The Hindu Business Line : LPG vehicles may have an easy ride

Mumbai, June 4 The Petroleum Ministry’s decision to hike the oil price will not have any particular impact on a section of automobile users — the owners of LPG-run vehicles.

The price of auto-LPG in the country is not subsidised by the Government and is being governed by international prices, said Mr Suyash Gupta, General, Indian Auto LPG Coalition (IAC), industry body of auto-LPG suppliers.

Although the auto-LPG, is not being subsidised, its price/litre remains about Rs 15 lesser than petrol, while it is almost equal to or a little less than that of diesel in many Indian cities. The auto-LPG users are still in an advantageous position due to the substantial gain in running cost resulting from better fuel efficiency. The running cost is cut down up to 60 per cent, says the IAC Web Site.

According to the industry estimate, the number of authorised LPG kit-fitted vehicles in the country grew to 5 lakh as on March 31, 2008. According to the latest figure available with the IAC, the auto-LPG consumption in the country surged to 2,75,000 tonnes in the last fiscal against 2,00,000 tonnes in the previous year. The network of auto-LPG filling stations grew to 560, covering more than 250 cities.

“The non-availability of LPG is no more a reason for not shifting to the alternative fuel. The network of auto-LPG filling stations has expanded into non-metro centres and small towns across the country,” said Mr Gupta.

Manufacturers enthused

The growth in auto-LPG seems to have enthused automobile manufacturers. All major vehicle makers have plans for coming out with more factory-fitted LPG-run vehicles. Currently, 50,000 vehicles have factory-fitted LPG kits while the number of retrofitted vehicles is nine times higher.

After the success of LPG-run Omni and Wagon-R Duo, Maruti Suzuki is launching the LPG version of M800 this month. Hyundai will launch LPG-Santro and Accent, while planning to launch an LPG variant of i10 next year. “The fuel price hike has dampened the automobile market. Within that, alternative fuel-run vehicles will have certain demand. We hope that the launch of LPG variants of Santro and Accent would help us overcome part of this crisis,” said Mr Arvind Saxena, Senior Vice-President, Hyundai Motors India.

Tata Motors launched LPG-Indica a fortnight ago. Bajaj has announced that other than the LPG-run Platina, the company would launch one more gas-run motorbike this year. The company produces LPG-run three-wheelers. LPG variant of Mahindra-Renault Logan will also hit the market soon.

“The success of Wagon R Duo has proved that there is a huge market for vehicles fitted with LPG kits. As LPG becomes more available we are sure to see more OEM’s launching their LPG variants. Rising cost of fuel is another factor. We could see as much as 10 per cent of all new cars coming fitted with LPG/CNG fuel systems in the next three-five years,” said Mr N.K. Minda, Managing Director of Minda Auto Gas, the company that provides LPG kits to OEMs including Maruti Suzuki.

More Stories on : Automobiles | Petroleum

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page