Stringent Government Regulations and Emission Norms Drive the Global LPG/CNG Vehicles Market, Finds Frost & Sullivan

By Frost Sullivan, PRNE
Monday, August 30, 2010

LONDON, August 31, 2010 - Stringent carbon dioxide (CO2) emission norms, government regulations,
and ecological standards will be the key drivers for the growth of liquefied
petroleum gas/compressed natural gas (LPG/CNG) vehicles in developed
countries, particularly in the European Union (EU). On the one hand, CNG
vehicles are expected to experience significant growth in the coming years in
Europe. On the other hand, LPG vehicles will continue to be a competitive
option due to EU incentives resulting from lobbying by the oil companies.



New analysis from Frost & Sullivan (,
Executive Analysis of Global LPG/CNG Vehicles Market, finds that India, Italy
and Russia are the largest markets for LPG-powered cars and Pakistan, Iran,
India and Italy are the largest markets for CNG-powered cars.

"The Turkish and Polish markets will be significant for LPG growth in the
coming years," says Frost & Sullivan Research Analyst Hariher
Balasubramanian. "Italy is set to remain the largest market for LPG/CNG car
sales followed by Iran and India by 2016."

Cost savings of an average of 50 per cent compared to petrol/diesel
vehicles will further drive growth in the global LPG/CNG vehicles market.
While India is poised to be the undisputed leader in growth for LPG and CNG
car sales, the Iranian market for CNG vehicles has the highest sales of CNG
vehicles in the world. These sales are encouraged by strong governmental

"However, a major challenge for this market is insufficient CNG and LPG
service stations infrastructure and a poor refuelling station network,"
explains Balasubramanian. "Fuel companies will be the key participants in the
LPG/CNG market value chain and their response to reducing GHG emissions will
be important."

International government bodies, original equipment manufacturers (OEMs),
suppliers in the market and fuel companies should work together to develop
refuelling infrastructure, facilitating LPG/CNG vehicle sales.

"There is a lack of understanding of the benefits of LPG/CNG by the
global population," concludes Industry Manager Krishanasami Rajagopalan. "LPG
and CNG will greatly help in reducing fleet emissions."

If you are interested in more information on this study, please e-mail
Monika Kwiecinska, Corporate Communications, at,
with your full name, company name, title, telephone number, company e-mail
address, company website, city, state and country.

Executive Analysis of Global LPG/CNG Vehicles Market is part of the
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          Executive Analysis of Global LPG/CNG Vehicles Market

    Monika Kwiecinska
    Corporate Communications - Europe
    P: +48-22-390-4127
    F: +48-22-390-4160

Monika Kwiecinska, Corporate Communications - Europe, Frost & Sullivan, +48-22-390-4127, Fax, +48-22-390-4160, monika.kwiecinska at

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