Global Investment Bank Nomura has said in a recent report released on Thursday that compressed natural gas in India, CNG may continue to grow as an auto fuel, even though the pace of adopting electric vehicles (EV) in major states is also increasing. According to ANI news, Nomura has said in the report that the state governments, especially Delhi and Mumbai, are expected to implement aggressive EV policies to overcome the increasing air pollution problem. Although this may put some pressure on the development of CNG, analysts believe that both fuel types may be present together in the coming years.
What Nomura said about Delhi
According to the news, the report said that CNG may increase as electric vehicles as well as auto fuel. EV policies will continue to have pressure on the growth of CNG from EV policies. Delhi, which banned diesel vehicles over 10 years ago about a decade ago, can now consider banning CNG vehicles as the next step in its clean fuel infection. The state is seen focusing on clean mobility solutions to deal with poor air quality.
This is said about Mumbai
Nomura said for Mumbai that due to being a coastal city, a better air quality index (AQI) levels are usually recorded in Mumbai. In a short time, the focus of EV policy in Mumbai may move more towards reducing the use of liquid fuel like petrol and diesel rather than targeting CNG. The report states that it may be policy -help to adopt CNG and EV in Mumbai.
MGL also said- CNG can benefit
This report of Nomura also mentions that the High Court monitoring committee on adoption of EV in Maharashtra includes participation of Mahanagar Gas Limited (MGL), a major CNG supplier in the region. During the recent Investor Day, MGL’s management expressed confidence that CNG could benefit under the state’s upcoming EV policy. The company sees the possibility in policies that promote multi-fuel infections rather than focusing only on electric vehicles.
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