Tata Motors to start production of CNG vehicles.

Automobile major Tata Motors of India has announced that from next year they will dive into the CNG fuelled passenger vehicle segment. A few of the company's models will be offered with CNG fuel system installed in the factory. At present, Tata Motors provides an option to get the CNG kits fitted in some of its dealerships. The move assumes significance in the light of high transportation fuel prices, which have spiked recently, and for the call for cleaner vehicles.

Shailesh Chandra, President, Passenger Vehicle Business Unit, Tata Motors, said that OEM CNG options of some models will be introduced in the current fiscal year.

"Currently, we have a comprehensive passenger vehicle portfolio with ICE and EV options for customers to choose from. Our customers also have the option to get the CNG kits fitted at the dealerships. In FY22, our customers will also get a factory CNG option for some of our models," Chandra said.

On the current sales growth, Chandra cited new launches as well as continued financing support with attractive interest rates as the main factors for month-on-month rise in demand.

"Movement of people within the city and intercity has started. However, owing to limited public transport options and concerns over travel in available public transport options on account of the Covid-19 pandemic, reliance on private transport is expected to increase, giving boost to the demand for the vehicles. We are also seeing good traction from the rural sector owing to good Rabi harvest post the festive season," Chandra said.

Besides, he pointed out the improving indicators which show a slow but sure move towards a more sustainable demand trajectory.

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