In the SCV category, the CNG-powered Super Carry faces competition from the Mahindra Supro and Jeeto, and the CNG version of the market leader Tata Ace. In the pick-up category above it, it is vehicles like the CNGpowered Mahindra Bolero which are finding good acceptance as an alternative fuel CV. Above the pick-up category, which is termed as the LCV segment, there are offerings like the Eicher Pro 2049 CNG, Tata 407 CNG and Tata 709 CNG which are finding acceptance as alternative fuel CVs in the wake of the rising diesel prices. With small, light and intermediate commercial vehicles turning unattractive due to the significant rise in fuel prices, transporters are looking at alternative fuel vehicles powered by LNG and electricity other than CNG to keep costs under control. An industry source mentioned that gaspowered small commercial vehicles have come to account for 40 percent of the total commercial vehicles sales in FY2020-21 as compared to under 10 percent in FY2018-19. He informed that a typical LCV (from sub-one tonne to 7.5-tonne GVW) consumes roughly 1,150 litres of diesel by running about 8,000 km per month, the cost of which is approximately INR 112,000 with a litre of diesel costing about INR 98 per litre in Mumbai. The CNG, in comparison, provides a fair reduction in cost of about 45 to 50 percent as CNG costs approximately INR 52 per kg in Mumbai, he explained. 
 

CNG As An Alternative
Supporting the shift to CNG by commercial operators is the technological advancement. Factory fitted CNG kits on BS VI vehicles are offering better performance, efficiency and reliability. They are presenting peace of mind to the transporter as they get AMC on the entire vehicle and don’t have to worry about the warranty getting void. Sensing a rising level of restlessness among their customers, commercial vehicle manufacturers revisited their CNG strategy. With escalating fuel price, they chalked out plans to develop CNG variants at certain tonnage points. The government announcement to expand CNG network also helped. The fly in the ointment being the geographical bias concerning CNG prices (CNG is cheaper in Delhi NCR than Mumbai or Pune), commercial vehicle manufacturers seem to have tuned their strategies accordingly. With Delhi NCR region toping in CNG vehicle sales, there are regions in the West and South that are lagging for the want of network and in terms of the respective fuel prices. With CNG-powered commercial vehicles in the 3.5-tonne and 15-tonne categories showing good demand, the comment by Vinod Aggarwal, Managing Director and CEO, VE Commercial Vehicles Limited (VECV), that he expects the share (of CNG vehicles) to hover around 25 to 30 percent assumes importance. VECV has the highly successful Eicher Pro 2049 with 5-tonne GVW. It has other CNG-powered BS VI compliant commercial vehicles too in the 5-tonne to 16-tonne space – on the truck side as well as the bus side.
 

Apart from the CNG-powered Jeeto and Supro, Mahindra & Mahindra too is said to be working on rolling out CNG variants of its LCV and ICV range. Shyam Maller, former Executive Vice President – Marketing, Sales and Aftermarket, VECV, and a commercial vehicle industry veteran in India, averred that the significant escalation in the price of diesel vehicles (between 10 to 12 percent in the 5- to 15-tonne category) during the BS VI transition also made them unattractive. The fuel price rise further added to the sentiment. Putting the price escalation in the range of 8 to 17 percent approximately, depending on the segment the vehicle is in, Girish Wagh, Executive Director, Tata Motors, reasoned that this was caused by an increase in the technology content. Regarding the shift to alternative fuel CVs, he informed that the recent diesel price has increased customer focus on the total cost of ownership (TCO). Central to the operation of a commercial vehicle, the cost of urea dosing in vehicles above certain tonnage point has also altered the TCO. With Selective Catalyst Reduction (SCR), the fluid dynamics of BS VI emission complaint commercial vehicles has changed. Add the fluid costs to a series of vehicle price hikes in the last eight months, and the TCO equation concerning diesel-powered commercial vehicles has begun to look unattractive.

Of the opinion that transporters have been under pressure since the rising diesel prices have impacted overall profitability and compelled a rise in freight rates, Wagh mentioned, “As the most significant variable, diesel price, depending on the segment and application, may account for 40-58 percent of the TCO. In percentage terms, it has increased by an estimated 10 percent.” Maller stated that the diesel price is accounting for over 60 percent of the TCO and leading transporters to look at either highly efficient BS VI emission complaint commercial vehicle or the one that is powered by an alternative fuel. In an interview to a leading newspaper, Shamsher Diwan, Vice President, ICRA, is known to have said that the (CNG vehicle) trend in terms of increasing penetration of electric commercial vehicles will play out in the mid-term in the wake of the rising diesel prices and restrictions on polluting vehicles. 

