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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Mumbai-headquartered engineering major Greaves Cotton has incorporated a wholly-owned subsidiary, Greaves International Trading FZE (GITFZE), in Dubai, United Arab Emirates. The subsidiary will function as a hub for trading and distribution, aiming to increase the company’s presence in the Middle East and Africa.

The subsidiary will manage business development, customer engagement, technical support, channel partnerships, aftermarket services and supply chain coordination. Its portfolio will include diesel engines, gensets and powertrain solutions.

Greaves International Trading FZE  will initially target GCC markets, including the UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain, with subsequent expansion planned for the Levant and Africa.

Parag Satpute, MD & Group CEO, Greaves Cotton, said, “International Business is a key growth driver for Greaves and a core pillar of our GREAVES.NEXT strategy. In line with our strategic roadmap, its contribution increased from 9 percent to 13 percent in FY2026. The establishment of Greaves International Trading FZE marks a significant step in strengthening our presence across the Middle East and Africa. It enhances our ability to respond with agility to market needs, deepen customer engagement and deliver reliable, future-ready solutions. This is a focused move towards expanding our global footprint and driving sustained, long-term growth.”

The establishment of GITFZE is part of the company's strategy to scale its footprint and export capabilities.

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Stellantis, one of the leading automotive groups, has announced appointments within its Enlarged Europe organisation, effective 1 July 2026.

The company has announced that Santo Ficili has been appointed the CEO of the Maserati brand, while continuing his role as CEO of Alfa Romeo. In addition, Luca Napolitano has been appointed Head of Stellantis &You Sales and Services.

These appointments follow the departure of Jean-Philippe Imparato, who is leaving the company after 36 years.

Emanuele Cappellano, COO, Enlarged Europe & European Brands and Head of Stellantis Pro One, said, “I would like to extend my sincere thanks to Jean-Philippe for his unparalleled contribution to our Company, in which he spent his entire professional life. Jean-Philippe has been a true example of how to combine passion with business, inspiring people with his daily commitment and deep knowledge of the automotive industry. I congratulate on their appointments Santo and Luca, who are already fully operational within Maserati and Stellantis &You organisations and will ensure continuity in these key areas. Their experience and leadership will be crucial in this new stage of growth.”

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Tata Motors has entered into a memorandum of understanding with Castrol India to launch a pilot programme focused on establishing a circular economy for used engine oil. The initiative directly supports India’s Extended Producer Responsibility regulations while addressing the environmental challenges posed by lubricant waste.

The collaboration will create a structured and traceable system for the collection, storage and channelling of used oil originating from Tata Motors’ authorised service network. Operations for this pilot are specifically centred in Karnataka, targeting a longstanding gap in the responsible handling of this hazardous material.

Under the programme, Tata Motors’ service touchpoints in the state will function as designated collection hubs. Castrol India will leverage its technical expertise to oversee the delivery of the recovered oil to registered recyclers, ensuring rigorous quality control and traceability throughout the recycling chain.

This partnership extends the companies’ established relationship and reinforces their mutual dedication to sustainability. The pilot complements Tata Motors’ wider strategy of promoting alternative-energy vehicles while supporting Castrol India’s objective of integrating recycled content into its premium lubricant offerings.

Vikram Agrawal, Head – Spares and Non-Vehicle Business, Tata Motors Commercial Vehicles, said, “Responsible used-oil management is central to building a truly circular automotive ecosystem in India. The volume of used engine oil generated across India’s roads each year makes responsible collection and recycling a matter of significant environmental consequence. By partnering with Castrol India, we are creating a credible, scalable model that links responsible collection at our service touchpoints to high-quality re-refined output. This is a meaningful step in Tata Motors’ broader sustainability journey.”

Anoop Jindal, Vice President – B2B (OEM) Sales, Castrol India Limited, said, “Creating a circular economy for lubricants requires collaboration across the entire value chain. This association with Tata Motors marks our first OEM collaboration focused on building a structured ecosystem for responsible used-oil management in India. We are working to strengthen every link in the circularity chain, from collection and channelisation to recycling and reuse. Insights from our used-oil collection pilots in southern India have deepened our understanding of both the opportunities and challenges involved in scaling circularity. Together with Tata Motors’ extensive service network, this initiative can help create a more organised, traceable and scalable model for used-oil circularity in India.”

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French automotive major Renault Group has appointed Quitterie de Pelleport as General Secretary, effective from 1 July 2026. The new division will oversee Legal, Audit, Risk, Ethics & Compliance, Prevention and Protection, Sustainability, Strategic Partnerships, Defence activities and the Circular Economy unit ‘The Future Is Neutral’.

The company also announced the appointment of Sandra Gomez as Chief Product & Program Officer and Francois Lavernos as Chief Information & Digital Officer. Both will report to CEO Francois Provost, who will oversee strategy and the futuREady product plan.

Francois Provost, said, “Four months after the launch of our futuREady plan, we are continuing the transformation of Renault Group with a clear focus on simplification and speed of execution. The creation of the General Secretariat is a key lever to strengthen our governance and our capacity to deliver on our ambitions. This role will also contribute to the development of certain high-potential activities. I have every confidence in Quitterie to lead this strategic function. At the same time, we are simplifying the scope of product, programs and strategy to accelerate the strengthening of our vehicle range and technologies.”

Pelleport joined Renault Group in 2021 as Chief Legal Officer. Her career includes roles at Kramer Levin Naftalis & Frankel, DLA Piper, Rhodia and Solvay.

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