto is strategically addressing both cost challenges faced by consumers and the pressing issue of carbon emissions in the country by prioritizing the development and promotion of CNG powertrains. Sharma in an enlightening interview, sheds light on the inherent benefits of CNG and advocates for its widespread adoption.
Advocating for GST Reduction
Sharma asserts that a reduction in the Goods and Services Tax (GST) for CNG vehicles could serve as a catalyst for accelerated adoption. Lower GST rates both make CNG vehicles more accessible to the general public and encourage Original Equipment Manufacturers (OEMs) to invest in the development of cutting-edge CNG-powered products.
Comprehensive Approach to Alternative Fuels
Recognizing the multifaceted nature of India's energy landscape, Sharma envisions a comprehensive strategy that combines CNG with other alternatives such as ethanol blending and electric vehicles (EVs). He highlights that the effective integration of various solutions requires long-term planning, user collaboration, and ecosystem growth.
Government's Pivotal Role and CNG Infrastructure Development
Sharma commends the Ministry of Petroleum and Natural Gas for their crucial role in promoting the legitimacy of CNG as a fuel for transportation. The government's dedication to developing a strong CNG infrastructure is demonstrated by the quick installation of CNG pumps around the country, which now cover 47% of districts. Plans to double this network aim to make CNG widely available, particularly benefiting two-wheelers, three-wheelers, and quadricycles.
CNG Adoption in Various Vehicle Segments
Sharma sees a big shift towards CNG in many vehicle classes as the CNG network grows. Currently, CNG powers over 60% of India's ICE (internal combustion engine) three-wheelers. The availability of CNG will incentivize Original Equipment Manufacturers (OEMs), such as Bajaj Auto to create a variety of CNG-powered automobiles creating a situation that benefits all parties involved.
Proposal for GST Reduction and Collective Benefits
Sharma strongly advocates for a reduction in GST for CNG-based vehicles, presenting a compelling case wherein the government, consumers, society, and OEMs all stand to gain. Reduced GST rates would encourage the development of new automobiles and apps speeding up the use of CNG and enhancing the sustainability of the transportation sector's ecosystem.
Consumer Behavior and Economic Considerations
Examining consumer behavior, Sharma highlights the economic drivers influencing choices. CNG, offering at least 10 percent better operating efficiencies than diesel, becomes an attractive proposition for commercial users. This economic advantage propels a substantial shift from diesel to CNG wherever the infrastructure is in place.
Bajaj Auto's Market Share and Forward-looking Strategies
Bajaj Auto's proactive involvement in infrastructure development has resulted in the creation of high-quality CNG three-wheeler products. Garnering an impressive 80 percent market share in the CNG segment, Bajaj Auto aims to maintain its leadership position. The company is actively developing a range of vehicle alternatives in line with the government's commitment to increasing the use of compressed natural gas (CNG). This ensures the company's sustained prominence in the expansion of CNG as a vital and sustainable fuel alternative.