IAC Pushes for Autogas Vehicles in India Amid Growing Pollution Concerns

New Delhi, March 6, 2025: The Indian Auto LPG Coalition (IAC) has renewed its call for the production of Autogas vehicles in India, highlighting that eight of the world's ten largest automakers manufacture these vehicles for global markets. Despite the increasing need for sustainable mobility solutions, India has yet to adopt this clean fuel technology at scale. With rising air pollution levels in major cities and the challenge of transitioning to electric vehicles (EVs) nationwide, IAC believes Autogas can serve as an immediate alternative to reduce vehicular emissions.

Global Success of Autogas and India's Potential:-

Globally, approximately 28.3 million Autogas vehicles are in operation, supported by nearly 82,000 refueling stations. Countries such as Russia, Turkey, South Korea, Poland, and Ukraine have successfully integrated Autogas into their transportation systems, benefiting from lower emissions and cost savings. These nations have implemented supportive policies, including tax incentives and subsidies, to promote Autogas adoption.

In India, road transport remains a major contributor to urban pollution, with around 33 crore petrol and diesel-powered vehicles in use. Shifting a portion of this fleet to Autogas could help lower emissions, particularly in areas where the energy grid may not be able to handle a sudden shift to EVs.

Challenges and Policy Recommendations:-

Despite the environmental benefits, India has been slow to adopt Autogas vehicles. One of the primary hurdles is the high Goods and Services Tax (GST) of 28% on Autogas conversion kits, making them expensive for consumers. The IAC has urged policymakers to reduce this tax to 5% to make conversions more affordable and incentivize the use of cleaner fuels.

Another critical factor is the role of Original Equipment Manufacturers (OEMs) in producing factory-fitted Autogas vehicles. Currently, aftermarket conversions remain the primary way for Indian consumers to switch to Autogas. However, factory-fitted models provide better safety, performance, and reliability, which can enhance consumer confidence and drive wider adoption. The IAC has called on the automotive industry to invest in Autogas technology and introduce factory-fitted models to expand the market.

Environmental and Economic Benefits of Autogas:-

Autogas is a cost-effective and cleaner alternative to conventional fuels, significantly reducing particulate matter (PM) and nitrogen oxide (NOx) emissions compared to petrol and diesel. It is also more affordable, helping consumers save on fuel costs while utilizing existing fuel distribution networks, reducing the need for additional infrastructure investments.

Many vehicles can be converted to operate on both Autogas and gasoline, offering flexibility to consumers. This dual-fuel capability can ease the transition for vehicle owners who are hesitant to adopt new technology entirely. Given India's urgent need to reduce pollution and dependence on fossil fuels, incorporating Autogas into its transportation strategy could be a practical and immediate solution.

A Call for Action:-

The IAC has emphasized the need for government intervention and industry participation in expanding the Autogas market in India. Lowering GST rates, introducing incentives, and encouraging OEMs to manufacture factory-fitted Autogas vehicles are crucial steps to ensure wider adoption. With growing concerns over air pollution and public health, the implementation of Autogas as a sustainable mobility solution can contribute to cleaner cities and a healthier environment.

As India continues to explore alternatives to reduce vehicular emissions, the adoption of Autogas could serve as an effective bridge towards a greener future, ensuring a balanced approach between environmental sustainability and economic feasibility.

Source: Indian Auto LPG Coalition (IAC)