In its earnings call for the first quarter of FY2021-22, Tata Motors mentioned that an improvement in CNG infrastructure had ensured that CNG vehicles are limited to certain pockets in the country. With transporter profitability under pressure, it should not surprise commercial vehicle manufacturers to accelerate work on variants as well as new product-lines in the CNG and EV space. While Wagh revealed that they are continuously working to improve the fuel efficiency of their products, which has helped in partially offsetting the impact of fuel inflation for the customers, Gopal Mahadevan, Director and CFO, Ashok Leyland, said in a recent interaction with Motoring Trends that they are applying thrust on CNG vehicles in the LCV and ICV segments.

Petrol As An alternative
 Launching the petrol version of its SCV Ace in July 2021, Tata Motors stressed on it being the most affordable petrol commercial vehicle in its class. With a GVW of over 1.5-tonne, the vehicle, powered by a 30 hp (22 kW) 694 cc engine mated to a four-speed manual transmission, is priced at INR 400,000. Aimed at last-mile delivery applications much like the petrol version of the Maruti Suzuki Super Carry, it is claimed to have the lowest EMI of INR 7,500 per month. With petrol retailing at roughly INR 108 per litre in Mumbai, the case of petrol Ace or Super Carry is supported by their driveability, refinement and lower maintenance cost over their diesel counterpart. 

Capable of catering to segments like logistics, distribution of fruits, vegetables and agricultural products, beverages and bottles, FMCG and FMCD goods, e-commerce, parcel and courier, furniture, packed LPG cylinders, dairy, pharmaceuticals and food products, perishable ‘refrigerated’ goods and waste management, vehicles like the Ace petrol, according to Wagh, have emerged as an alternative fuel option in the SCV segment. Of the opinion that an improvement in overall fluid efficiency during BS VI transitions along with several features and value enhancement has helped lower the TCO of petrol commercial vehicles, Wagh remarked, “These factors are also helping to achieve faster turnaround and payback.” In addition to the advantage of good pick-up and driveability, faster turnaround time and lower maintenance costs, he stressed on the Ace petrol’s acquisition cost, which is 16 percent lower than that of its diesel counterpart. Mahadevan acknowledged that they are seeing petrol CVs emerging at low tonnage (one to 1.5-tonne) points.
 

LNG as an alternative 
As a low polluting alternative to CNG, LNG could soon become a fuel of choice in long-haul commercial vehicles. Receiving a push from the Ministry of Petroleum and Natural Gas, which has outlined a USD 60 billion investment to create gas infrastructure in the country till 2024, LNG is expected to rise in terms of energy mix from the current 6 percent to 15 percent by 2030, according to Maller. As per a study, the liquefied gaseous fuel could be used by at least 10 percent of the 10 million truckers in India. Likely to cost 30 to 40 percent cheaper than fossil fuels, LNG could open up a big retro-fitment market for commercial vehicles as well. It could give rise to an industry manufacturing cryogenic cylinders among other LNG system components. Suitable to power heavy construction and mining equipment like 100-tonne class dump trucks and large excavators as well, LNG as an alternative fuel offers an advantage of higher energy density as compared to CNG. In the case of trucks or buses, the LNG-powered ones could do 600 to 800 km on a full tank.
 

Drawing attention to an investment earmarked in the region of INR 100 billion over the next three years to create LNG infrastructure for long-haul commercial vehicles, Maller averred, “The setting up of 1,000 LNG stations is planned. Of these, some 150 such fuel stations are expected to come up on the golden quadrilateral at an interval of 200 km.” “The first LNG station among those earmarked has already been set up at Nagpur in July 2021,” he added. Retailing LNG at INR 62 per kg, the pump is claimed to be operated by the Indian Oil Corporation. The Indian oil marketing major has obtained several licences in recent years for the building of such facilities. GAIL (India) is also in talks with ExxonMobil and Mitsui, which could potentially partner as LNG suppliers as well as financiers for the initial lot of LNG trucks that would run in India. Stressing on the fact that a CNG ICV-class of trucks could today do Mumbai to Bangalore or vice versa with ease, courtesy the strategically located CNG pumps, an industry source informed that LNG vehicles could manage longer intervals between refills. They could match the range of diesel, he added.
 

