Hi everybody the Indian government has been extremely bullish on Alternate sources of petrol and diesel for a long time now especially green fuel electric vehicles ethanol green hydrogen pollution free or indigenous crude oil prices keep fluctuating with geopolitical tensions they are bleeding.
Our foreign exchange reserves and most importantly they emit 12% of India’s energy related carbon emissions and this is again causing both pollution and global warming but this is where nitin gari catalyzed the next big fuel revolution in India and he is so optimistic about this Vision that he says that India will not just decrease.
Its Imports but it will also go on to become an exporter of fuel to theu buses steel chemicals and one of the most important instruments of this massive Revolution is a fuel that we all know as compressed natural gas or CNG now if you’re a think school student.
You know what this means right what is the government the government is the Godfather of the market and if the Godfather is bullish on something then it is pointing towards a million dooll business opportunity in fact if you look at the market reports the share of CG powered vehicles has been increasing from 3.5% of passenger vehicle sales in.
2019 to 11% in 2022 and it is expected to grow to 18% in the next 5 years and you know what Bajaj Auto and maruti Suzuki they’ve done such an incredible job that today they have a market share of 79% and 75% respectively and this Market is moving so fast that maruti has increased its CG sales by four times in the last 6 years Tata Motors once to.
Make CNG sales equal to the EV sales and recently if you saw Bajaj Auto is going to launch the world’s first CG power motorcycle in India over the last few quarters the company has said that it would like to build a portfolio of CG motorcycles for every motorcycle you’d like to have a CNG vertical as well within this calendar year 24 in the very.
Near future I think you will see us announce the world’s first CNG motorcycle so ladies and gentlemen we are witnessing not one not two but three automobile revolutions together which are EES hydrogen and now the CNG Revolution so in today’s case study let’s Deep dive and try to understand why is CG considered to be the next.
Gamechanging fuel for India what has baj Auto done so remarkable that it has now become the market leader in this space what is the Indian government doing to boost the CNG industry in India and lastly for people like you and me what are the new opportunities in this growing Market of CG.
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Link in my description and you must hurry because this free scan is only available for the first thousand individuals Cho let’s start from the basics and understand what exactly is CNG and how is it different from other fuels people CNG is nothing but compressed natural gas and it is extracted from the surface.
Of Earth just like Petroleum in fact it is even found near the oil wells this gas is then compressed to 1% of its volume at standard atmospheric pressure and then it is packed in cylinders these cylinders are the cylinders that you see in our cars and Ras now the reason why CG is special is because it has three major superpowers firstly CNG is an.
Environmentally friendly fuel so when an IC vehicle runs on petrol it releases various pollutin like nitrogen oxide and carbon monoxide all these gases contribute to the greenhouse effect whereas when CNG Burns it majorly releases only carbon dioxide and water vapor and this CO2 emission is 10% lower than diesel engines and 25% lower than.
Petrol engines second for every kilo of CG it provides the same mileage or perhaps more as compared to petrol so for every kg of CG while a maruti Alto 800 can run for 31.5 km with a kg of petrol it can run for 28.668150 see that is a 45% decrease in cost of running and same is the case with cars also if you drive a hybrid.
Maruti Alo and travel 2,000 km in a month with a petrol cost of 10 16.31% L and 9,642 rupees in fuel cost whereas with CG with a mileage of 31.5 n km per kg it would cost you 63.3 1 kgs and just 48115 6 rupees so CNG is almost 50% cheaper than petrol and if a middle class family uses a CG vehicle instead.
Of a petrol vehicle it can practically save 50,000 Rupees every single year but you know what guys in spite of all these benefits until 1998 CNG was somehow not seen as an alternate fuel at all and this is when in 1998 the Supreme Court of India made a major decision by by ordering the government of Delhi to implement CNG or LPG fuel for all autos.
And for its entire bus fleet so this is where India’s CNG Revolution started now you have seen me constantly say that the government is the Godfather of the market right so you as an entrepreneur need to understand the foresight of The Godfather so that you can go on to build a million dooll business and you know what Bajaj Auto is a classic example of.
Using this foresight to build a million doll business because they built a legendary business and left their competition far far behind simply because of the understanding of this forsite so the question is how did Bajaj Auto do this and what can we learn from Bajaj Auto well as it turns out after the supreme court order in 1998 many.
Companies ignored CNG and they thought CNG will not be a big deal at all but this is where baj Auto did something absolutely magical back then Bajaj Auto had been producing Ras for 40 long years and after 1998 they came up and said if the government is bullish then we need to be bullish about CNG to during this time their three wheelers were running.
On petrol and they just begun diesel in 1997 but even then they made a sudden shift and started working very hard to produce the first cngg Auto Ria in India and in just one year that is in 1999 Bajaj Auto launched their first CNG three-wheeler in India and you know what guys they were so early in this game that by the time Mahindra and TVs.
Entered the CNG Market it was already 2001 until Mahindra Steed in and 2008 until TVs Steed in so by the time their competition hit the market Bajaj was already 2 years and 9 years into the market respectively and if you look at how much this first more Advantage helped them you will know the importance of understanding government policies in.
2024 while 67% Auto Ras ran on CNG baj Auto alone I repeat baj Auto alone had a market share of 79% so Bajaj alone sold four times more Autos than their next 10 competitors combined while baj Auto sold 1.92 lakh CG three-wheelers in f23 its remaining competitors did sales of just 4838 units in total this is because.
