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Why is Bajaj betting on CNG while everyone else is focused on EVs?: Business Case Study
The Indian government has been extremely bullish on alternative sources of petrol and diesel for a long time now!! Especially Nitin Gadkari!!
And as Mr Nitin Gadkari constantly points out, crude oil prices keep fluctuating with geopolitical tensions, they are bleeding our foreign exchange reserves, and most importantly, they emit 12% of India’s carbon emission!! And this is again causing both pollution and global warming!
But this is where Nitin Gadkari started the next big fuel revolution in India!! And his vision is so optimistic that he says, India will not just stop imports but we will go to become an exporter of Fuel to the world!! 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 are 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 points towards a million dollar business opportunity!!
Infact, if you look at market reports, the share of CNG powered vehicles has been going up from 3.5% of passenger vehicle sales in 2019 to 11% in 2022!! and it’s expected to grow to 18% in the next 5 years!!
And, you know what, Bajaj Auto and Maruti Suzuki have done such an incredible job that today, they have a market share of 79% and 75% respectively!! And this market is booming so fast, that Maruti has increased its cng sales by 4 times in the last 6 years. Tata motors wants to make the CNG sales equal to EVs!!! And recently if you saw the news, Bajaj Auto is going to release the World’s first CNG powered bike in India!!
So ladies and gentlemen, we are witnessing not 1 not 2 but 3 automobile revolutions together, which are EVs, Hydrogen and now the CNG revolution.
So, in today’s case study, let’s deep dive and understand
Why is CNG considered to be the next game changing fuel for India?
What has bajaj auto done to be 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?