New Delhi, July 27 -- CNG and LNG penetration in the commercial vehicles (CV) industry in India is expected to increase to 30-35 per cent by 2029-30, up from 25 per cent in 2025-26, according to a report by rating agency ICRA. Overall alternative fuel penetration across commercial vehicles, covering CNG, LNG, and electric powertrains, is projected to touch 40-45 per cent by FY30, rising from 27 per cent in FY26.

The ICRA report noted that CNG and LNG adoption in commercial vehicles grew from 7 per cent in 2020-21 to 25 per cent in 2025-26, emerging as a practical alternative to conventional fuels. Electric vehicle penetration is expected to rise to 10-15 per cent by 2029-30, driven primarily by buses in the medium and heavy commercial ve...