Apart from the first more advantage over the years Bajaj developed better technical expertise they established better relationships with the vendors and they also built a super strong distribution Network to give you an example of the scale baj Auto has around 1,700 three-wheeler dealerships and authorized service centers all across.
The country and the second competitor in terms of this network is piu and they have 35% lesser Network footprint than baj Auto so this is how by understanding the foresight of the government baj Auto won the CNG three-wheeler Market in India now if you look at the CNG run four-wheeler Market of India there is again a a classic example look at this.
Chart the sales of CG three-wheelers was 2.41 lakh units in fi23 whereas for CG four-wheelers the sales was 32% more at 3.18 lakh units so even though CG cars were launched 11 years after rias the CNG car market is now growing faster than the three-wheeler Market this is both because the four-wheeler Market is much bigger and the adoption by the.
Middle class was very very quick this is the reason why if you compare the CG penetration in the total Market of four-wheelers the penetration is still very low at only 11% so this means there is still a huge scope for CG vehicles and CG infrastructure in the four-wheeler Market of India and you know who’s the king of the CG Market in.
The four-wheeler segment not so surprisingly it is none other than maruti Suzuki and they have a 75% market share this is the reason why both tataa and Hyundai they are very aggressively expanded in their CNG portfolio in fact Tata Motors is so bullish that they want to make the CG penetration equal to the EVs and by 2030 they wish to achieve 25%.
Market share in the CG market now another reason why the CG Market is growing so fast is also because of the retrofitting Services Market in India in simple words instead of buying a CG car you can get a CG cylinder fit in your petrol car and use both petrol and CG so by investing 50,000 rupes a middle class family can save 50,000 Rupees every.
Single year so you see this entire retrofitting Market is creating a win win win situation for all customers who are fed up with high cost have a cheaper option after retrofitting there is a drastic boost in customers confidence this boost in confidence is allowing automakers to invest in R&D and eventually the government is benefiting.
With less inputs so this is the trajectory of the three-wheeler and four-wheeler Market of CG and like we saw this month baj Auto took it to the next level with the promise of taking CG into the two-wheeler Market of India now the reason why this announcement is a very big deal is because this release of the CG motorcycle could disrupt the.
Motorcycle sector of India for three reasons firstly its carbon emissions will be far lesser in spite of having the same top speed as the gasoline counterparts secondly the cost of running the CG motorcycle is about 0.77 rupes per kilm as compared to around 1.5 to 1.6 rupes per Kil for petrol motorcycles and thirdly the CG.
Motorcycle can travel about 101.8 km on 1 kg of CG and this is an extraordinary mileage so not only is the fuel cheaper it is also better for the environment and considering the zero emission Target of the government this is a sector which will be pushed heavily by the government because of which it will become much easier for customers to.
Buy a CG bike and the companies to manufacture and sell CG bikes in India just like it happened for the EV market so long story short just like baj disrupted the three-wheeler Market in 1999 it is aiming to disrupt the two-wheeler Market in the next 5 years but now the question over here is baj auto is a large company right so they.
Can capitalize on this wave very easily but what can people like you and me do to benefit from this CNG wave well for that you need to have a look at this chart in 2022 out of the 25 lakh petrol passenger vehicles which which were sold only 4.2 lakh were CG Vehicles now I don’t know if you noticed this but this is a very rare site in India because a.
Product like CG vehicle is much more economical as compared to a petrol vehicle and yet it is somehow not sold as much as petrol cars so if you see in spite of India being a price sensitive Market a product that is more cost efficient is selling less and you know why this is this is because India lacks the CNG infrastructure if if you see the.
Number of petrol and diesel stations there are a total of 67,8 45 stations in the country but if you look at the number of CG stations we have just 6,088 stations now I don’t know how many of you have seen this but then back in Pune I have seen long lines of Ras waiting at the CG stations and it is absolutely ridiculous because they sometimes have.
To wait for 3 to 4 hours so this is happening because of an overflooding demand for CG stations all across the country this is the reason why the government has set up an aggressive Target to ramp up the number of CG fueling stations from 688 to 17,700 stations by 2030 so if you want to set up a CNG station there is a big.
Opportunity so do visit your State’s website for CNG dealership or land leasing secondly in September 2018 the Indian Ministry of Transport announced that electric vehicles and CG Vehicles will no longer require permits to operate on roads these permits are for commercial vehicles and also include Goods carriers permit and cap permit so.
If you start a fleet with CNG Vehicles there is a good opportunity for initiation and lastly the world’s first ever CG terminal will be set up in bav nagar in Gujarat by 2026 this is essentially a place that stores compresses and distributes only CG so as these terminals are being built across the country the scope and ease of.
CNG stations will vastly increase in the next 5 years so these are the opportunities that are on the rise because of the evolution of the CNG Market in India and if you know more such opportunities please drop a comment and let the community know about the same this is the story of CG in India its biggest players the government.
Policies and the opportunities that lie at your disposal and if I find more such opportunities in this space I will attach it in the description and Before We Say Goodbye do not forget to visit the tootsie website or download the tootsie app to get your free invisible teeth aligners and book your free teth scan through the link in my description.
That’s all from my S today guys if you learn something viable please make sure to hit the like button in ut to make you baba happy and for more such insightful business and political case studies please subscribe to our Channel thank you so much for watching I will see you in the next one.
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