Electricity as an alternative 
As per the Phase II of Fame II scheme, it is the electric three-wheelers that are poised to benefit the most as commercial vehicles. Overlook the fragmented nature of the business, and there is a big market for last-mile transportation in terms of shared mobility that is opening up. Attracting the participation of organised players like Mahindra Electric and Piaggio India, and regional players like Hykon and KAL, electricity as an alternative fuel is coming of age. Powering passenger and cargo three-wheelers, it is also driving a shift at the level of buses. Trucks are expected to follow. Promising lower overall TCO despite the higher initial acquisition cost, electricity as an alternative fuel is growing on the premise of reaching parity with fossil fuel-powered vehicles in the next half a decade as battery prices fall. 

With corporates and e-commerce players looking at reducing their carbon footprint, electric commercial vehicles are already enticing interest in terms of cargo carriage at certain tonnage points. On the passenger carrier side, it is the buses that are rising in numbers across the country, courtesy a governmental push and a favourable PPP operating model. If the rollout of 40 Ashok Leyland e-buses at Chandigarh would highlight this, some 93 Tata Starbus e-buses are operating in Kolkata. Mahadevan averred, “We are watching EVs catch up at the local point of use on the encouragement of the government. It is more on the bus side, but trucks will soon catch up.” Maller remarked, “As of April 2021, over 1,100 electric buses are on the roads out of the nearly 5,595 buses. The FAME II with an outlay of INR 100 billion for a period of three years commencing from 1 April 2019 is set to incentivise demand creation for xEVs in the country. This phase aims to generate demand by way of supporting 7,000 electric buses, 500,000 three-wheelers, 55,000 four-wheeler passenger cars and 1 million two-wheelers.”
 

ssues concerning vehicle cost (including TCO), battery life and range, charging infrastructure, finance availability and impact on payload are some of the challenges that will have to be addressed. A reasonably well-thought through estimate is that EV growth as far as commercial vehicles are involved, will be bottom-up. It will begin with SCVs and move up the tonnage points, said Maller. He added that this will be backed by fiscal incentives and governed by falling battery prices. The feasibility of battery electric vehicles for commercial use, explained Maller, is expected to elevate only after the battery pack cost per kWh goes down. A good threshold would be about USD 100.
 

Considering the amount of distance to be covered, new experiments concerning electric vehicles in Europe are opening up new electrification possibilities. An agreement between truck majors Volvo-Daimler-Traton (the Group that owns Scania and MAN) leading to a collective investment of Euro 500 million to install and operate at least 1,700 high-performance green energy charging points close to highways as well as at logistic and destination points within five years from the establishment of the JV is one of them. The objective of the JV is to deliver CO2-neutral transport solutions to achieve climate neutrality by 2050.

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The Federation of Automobile Dealers Associations (FADA) has successfully wrapped up the third edition of Vyapar Delhi alongside the 22nd national Vyapar conclave at Le Méridien in New Delhi. Centred on the theme ‘Vyapar Delhi – Badalti Dilli’, the event gathered over 200 automobile dealers, senior policymakers, original equipment manufacturer leaders, financial institutions, and domain experts. Their goal was to deliberate on the future of automotive retail and mobility within the National Capital Region.

The event was honoured by the presence of Rekha Gupta, Chief Minister of the Government of NCT of Delhi, as the chief guest. Key policy discussions tackled pressing dealer challenges, including the draft Delhi Electric Vehicle Policy, the vehicle scrappage policy, the Municipal Corporation of Delhi’s classification of workshops as industrial versus commercial and the long-pending compensation cess issue. A dedicated technical session offered legal clarity on the cess and a path forward to protect dealers’ legitimate financial credits.

A major highlight was the panel discussion titled ‘Badalti Dilli: Reimagining Passenger Mobility in India’s Capital’, featuring senior leaders from JSW Motors, Volvo Car India, Honda Cars India, BYD India and Nissan Motor India. They explored changing consumer expectations, electrification pathways, product strategy and dealers’ role as critical enablers of India’s mobility transition. Additional sessions covered artificial intelligence-led dealership transformation, future-ready retail practices, and presentations from finance and technology partners.

