Why Tata Motors is keen to launch hatchbacks and sedans with CNG, but not SUVs?

Tata Motors is aiming at greater penetration of CNG variants with more hatchbacks and sedans with greener fuel variants, hints Tata Motors President Passenger Vehicle and Electric Vehicles Shailesh Chandra. The auto company is aiming at a greater market share in the CNG segment with more models.

However, the homegrown automaker is not planning to introduce CNG in the SUV segment, where it has a stronghold. Chandra said that in the SUV segment, CNG variants might struggle as they are a very performance-oriented segment and less sensitive to running costs. "Given the price points and the economics of CNG versus petrol, it might play out to some extent, but not as deep penetration as we are seeing in the entry segments," Chandra said.

For the expansion of the CNG lineup, Tata Motors is also focusing on compact sedans. Chandra said that compact sedans are doing well because of the boot space they offer, which is completely compromised on hatchbacks. "We would target a few more segments. We're working on them. But as of now, we have really focused on the hotspot of CNG, which is compact sedan and hatches," Chandra said while talking about the automaker's CNG lineup expansion strategy.

Meanwhile, the automaker is also aiming at 85 per cent biofuel mix in petrol, hinted Chandra. He said that the auto company's first milestone is to meet the E20 target in 2025. He said that Tata Motors is already on track for that. He further said that the OEM is in talks with MoRTH on implementation of flex-fuel beyond the 20 per cent mixture ratio, going up to 85 per cent.

“There is an ongoing discussion with MoRTH on implementation of flex-fuel beyond this ratio, going up to 85 per cent also. There is a discussion on the timeline for that," Chandra further said.