IAC flags absence of Autogas vehicle production in India, calls for policy push and lower GST
New Delhi: The
Indian Auto LPG Coalition
(IAC) has raised concerns over the absence of Original Equipment Manufacturer (OEM) production of
Autogas vehicles
in India, even as eight of the world's top 10 automakers offer such models in global markets. The appeal comes amid continuing air quality challenges in Indian cities and the country's need for alternative clean transportation solutions.
Globally, around 28.3 million Autogas vehicles are in use and supported by nearly 82,000 refueling stations. IAC pointed out that countries such as Russia, Turkey, Korea, Poland, and Ukraine have successfully integrated Autogas into their transportation systems through supportive policies.
'Globally, Autogas is a proven and readily available solution for cleaner transportation. Many countries are using clean fuel to drive sustainable mobility and tackle rising urban pollution. Transitioning to Autogas represents a practical step towards reducing emissions, especially in regions where a sudden shift to electric vehicles (EVs) could strain the energy grid. Converting a vehicle to run on Autogas is significantly more affordable than purchasing a new electric vehicle,' said Mr. Suyash Gupta, Director General, Indian Auto LPG Coalition.
According to IAC, India currently operates around 33 crore petrol and diesel vehicles, contributing significantly to urban air pollution. The coalition has called for the use of existing Autogas technology as a transitional measure for those unable to afford electric vehicles in the near term.
Referring to recent media coverage about a health-focused tech entrepreneur cancelling a podcast in Mumbai due to poor air quality, Gupta said, 'The severity of India's air pollution crisis is underscored by recent events, such as tech millionaire Bryan Johnson reportedly cutting short his appearance on Nikhil Kamath's podcast in Mumbai due to poor air quality. Johnson, known for his health focus, found the indoor AQI of 130 and PM2.5 levels of 75 µg/m³ – equivalent to smoking 3.4 cigarettes in 24 hours – unbearable, even with air purifiers. The average resident of India faces a reduction in life expectancy of 5.3 years due to particulate air pollution.'
The coalition has also recommended lowering the Goods and Services Tax (GST) on Autogas conversion kits from 28 per cent to 5 per cent . The aim is to enhance affordability and incentivize adoption among vehicle owners, particularly in urban areas.
IAC underlined the importance of OEM participation in producing factory-fitted Autogas vehicles in India, noting that such models would offer better performance and safety, thereby boosting consumer confidence in the alternative fuel option.
'Autogas is a cleaner, cost-effective alternative to conventional fuels, significantly reducing emissions of particulate matter (PM) and nitrogen oxides (NOx) compared to gasoline and diesel. It is often cheaper than these fuels, allowing consumers to save on fuel costs while utilizing existing distribution networks, which reduces infrastructure investment needs. Many vehicles can be converted to run on both Autogas and gasoline, offering flexibility,' the IAC noted.
The coalition urged both the government and the automotive industry to recognize Autogas's potential in supporting India's clean mobility goals, reducing emissions, and building sustainable urban transport systems.
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