The use of CNG/LPG kit in the transportation sector is primarily driven by the environmental and public health imperatives. CNG & LPG gas supply and infrastructure costs are generally lower than other alternative non-blended fuels. The cost of bulk CNG & LPG supplied to the service stations is generally lower on an energy-content basis than for gasoline. Rising demand for CNG & LPG gas is not predictable to raise significantly the cost of LPG on the international spot market relative to gasoline given the abundance of supplies. When petrol and diesel costs `72 per litre, and `60 per litre while CNG costs only `45 per kilogram*, it is obvious that vehicle will consider getting a CNG kit and leads to drive market across Indian market.

India Automotive CNG/LPG Kit Market Overview:

CNG is compressed natural gas, mainly compressed by methane at a pressure of 200 to 248 bar. LPG is liquefied petroleum gas, a 15 ° C mixture of liquefied propane with butane, and a 1.7-7.5 bar pressure. Many types of LPG are mainly propane so in colloquial terms, LPG is often referred to as propane. CNG is cheaper and cleaner but LPG is higher in calorific value. While CNG produces greenhouse gases when combusted, it is a safer alternative to other fossil fuels, such as gasoline or LPG. A common addition to both LPG and CNG is ethanethiol or ethyl mercaptan. Mercaptan has a foul, rotten-egg smell that facilitates the detection of gas leaks in case of a spill due to the natural gas, CNG is also safer than other fuels, being lighter than air, disperses rapidly when released. Given that LPG generates more energy than CNG, natural gas can not simply be substituted. Only gases which have the same Wobbe index is interchangeable. For LPG to have the same Wobbe index as CNG, it is mixed with the air. A ratio of 60:40 for LPG: air mixing is common but it depends on the LPG composition because LPG itself is a mixture of propane and butane. This blend of LPG and air to replace natural gas is known as synthetic natural gas (SNG). Use of SNG is common before the CNG distribution network is fully operational.

Growth drivers

The rising number of passenger cars across India

The Indian automotive industry has experienced steady growth in demand for and sales of passenger cars due to improved economic conditions and increased disposable income for consumers. The country has seen a gradual shift towards easy/comfortable transport, from affordable transportation to luxurious and safe transport. With the increasing presence of international car manufacturers and brands in the country and the willingness of consumers to purchase and maintain new cars, consumers have been willing to buy more than one passenger car to meet their different daily needs and travel needs. With around 29 million passenger cars, light commercial vehicles, and medium and heavy commercial vehicles produced, India and China are the top demand generators for CNG & LPG automotive kits.

Low cost of CNG/LPG gas

CNG & LPG gas supply and infrastructure costs are generally lower than other alternative non-blended fuels. The cost of bulk CNG & LPG delivered to service stations is usually more economical in terms of energy content than for gasoline. Rising demand for CNG & LPG gas is not predictable, given the abundance of supplies, to significantly increase the cost of LPG on the international spot market compared to gasoline.
https://www.blueweaveconsulting.com/india-automotive-cng-lpg-kit-market-bwc19420