Pune: The rapid adoption of CNG small commercial vehicles is emerging as a defining trend in India’s light commercial vehicle (LCV) segment, with Ashok Leyland strengthening its green portfolio amid rising demand and post-GST market expansion.
As fuel costs remain a major component of operating expenses, CNG is increasingly positioned as a practical and cost-efficient transitional fuel for small and light commercial vehicle operators.
Ashok Leyland stated that fuel accounts for nearly 46 percent of operating costs in commercial vehicles, making efficiency critical for customers investing ₹8–10 lakh per vehicle.
The company believes CNG Small Commercial Vehicles offer long-term savings while maintaining performance and payload capabilities.
The company has introduced one of the only small trucks in its category with a factory-fitted CNG option on its upgraded “Bada Dost” platform, which features a loading length of 10 feet 7 inches — among the largest in its segment.
The move aligns with rising CNG adoption across Delhi NCR, Gujarat, Mumbai, and Pune, where infrastructure expansion is accelerating fleet transition toward CNG Small Commercial Vehicles.
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Expanding CNG Infrastructure Supporting Growth
Viplav Shah, Head – LCV Business, Ashok Leyland said, “The momentum in CNG small commercial vehicles is closely linked to the expansion of city gas distribution networks. Companies such as Indraprastha Gas, Mahanagar Gas, and Adani Total Gas are expanding CNG infrastructure across major urban corridors.”
In Maharashtra, particularly Mumbai and Pune, the addition of new CNG stations has improved accessibility for commercial fleet operators. Ashok Leyland noted that its CNG vehicles can operate approximately 280 kilometers on a single fill, making them suitable for both dense city routes and intercity corridors such as Mumbai–Pune.
“While diesel continues to dominate the commercial vehicle segment, CNG penetration in certain small commercial vehicle categories currently stands at around 2–4 percent and is steadily rising. The company views CNG as a bridge fuel over the next 10–20 years, particularly in small and light commercial vehicle applications,” Shah said.
CNG Small Commercial Vehicles: GST Rate Cut Accelerates Overall Growth
Alongside the CNG transition, the GST rate cut has significantly boosted overall Small Commercial Vehicle Growth. Vehicle prices reduced by nearly 10 percent, stimulating demand across sectors.
“According to government VAHAN portal registration data, industry growth prior to the GST reduction was below 1 percent. In the four months following the rate cut, industry growth rose to nearly 20 percent, while Ashok Leyland reported approximately 30 percent growth during the same period,” Shah stated while addressing mediapersons.
The company noted that sectors such as furniture and footwear have seen growth of 9–15 percent post-GST, compared to earlier 4–6 percent expansion. Increased consumption has translated directly into higher goods movement, strengthening demand for both diesel and CNG small commercial vehicles.
India is expected to register approximately 6,40,000 small and light commercial cargo vehicles this year, with projected industry growth of 9–10 percent by year-end. Certain periods have already witnessed 20–25 percent expansion, reinforcing sustained momentum in the LCV segment.
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Consumption Patterns and Urban Logistics Driving Demand
Viplav Shah attributed continued small commercial vehicle growth to rising population, increasing consumption, and greater value addition in goods movement. “Goods that were earlier transported in raw form are now increasingly moved in packaged formats, requiring higher logistics frequency and cargo space. From retail distribution and food delivery to municipal services, small commercial vehicles are becoming central to last-mile logistics,” he said.
