Odd-even plan boosts demand for CNG kits in Delhi-NCR

January 8, 2016

( ) The Delhi government’s experimental odd-even vehicle rationing rule has had an unexpected spin-off, sharply boosting demand for CNG kits in the aftermarket. Manufacturers and distributors of CNG kits in the national capital region say they have recorded a 25-30% increase in demand in the past 10 days. While the CNG kits are traditionally fitted on small cars from Maruti SuzukiBSE 0.20 %, Hyundai and Honda ??mainly because CNG is cheaper than other motor fuels ??some are now retrofitting them on luxury vehicles such as Mercedes-Benz and BMW as well. 
The experimental odd-even rule is in place until January 15, but many believe the early success of it could encourage the Delhi government to consider making it permanent at some point of time. CNG-powered vehicles are currently exempted from the rule, and that is driving the demand for the kits, said industry executives. With authorities looking to discourage people from buying diesel-run vehicles, and implementation of the odd-even rule with exemption on CNG vehicles, demand for new CNG vehicles could also go up. In the aftermarket, CNG kits are retrofitted mostly in petrol vehicles as diesel-to-CNG conversion requires major modifications to the engine. Though there is no official estimate on the exact volume of CNG cars, industry sources indicate 8-9% of vehicles in the domestic market run on this fuel.

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