What's Driving LNG Adoption in India’s Commercial Transport

In an interaction with Thiruamuthan, Assistant Editor at Industry Outlook, Anand Mimani, CEO – EV & New Energy Business at Blue Energy Motors, discusses LNG's role in India’s long-haul transport sector as a cleaner alternative to diesel. He highlights LNG’s benefits, reducing emissions, cost savings, and improved infrastructure, while noting that infrastructure gaps and government support are key to scaling its use alongside bio-LNG and hydrogen.

Anand Mimani is an experienced leader with 27+ years in green mobility, including expertise in EV/LNG, logistics, supply chain, manufacturing, and sustainability-focused transformations.

As LNG gains traction as a cleaner alternative to diesel for long-haul trucks and buses in India, what operational and economic factors are shaping fleet adoption?

LNG is an immediate decarbonizing alternative for long-haul transportation due to its range capability and emission reduction from a sustainability angle. It is easily adoptable, even though the initial cost is higher than traditional equivalent diesel trucks, the operational cost benefits outweigh the initial cost difference.

Take for example, our 1000+ trucks on the road are testimony to this in operation. Our trucks are built for India’s tough conditions. With 280 hp and a dual-tank setup, they can go up to 2,400 km on a single fill of a double-tank LNG vehicle, which genuinely reduces range anxiety. And the environmental gains are meaningful with up to 30% lower COâ‚‚ emissions along with a sharp drop in particulate matter and sulfur oxides. So, fleets get cleaner operations without giving up payload or pulling power.

The economics are improving too. LNG fuel is more cost-efficient, and the refuelling network is expanding quickly, with more than 32 LNG stations already on key corridors, with new ones coming up every month. The feedback from logistics partners has been encouraging because they can see the day-to-day benefits in real operations.

At Blue Energy Motors, we genuinely believe LNG can play a major role in India’s transition to cleaner freight. And we’re committed to walking this journey with fleet operators, one truck and one route at a time.

Also Read: Intersection of Technology and Sustainability in Last-Mile Mobility

Since adoption depends heavily on infrastructure readiness, how are gaps in LNG refueling and distribution networks across India influencing operator confidence and large-scale commercial uptake?

Infrastructure is absolutely central to LNG adoption, and we see this very closely in our conversations with fleet operators. While the ecosystem is growing fast, gaps in coverage still influence how quickly large fleets are ready to make the shift.

Today, India has more than 32 LNG stations across important freight corridors. This has already made routes like Delhi–Chennai, Delhi–Mumbai, and Ahmedabad–Bengaluru far more comfortable for LNG operators. But for truly seamless, long-haul operations, operators want the assurance that no matter where they go, refuelling is never a concern and that’s where the current gaps still create hesitation.

That said, the momentum is strong. A large-scale rollout of close to 1,000 planned LNG stations is already underway across the country, including the Golden Quadrilateral and other high-density freight routes. We are closely working with our energy partners and government stakeholders to ensure that this expansion happens quickly and in the right locations.

On corridors where the network has matured, like Mumbai–Pune fleet operators are already reporting higher uptime and smoother operations, which is building confidence in a very real way. As refuelling availability improves, we see operators becoming far more open to adopting LNG at fleet scale.

As infrastructure strengthens, operator trust grows and that trust is what will ultimately drive large-scale commercial uptake across India.

Given that cost per kilometer is central to fleet decisions, how does LNG compare to diesel in real-world conditions, and are operators seeing measurable returns?

For most fleet operators, it ultimately comes down to whether their trips become more economical and out on the road, LNG is proving that it can deliver those savings. While the upfront cost of an LNG truck is higher, the real benefits start becoming visible once the vehicle is in regular operation.

With diesel priced at around ₹92 per liter and LNG at approximately ₹78 per kg, fleet operators are experiencing fuel cost savings of about 10–15% per kilometer in real-world operations. On long-haul routes where trucks typically cover 8,000–10,000 km per month, this translates into a meaningful reduction in monthly fuel expenditure. When applied across multiple vehicles, these savings compound at the fleet level, resulting in a material improvement in overall operating costs.

Many of them recover the initial premium in about 2.5–3 years, simply through lower fuel expenses and better uptime. That’s why logistics operators are steadily adding LNG to their fleets, they’re looking at the numbers from actual trips, not just projections.

In day-to-day terms, LNG helps them move the same load, on the same routes, at a lower running cost while also cutting emissions. For most operators, that combination makes LNG a very practical and future-ready choice.

Considering India’s push for lower emissions, how effective have government incentives and regulatory policies been in making LNG a viable mainstream choice for commercial transport?

In September 2024, the Government of India articulated its intent to shift nearly one-third (33%) of long-haul, heavy-duty trucks to LNG over the next 5–7 years, with a view to reducing emissions and improving air quality. This clear policy signal, combined with support for cleaner fuels and infrastructure development, has helped bring LNG into mainstream discussions within the freight ecosystem.

Policy support around LNG infrastructure expansion, including plans for over 1,000 LNG refuelling stations along major freight corridors, has created tangible momentum. In addition, measures such as tax incentives, toll-related benefits, and ongoing discussions around access to more affordable domestic gas are gradually improving the economic case for fleet operators.

That said, scaling LNG adoption will require sustained policy continuity. At present, India has a little over 32 LNG stations, compared to more than 5,000 stations in China, which highlights both the progress made and the significant headroom for growth. Encouragingly, government sustainability objectives are well aligned with LNG’s lower-emission profile, positioning it as a practical transition fuel for the coming decade.

From our experience, when policy clarity, infrastructure rollout, and financing support move in tandem, operator confidence increases rapidly. Continued collaboration between industry stakeholders and policymakers will be essential to ensure LNG evolves from an emerging alternative into a truly mainstream solution for India’s commercial transport sector.

Also Read: How Battery-as-a-Service Is Reshaping India's EV Economics

With alternative fuels like bio-LNG and hydrogen entering the conversation, how do you see LNG’s long-term role evolving in India’s commercial transport ecosystem?

LNG will continue to play a strong and relevant role in India’s commercial transport, even as other clean fuels like bio-LNG and hydrogen start gaining attention. At this moment, LNG offers a practical balance of lower emissions, long range, and competitive operating costs, which is why fleets are finding it workable in day-to-day operations.

As the wider ecosystem evolves, we expect fuels such as bio-LNG, biomethane, and hydrogen to gradually find their place. What’s encouraging is that the learnings, infrastructure, and safety practices being built around LNG today will naturally support that broader transition whenever the market is ready. We stay closely engaged with industry partners, energy players, and policymakers so we can adapt smoothly as the technology landscape grows.

Meanwhile, we continue to strengthen the LNG ecosystem through driver training, safety programs, and operational support. With more than 1200 drivers trained and ongoing knowledge sessions with fleet operators, confidence in LNG is increasing steadily.

In our view, LNG will remain an important part of India’s clean transport mix for the foreseeable future working alongside emerging fuels as they mature. What matters to us is giving fleets a reliable, lower-emission solution that works on the ground today while staying prepared for where the industry is headed next.