Bajaj Auto's Rakesh Sharma talks about CNG in two wheelers and more

Bajaj Auto, the country’s largest three-wheeler maker, has mastered the CNG powertrain in the last mile space. It now plans to leverage multiple alternative powertrains to address the cost challenge faced by the customers and emissions challenge faced by the country.

In an interview with our sister publication, Autocar Professional, Rakesh Sharma, ED of Bajaj Auto, speaks about the virtues of Compressed Natural Gas, how it can be further democratised and how the government can help in promoting this cleaner fuel.

In your assessment, how do you see CNG as an alternative in the coming decade, and what are the prospects and challenges in expansion of CNG as a critical bridge towards zero emissions?

Foremost, while CNG is a cleaner fuel than diesel because of negligible particulate matter emissions, it is not a zero-emission fuel. Most likely the country’s progress towards lower emission fuels, self-dependency and reduction in forex outflow will be driven by a combination of options like CNG, CBG, ethanol blending and EVs. To that extent, we are fortunate as a country to have all these options open to us. However, each one of those options requires long-range thinking, co-option of users and the building of an ecosystem. For example, in CNG, it is not just about pumps but also about a much bigger network of certifying agencies to ensure high safety standards.

What is your view on the government's role in popularising CNG as an alternative and what steps should the government take in accelerating CNG vehicle penetration? 

Indeed, the Government of India through the MoPNG has played a pivotal role over the decades to develop CNG as a credible option for multiple uses, including transportation. CNG pumps and sub-stations have come up with remarkable speed and have been instrumental in shifting users from diesel to CNG. Almost 5,000 pumps now cover 47 percent of our districts and the Government of India has a stated objective of doubling this network, which will make CNG very widely available.

What is your assessment on penetration of CNG fuel in the two-wheeler, three-wheeler, quadricycle segment in the coming decade? 

Currently, almost 60 percent of ICE 3Ws are CNG powered. Both quadricycles and 2Ws can also be powered by CNG. As the CNG network expands and CNG becomes easily as well as widely available, more and more vehicles can shift to CNG. Manufacturers like us will also get encouraged to develop all types of vehicles, which use CNG as a fuel. This becomes a unique opportunity where all stakeholders – the government, consumers, society at large and the manufacturers stand to win!

Therefore, a strong case can be made for reduction of GST for CNG-based vehicles, which will hasten adoption and the development of newer vehicles.

Can you share your view on the customer's behaviour in each of the segments and how can customers find value in CNG as an alternative?

Consumer behaviour is driven by economic reasons. CNG offers at least 10 percent better operating efficiency than diesel besides being a cleaner fuel. For commercial users this operating advantage is sizeable and that is why we see a wholesale shift from diesel to CNG wherever the network is put in place. 

What is Bajaj Auto's aspiration to grow in this critical bridge for the future?

We have been closely aligned to this infrastructure development and over the years have invested in building very good three-wheeler products based on CNG. These have been received very well by customers, who have rewarded us with an 80 percent or so market share in the three-wheeler segment. Looking at the government’s commitment to expand usage of CNG, we are developing other vehicle options too. We intend to remain in the forefront of this development.