Blue Energy LNG Truck Sales Surge in South and West India on Back of Strong Infrastructure

Blue Energy Motors stated that its growth in FY25 was most prominent in West and South India, especially in Gujarat, Maharashtra, and Tamil Nadu. These regions benefited from better LNG infrastructure readiness, progressive state-level policies, and stronger industrial freight flows, the company's CEO Anirudh Bhuwalka stated.

In contrast, North and East regions showed slower uptake, primarily due to limited infrastructure and logistical bottlenecks. "However, upcoming LNG infrastructure in select corridors — for instance, in Delhi–Kolkata and Kolkata–Chennai — is beginning to address this gap, and we expect broader regional uptake in FY26," Bhuwalka remarked.

According to him, the heavy-duty trucks industry witnessed a 10% drop in industry volumes compared to the previous year, with the tractor-trailer segment witnessing a 4% drop. Blue Energy Motors, in comparison, achieved a 14% growth over the previous year in the heavy-duty LNG-powered trucks segment. "This growth is primarily fueled by increased awareness among customers about alternate fuel-powered trucks, the Total Cost of Ownership (TCO) advantage of LNG trucks over diesel trucks, and a growing LNG refueling infrastructure."

As per the top executive, macroeconomic factors such as capital outlay by the government eased up in the latter half of FY25, thus creating short-term tailwinds for freight movement and enabling demand for heavy-duty trucks. Rural demand, on the other hand, remained mixed, recovering slowly towards the end of the year. Financing, especially for alternative fuel-powered trucks, remains a challenge and is expected to improve with increased focus from traditional financiers. International stability in natural gas prices between $10/MMBTU to $12/MMBTU bodes well for the domestic natural gas industry and increased adoption of LNG trucks in the country, Bhuwalka noted.

Going into FY26, Bhuwalka said he anticipates a continued shift to higher tonnage vehicles with sectoral growth in e-commerce, mining, and construction. He also expects migration towards alternate fuel-powered trucks in the steel, cement, and e-commerce sectors with the expansion of the LNG refueling network.

Blue Energy Motors is an Indian clean-tech startup pioneering sustainable heavy-duty transportation. Headquartered in Pune, the company introduced India's first LNG-powered heavy-duty truck in 2022, aiming to decarbonize freight mobility. With a manufacturing capacity of 10,000 trucks annually, Blue Energy offers vehicles that reduce CO₂ emissions by up to 30% compared to diesel alternatives. Strategic partnerships, including one with Italy's IVECO Group for LNG engine technology, bolster its innovative approach. Under CEO Anirudh Bhuwalka's leadership, the company plans to expand into electric trucks, targeting sales of 3,000 units in FY26.