Road safety remained a strong undercurrent throughout the day, with FADA reaffirming its commitment to helmet and seatbelt awareness, responsible driving behaviour and first response training including CPR at dealership levels. Vyapar Delhi 2026 ultimately reaffirmed FADA’s role as a constructive stakeholder in shaping policy, supporting environmental goals, strengthening road safety outcomes and safeguarding livelihoods.

The Chief Minister said, "We are committed to the mission of a 'Clean Delhi, Green Delhi, and Smart Delhi.' Our government has introduced the country’s most comprehensive EV Policy, allocating INR 40 billion over the next four years to provide subsidies, tax waivers and scrapping incentives that drive us toward green mobility. To tackle pollution at its source, we are revolutionising our transportation sector through massive investments, for the Metro and the establishment of automated fitness centres to ensure every vehicle on our roads is fit and emission-free. A 'Viksit Bharat' by 2047 is only possible with a 'Viksit Delhi.' I call upon our automobile dealers to act as the government's 'working hands' in motivating citizens to shift to clean energy. We are streamlining our policies to make registration easier and more efficient, ensuring that the people of Delhi have a world-class, environment-friendly experience right here in the capital. Together, we will transform Delhi into a city that defines the future of sustainable urban living."

Reiterating FADA’s continued engagement with policymakers, leadership development through FADA Academy, GenX and Women in FADA, as well as sustained legal efforts on the Compensation Cess matter, C S Vigneshwar, President, FADA, said, “Delhi is in motion, not just on its roads, but in its ambition, and at FADA, we believe automobile dealers must be full partners in this transformation. While we fully support the city’s commitment to a greener future and the Draft EV Policy, it is vital that this transition includes the 17,500 trained professionals whose livelihoods are woven into Delhi’s automotive ecosystem. Our vision of ‘Badalti Dilli’ is one where enablement moves faster than enforcement, where economic growth, road safety initiatives like CPR training and our ‘Buckle Up’ campaign and environmental responsibility progress together without leaving anyone behind.”

Shailender Luthra, Chairperson, FADA Delhi, said, “Today’s gathering reflects a changing Delhi and an evolving auto retail trade. The sector today is vastly different from what it was five years ago, and we are witnessing a significant shift driven by rising consumer confidence and aspiration, with Delhi recording a 17 percent growth in vehicle sales as of March 2026. Annual new vehicle registrations stood at nearly 800,000 units. Our industry remains a vital pillar of the city’s economy, with 550 dealership outlets providing employment to over 55,000 individuals and contributing approximately INR 71.5 billion to Delhi’s revenues through motor vehicle taxes and GST – INR 26.5 billion annually in motor vehicle tax and INR 45 billion as GST contribution from the auto sector. The data clearly shows that India is no longer debating electric vehicle adoption; it is actively embracing it. Delhi has witnessed a sharp increase in electric commercial vehicles and a 62 percent rise in electric two-wheeler adoption. To support and lead this transition, FADA has proposed to the Delhi Government the installation of 150 public charging stations at our own cost. In parallel, we are committed to strengthening local employment through skill development centres at ITIs and have also proposed the establishment of a vehicle scrappage centre to further support the government’s environmental objectives. At FADA, we believe we are doing far more than selling vehicles – we are shaping the future of mobility. As Delhi and its businesses evolve, I am confident that our dealers will not only keep pace with change but will lead this vital transformation towards a sustainable future.”

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Škoda Auto follows up its 2025 Milan Design Week debut with another appearance at Palazzo del Senato. The carmaker has commissioned Spanish architect Ricardo Orts, whom Forbes listed among the top 100 creative business people in 2024, to build an installation centred on modelling clay. That same playful material anchors the advertising push for the forthcoming Epiq, a compact electric crossover. Visitors will see the camouflaged vehicle alongside Orts's large scale works, all designed to showcase how Škoda currently thinks about form and function.

Palazzo del Senato hosts this event from 21 to 26 April. Orts, who runs Ulises Studio, has filled the Baroque courtyard with bright colours that blur the line between screens and physical space. Two pieces take centre stage: the hidden Epiq and a sculptural version called Epiq Sculpt. Their modern look clashes boldly with the historic architecture. The slogan woven through the presentation highlights a feeling of pleasant surprise: ‘Ooooh, that’s EpiQ!’

