CNG market analysis

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Market Study for potential of CNG use in Private Vehicles (Incl. Govt. vehicles) in Delhi

Text of CNG market analysis

Market Study for potential of CNG use in Private Vehicles (Incl. Govt. vehicles) in Delhi

Qualitative Phase Findings Image & Perception of CNG with Private Car OwnersPresented To:Indraprastha Gas Limited BIRD IMRB International Presented by:Research-based Consultancy for B2B and technology Markets

Background IGL is promoted by BPCL, GAIL, Government of Delhi and Financial Institutes IGL is the supplier for PNG (Piped Natural Gas) for Domestic use and CNG (Compressed Natural Gas) in Delhi city.

Till now, CNG was allowed only for Commercial Vehicles (Buses, Three-wheelers, Taxis), now RTO has allowed for private vehicles as well. IGL is currently supplying approximately 7 Lac SCMD of CNG in Delhi, but has the capacity to supply up to 14 Lac SCMD approximately.2

Need for the Study With the capability to supply more CNG to the city,IGL plans to introduce CNG for Private Vehicles and Government Vehicles in Delhi With the advent of Delhi Metro Rail Network, the use of commercial vehicles for public transport shall be affected, therefore other avenues for CNG use have to be explored

Targeting private vehicle segment thus expands the target market for CNG To enable development of clear future strategy, IGL would like to assess the image of CNG in consumer mind, as well as gauge the potential demand in this segment.3

Study Design Study is divided in Two Phases Qualitative Phase I: Attitude & Perception Towards CNG in

Private Car Owners in Delhi Quantitative Phase II: Demand Estimation for CNG in Private

Car Owners in Delhi

The current presentation covers Phase I of the Study


Objectives: Phase I Objectives of Phase I are: Level of Awareness of CNG as a fuel option among private car

owners Level of Awareness of maintenance and operation of CNG run

vehicle Attitudes & perception (including misconceptions) towards CNG as a

fuel option & comparison to other fuels Strengths & Weaknesses of CNG as a fuel option Awareness & Attitude towards CNG kits and conversion Level of awareness & attitude towards cost economics of CNG as

a fuel vis a vis other options Current level of satisfaction and future expectations of services

available at CNG filling stations5

Methodology: Phase I Focus Group Discussions: Specialized Qualitative Research Technique to enable brainstorming & exchange of ideas on a concept Executed among private car owners of different types of cars

(small car, medium cars and big cars or high end car owners) Highlight the issues related to awareness, perception and customer desires in terms of service requirements at the filling stations

Depth Interviews: Semi-structured face to face discussions to uncover issues related to CNG & its usage Conducted with various influencer segments CNG kit

dealers/mechanics, government officials & OEMs6

Methodology: Focus Group Discussion A focus group is a specialized qualitative research technique 8-10 persons of similar demographic profile are brought together to

discuss and express their opinions on specified issues These persons are first screened through pre-determined recruitment criteria to enable a relevant discussion

For these FGDs, the selection criteria were car segment, kilometers driven per month, age of car and employment (salaried vs. business) segment Persons of similar criteria are group together for separate (7 in our case) FGDs

Moderator(s) guide and facilitate the discussion through an

unstructured guide covering the concept & related issues being tested/exposed for opinion of the respondents Focus groups bring out spontaneous reactions, opinions and unbiased views of the target group, to get a clear picture of image & perception on the discussion concept/issue These opinions/ideas can be validated for a large universe through a quantitative approach which derives cues from the FGDs7

Methodology: Recruitment Criteria for Focus Groups The FGDs for this study related to gauging current image of CNG as a fuel and reaction to its usage in private car segment The selection criteria, therefore, for the participants was: Fuel Only petrol vehicle owning persons Car Segment Small Car Owners(Maruti 800 owners) Mid Segment I (Zen, Alto, Santro, Matiz, Wagon R, Indica, Uno) Mid Segment II (Esteem, Palio, Siena, Indigo, Corsa, Accent, Ikon) High End Segment (Lancer, Astra, City, Sonata etc.) Age of Car - 3 years Kilometers driven per month 2000km (heavy users) Employment Self employed vs. Salaried

Permutations & combinations of the above criteria (explained in sample spread) were taken to see variation in ideas, opinions & perception8

Sample SpreadFocus Group Discussions:Car Segment Classification VariablesBusinessman/Trader with 2000km/month) Salaried person with >3 year old vehicle (light user 3 year old car (moderate user 1000 2000 km/month) Mid Segment - I

FGDs1 1 1 1 1 1 1 7 9

Small Car

Salaried person with