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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Kia India, one of the leading passenger vehicle manufacturers, has announced a landmark three-year partnership with the Tennis Premier League (TPL), coming on board as the league's Exclusive Sponsor.

The multi-year agreement integrates the automaker across the entire TPL ecosystem, including its digital application and all eight franchise teams as the front-of-jersey sponsor.

The partnership marks a significant milestone for the homegrown league, which broadcasts live on Jio Hotstar and has completed 7 seasons under the auspices of the All India Tennis Association (AITA).

The event is backed by Indian tennis legends Leander Paes and Sania Mirza, alongside celebrity franchise co-owners Sonali Bendre Behl (Lucknow Blazers) and Rakul Preet Singh (Hyderabad Strikers). The league has established itself as an impactful non-cricket sporting property in India.

A core focus of the multi-year deal is the expansion of TPL’s grassroots and talent-identification infrastructure. Over the past two years, the league’s flagship ‘Race to Gold Scholarship’ initiative has provided developmental support to more than 80 young tennis players across the country.

With Kia India’s financial backing and resources, the program plans to empower an additional 120-plus young athletes in the coming years. The long-term objective of this sustained investment is to nurture Olympic-level talent capable of competing at the 2036 Olympic Games.

Atul Sood, Senior Vice President - Sales and Marketing, Kia India, said, “At Kia India, we believe sports have the power to inspire aspirations and create meaningful cultural connections. Tennis, with its youthful energy, global appeal, and premium character, strongly resonates with our brand philosophy. Our partnership with Tennis Premier League reflects a shared vision to make tennis more engaging and relevant for a new generation of audiences in India. Through TPL’s growing ecosystem and grassroots focus, we look forward to supporting greater participation, engagement, and talent development around the sport.”

Kunal Thakkur, Co-Founder, Tennis Premier League, added, "This partnership with Kia India is a great moment for us. Over the last few years, we have focused deeply on building a strong grassroots ecosystem through our app and initiatives like Race to Gold along with our League. Having a global brand like Kia India recognize and back this vision gives us the confidence to scale our efforts and truly impact the future of Indian tennis."

Mrunal Jain, Co-Founder, Tennis Premier League, stated, "TPL has always believed in creating a complete tennis ecosystem—from identifying young talent to giving them a platform at the highest level. With Kia India coming on board, we are not just adding a sponsor; we are gaining a long-term partner who shares our vision of building champions for India."

Leander Paes, 18-time Grand Slam Champion, remarked, “Over the years, Tennis Premier League has created a strong platform that is helping tennis grow at every level – from grassroots development to professional competition. Partnerships like this with Kia India is extremely important for the future of Indian tennis, as they bring long-term vision, credibility, and meaningful support to the ecosystem.”

The alliance links Kia's global sports portfolio, which includes a 25-year legacy as the major partner of the Australian Open, with India's emerging contemporary sports culture.

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Caterham has unveiled a new limited-edition model, the Seven Nürburgring Edition, marking a century of the famous German circuit widely regarded as the world’s most demanding race track. Production will be strictly limited to just 100 units globally, with customers able to choose between the Seven 420R or Seven 340R platforms depending on their market. Pricing in the United Kingdom starts at GBP 48,995 (approximately USD 65,690) including VAT.

Engineered specifically for the challenges of the Nürburgring, the car features a bespoke race suspension developed exclusively by Bilstein using its advanced vertical dynamics test rig. The setup was refined to deliver exceptional capability on both road and track, resulting in a tailored package unique to this edition. Power comes from a naturally aspirated 2.0 litre Ford Duratec engine producing 210 brake horsepower at 7,600 rpm, giving a power-to-weight ratio of 375 bhp per tonne. Paired with a five-speed gearbox, the Seven Nürburgring Edition sprints from zero to 60 miles (approximately 96 km) per hour in 3.8 seconds and reaches a top speed of 136 miles (approximately 219 km) per hour.

As a fully licensed Nürburgring product, the car incorporates distinctive circuit branding and logos, along with three available paint finishes named Traffic Red, Agate Grey and Basalt Grey, though custom colours are also offered. Exterior upgrades include a red track day roll bar, a mesh grille with a dual-colour Seven logo, a 620-style nosecone with carbon aero whiskers, a Gunmetal Grey chassis, carbon front wings and a Black Pack comprising a black windscreen, headlamp bowls and exhaust heat shield. Inside, leather seats feature Nürburgring embroidery and red stitching, echoed on the transmission tunnel, while carbon interior panels, four-point road harnesses, sequential shift lights and an individually numbered plaque for each of the 100 cars complete the package.

For a century, the 12.9-mile circuit in Germany’s Eifel Mountains, nicknamed the Green Hell, has served as the ultimate proving ground for cars and drivers with its changing elevation and 73 corners. Caterham has flourished there for decades, most notably achieving an 11th place finish at the Nürburgring 24 Hours in 2002 driven by Chris Cooper, Chris Harris, Clive Richards and Peter Haynes.