Beyond the main display, the open atrium offers several draws. A digital corner uses an LED screen to let people explore the Epiq and the brand. There are quiet zones, an open seating area, a space for children and a corner for group exercise and wellness talks. A Škoda Elroq has been turned into a mobile café selling Curiosity Fuel Coffee. Design leader Chan Park will join Orts for a conversation called Epiq Talks, giving guests a closer look at the project's origins.

Škoda Auto uses its Milan presence to champion curiosity, transformation and hands on discovery. The setup welcomes quick stops for a drink as well as full day visits with exercise sessions and discussions. Everyone from young children to design enthusiasts will find something engaging. The ultimate goal is to help people feel wonder again and enjoy how art can reshape ordinary spaces.

Martin Jahn, Škoda Auto Board Member for Sales and Marketing, said, “Milan Design Week allows us to further elevate the Škoda brand and present it far beyond the automotive world – as a brand driven by design, creativity and innovation. Our installation brings the Modern Solid design language to life in a playful, immersive way that invites people to experience our brand, not just observe it. At the heart of this presentation is the Epiq – a clear expression of our ambition to make electric mobility more accessible and to inspire new customer groups through design-led storytelling.”

Orts said, “Škoda Auto fits naturally into my visual world. It combines playfulness and accessibility with a strong technical and carefully considered design language. This balance between imagination and precision deeply resonates with my own work.”

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The German Rubber Industry Association (wdk) has expressed deep concern over the widening gap between automotive manufacturers and their suppliers in Germany, a trend observed for the first time since 2025. Managing Director Boris Engelhardt noted that many industry suppliers are fighting for economic survival. While car manufacturers continue to grow, German suppliers are shrinking. Engelhardt condemned automakers for demanding financial concessions from struggling suppliers, warning this threatens their very existence.

For decades, German automakers and suppliers worked hand in hand to achieve global leadership. Engelhardt argues this cooperation is now being abandoned as carmakers shift to cost-driven strategies, jeopardising Germany’s future as an innovative production hub. Since 2019, global disruptions have forced suppliers to reduce capacity while remaining flexible, but limits have now been reached.

Projected write downs of EUR 65 billion for 2025 stem from a lack of technological foresight in government mobility regulations. Engelhardt emphasised these consequences are no surprise, as the association warned more than a decade ago. Yet automakers now demand massive price reductions from shrinking suppliers instead of offering support.

Engelhardt concluded that solidarity is not a one-way street. After years of supplier flexibility, it is now the automakers’ turn to act responsibly. Preserving Germany’s automotive supplier base requires shared burden sharing, not unilateral financial demands from manufacturers.

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Scania has completely reworked its Services 360 portfolio by introducing a dedicated offering for new electric trucks, which now covers every operational need including battery care. At the same time, the company has rolled out flexible coverage plans for second-hand combustion engine vehicles, allowing owners of used trucks to choose from different levels of repair, maintenance and productivity support. This move reflects rising sales in both the new electric and used diesel truck segments.

Originally launched in 2024, the Services 360 portfolio was built around smart flexible maintenance planning and a range of digital tools. It already provided customised packages suited to fleets of any size or powertrain type. Now, Scania has extended Services 360 to include used vehicle customers, who are often more price sensitive. For them, four distinct packages called Core, Plus, Full and Pro are available, offering progressively deeper coverage. Core includes basic fleet maintenance and digital monitoring, while Pro adds proactive and powertrain repairs.

For owners of battery electric trucks, Scania offers the Full package within Services 360. By broadening access to these tailored service levels, the company reinforces its commitment to customer profitability across all business types. This expansion ensures that whether a customer operates new electric trucks or used conventional ones, they receive a competitive and customized service solution designed to keep their vehicles running efficiently and profitably.

Lars Gustafsson, Senior Vice President and Head of Trucks at Scania, said, “We want our battery-electric truck customers to only focus on maximising the use of their vehicles. By offering a single service level – Full – we ensure that every repair, every interaction between systems and every unexpected issue is handled and covered by Scania, giving our electric truck customers all the support they need. We pride ourselves in being close to our customers’ pain points, and extending Services 360 is a way to reach even more transport operators and cover the full ecosystem of needs around their business. No matter the type of powertrain, operation or business sector, the underlying goal of Services 360 is to support the customer and make them more profitable and sustainable for the long term.”

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