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WLPGA Oceania Regional Summit May 18, 2016

Indian Auto LPG Past the crossroads…

WLPGA Oceania Regional SummitMay 18, 2016

Suyash Gupta - Indian Auto LPG Coalition


IAC MEMBERS


Voice

• Representation in:

– Central Motor Vehicle Rules –Technical Standing Committee (CMVR-TSC)

– Standing Committee on Emissions (SCOE)

– Bureau Of Indian Standards (BIS).

• Focus on :

– Sensitize government with autogas benefits by consistently promoting the fuel and organizing campaigns, workshops.

– Development of a compelling, 2 Wheeler Conversion Program.

– Fiscal Incentives/ tax sops for attractive equipment and autogaspricing.


Indian LPG Industry

• India:

• India’s GDP close to $ 2.4 Trillion,

• Economy growth of 7.5% pa.

• Benefitted by lower crude prices

• Demand supported by a population

of 1.2 b.

• LP Gas Market

• LP Gas Marketing in India commenced

in 1950s by Burma Shell.

• LPG Demand started picking up from

1980s, when demand was barely 0.4 MMT

- Among the world top 5 LPG users, consuming

19 million tonnes annually.


INDIAN AUTOGAS

• LPG has built up a huge nationwide network and reach already

with 500+ cities being catered now.

• Indian Automotive Industry :

-Annual production of 23.37 million vehicles in FY 2014-15

-Accounts for 7.1 per cent of the country's GDP.

-Over 81% Share of Two Wheelers.


AUTO GAS : STATION SPREAD. ABOUT 1050 STATIONS, 500+ CITIES COVERED


India Auto LPG Station spread


AUTO GAS : STATION SPREAD. PSUs LEAD.


LPG FLEET SIZE, 2 m+ ?Aftermarket dominates


Apri l 1 2016, Mumbai Pump Pr ices

66.37$0.99

54.86$0.82

39.47$0.59

0

10

20

30

40

50

60

70

Rs/liter Rs/liter Rs/liter

Petrol Diesel Auto LPG

Mumbai

ALPG Retail Prices


147%

135%

53%

-9 %

38%3 % 1 %

-4%

-7%

-11%

+17%

0

50

100

150

200

250

300

350

400

2003 2005 2007 2009 2011 2013 2015-16

SALE

S (T

MT)

YEAR

AUTO GAS SALES INTMT (THOUSANDMETRIC TONNES)

221%

AUTO GAS : SALES


What works for Auto LPG (Strengths, Opportunities)

• The ‘Auto LPG’ Value proposition– Wide Availability. 500 + Cities covered..

– High Petrol – Auto LPG Difference..

– Costs of Infrastructure and conversion

• Opportunities – Reform in LPG subsidy administration. Reduced diversion. Higher

Sales from ALDS.

– Judicial/State governments’ push to convert to cleaner fuels..

– CNG Limitations..


Industry Priorities..

• Indian Auto LPG Roadmap.. Value statement for each key stakeholder group..

• On Line Kit Certification

• OEM Engagement

• Outreach through Social Media

• ‘Green Stroke’ Supporting Two Wheeler Conversion programme..


2w LPG Kit- After market designs


OEM installation. Convenient, aesthetically acceptable..

Same sleeve hosts two tanks, 4.9 Ltr for ALPG and 2 Ltr for MS.


Sales from Retail Outlets Vs that from Cylinder!

• South Korea ( 3.78 MT, 2.355 Million LP Gas Vehicles)

• Turkey ( 2.838 MT, 4.076 Million LP Gas Vehicles)

• Thailand ( 1.974 MT, 1.07 m LP Gas Vehicles)

• India

• 2.5 million+ Autogas vehicles

• 0.35 MT, Sales from Retail Outlets

•Actual Auto Gas Sales…??


Thank You!!

Suyash GuptaIndian Auto LPG Coalition

www.iac.org.in

[email protected]

http://www.iac.org.in/

mailto:[email protected]


Phase ICapping of Cylinder

Phase IIAadhaar Based LPG Delivery

Phase IIIAadhaar Based LPG Delivery only to Segment

Announced 6 Cylinder Per Year

Reduction in Fake identity& direct subsidy transfer

Subsidy reduction by 30%

Further Subsidy reduction

Subsidy Only to targetHousehold


Proposed Subsidy regime

• Phase I

• Restrict number of subsidized cylinders per household

• Remaining Cylinders at market price

Phase I Implemented

• Phase II

• Subsidy based on Aadhaar authentication

• Aadhaar based direct cash transfer to customers

Phase II Implemented

• Phase III

• Subsidy to targeted segments

• Segmentation based on Aadhaar numbers

Phase III under discussions and subsequent implementation

indian auto lpg - home - wlpga · •indian auto lpg roadmap.. value statement for each key...

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