Trevor Steel, Senior Vice President – Operations, Caterham Cars, said, “For a century, this track has championed values that are at the heart of what the Seven is all about – balance, precision and an unmatched driving experience. We set out to capture the spirit of the ‘Ring, with every element of the car being honed to reflect the track’s unique demands and character. Designed both for use on the track and the road, the Seven Nürburgring Edition is a unique vehicle that perfectly pays tribute to this famous, globally renowned circuit.”

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South Korean auto major Hyundai Motor Group has entered into a multilateral agreement with 9 corporate partners from South Korea, Mainland China, Hong Kong, and France to develop an integrated hydrogen ecosystem in Hong Kong.

The announcement was made during the International Hydrogen Development Symposium 2026, coinciding with a separate intergovernmental Memorandum of Understanding (MoU) signed between the governments of South Korea and Hong Kong to align clean energy policies.

The corporate alliance is structured to establish a regional hydrogen market while positioning Hong Kong as an operations base for the Group’s expansion across the Asia-Pacific territory. The project is aligned with the Hong Kong Government’s Climate Action Plan 2050 and the city's 2024 Hydrogen Roadmap, which provides financial subsidies via the New Energy Transport Fund for zero-emission infrastructure.

The execution plan focuses on localised energy production and transit infrastructure to operate by the end of 2030. Key initiatives include:

• Waste-to-Hydrogen (W2H) Production: Utilising local landfill gas (LFG) resources to generate low-carbon fuel.
• Fleet Deployment: Introducing fuel cell commercial vehicles, focusing on tour buses and airport shuttles to service the transit sector.
• Refuelling Network: Constructing hydrogen refuelling stations (HRS) in high-traffic freight corridors.

Seung Kyu Shin, Executive Vice-President and Head of Energy & Hydrogen Policy Sub-Division, Hyundai Motor Group, said, “This MoU was signed as Hyundai Motor Group’s commitment to advancing Hong Kong’s proactive hydrogen policies and driving the acceleration of its hydrogen ecosystem utilising the Group's hydrogen business capability and experience. Starting with Hong Kong, we look forward to expanding our collaboration and business opportunities across the broader Asia-Pacific hydrogen market.”

Alpha Lau, Director-General of Investment Promotion of Invest Hong Kong, stated, “Today multi-party signing is both a landmark moment for Hong Kong’s green economy and a clear signal that the city’s hydrogen ecosystem is gaining real traction. Over the past three years, InvestHK has helped leading hydrogen enterprises establish themselves in Hong Kong, several of which have since listed on the Hong Kong Stock Exchange, raising over HK$2.5 billion in total. For businesses with global green ambitions, Hong Kong is where business growth takes shape.”

The Group's HTWO Guangzhou facility, its first overseas fuel cell production site, will manufacture and supply the vehicle systems required for the regional deployment. Under the timeline established by the consortium, project site selection will be finalised by 2027, followed immediately by the engineering design phase for the production plants.

The division of responsibilities among the ten signatory companies is structured as follows:

This project expands the Group’s global W2H portfolio, which includes the HTWO Energy Cheongju facility in South Korea utilising sewage sludge and an active landfill-to-hydrogen joint venture in Indonesia with Pertamina.

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Hyderabad-based electric vehicle company Keto Motors has marked its debut on the Bombay Stock Exchange following the completion of its reverse merger with Taaza International.

The transaction, which received approval from the National Company Law Tribunal (NCLT), Hyderabad Bench, alters the corporate identity and core business operations of the listed entity to focus on the commercial electric vehicle (EV) market.

The listing coincides with the development of the company's INR 3 billion electric bus manufacturing project in Telangana. The facility, situated in Jadcherla, is being established to support the assembly and production of commercial EV platforms, including the upcoming rollout of the Urbanova KE9, a 9-metre electric bus platform that has secured Central Motor Vehicles Rules (CMVR) Type Approval certification.

To support its engineering requirements, Keto Motors has formed a technical association with Taiwan-based TRON Energy Technology. The collaboration provides the manufacturer with access to powertrain solutions, battery systems and chassis engineering technologies for its vehicle line-up. The company is targeting demand from State Transport Undertakings (STUs), institutional fleet operators, and urban transit networks.

Venkatesh Challa, Director, Keto Motors, said, “Our BSE debut marks an important milestone in Keto Motors’ journey as we continue building a scalable electric commercial mobility business in India. This development strengthens our ability to expand manufacturing capabilities, accelerate product innovation, and support the growing adoption of sustainable transportation solutions across the country. We believe India’s commercial EV sector is entering a transformative phase, and Keto Motors is well-positioned to contribute meaningfully to this transition.”

“To all our shareholders, I would like to convey that this journey is not only about business growth, but also about contributing to India’s progress. We remain committed to building cutting-edge technology, world-class manufacturing capabilities, generating employment, and advancing sustainable mobility solutions that can play a meaningful role in the country’s growth story,” added Challa.

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