A CNG vehicle is a type of natural gas vehicle which uses compressed natural gas as a fuel. This is so because compressed natural gas is a cleaner alternative to other fossil fuels and thus helps in saving the environment.
The Market Of CNG Vehicles At A Global level is growing at a rapid rate. It is expected to continue witnessing this growth in the upcoming years as well subject to the market driving factors influencing the growth of the market industry of CNG vehicles.
Studies reveal that the CNG vehicles market is predicted to grow at a compound annual growth rate of about 5% in the upcoming about five years by 2022.
The factors fuelling its market growth are-
- CNG is a clean fuel thereby is good for environment’s health and is therefore largely promoted for being used in vehicles, increasing the market growth of CNG vehicles.
- Prices of CNG as compared to other fuels used in vehicles are relatively very less. It costs 25% less than that the diesel costs and not just this it costs half as much as the petrol does. Thereby because of its ability of being price efficient it is demanded at large in a country like India which is cost centric. This helps in rising the market growth as with time more people are going to adopt CNG vehicles.
- Delhi government, a few years ago came up with the odd-even scheme in order to curb the rising pollution levels of the country and controlling the risks associated with it. Under this the Delhi residents used their vehicles on alternative days according to their respective registration numbers. This rule also helped in promoting the growth of CNG vehicles, because this rule was an exception for the CNG vehicle holders subject to the fact that compressed natural gas is an eco friendly fuel and does not cause pollution.
- CNG is not just being used in normal vehicles, but is also taken into account for being used in luxury vehicles too. The very reputed auto motives company Audi, has come up with a car which is compatible to run on compressed natural gas. Audi’s a4 Avant g-tron has the capacity to be drove 100 kilometres in 3.8 kg of CNG. This helped in rising growth of the market industry of CNG Vehicles at a global level even more.
India with around sixty to seventy thousand CNG vehicles in it, makes up one of the largest and major markets of CNG vehicles at a global level.It can thereby be concluded that with the growing concern of countries towards environment and controlling pollution to make the environment safe for living a healthy life, the demand and growth of CNG vehicles market is expected to reach great heights in the near future.