India's largest commercial vehicle manufacturer signs MoU to strengthen refueling network as industry pushes for cleaner freight transportation amid growing competition
30 Oct 2025 | 5119 Views | By Angitha Suresh
Tata Motors has entered into a partnership with THINK Gas to develop liquefied natural gas (LNG) infrastructure for commercial vehicles across India. The memorandum of understanding, announced October 30, 2025, aims to accelerate the adoption of LNG-powered trucks for long-distance freight transportation.
The collaboration focuses on identifying freight corridors ...
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Tata Motors has entered into a partnership with THINK Gas to develop liquefied natural gas (LNG) infrastructure for commercial vehicles across India. The memorandum of understanding, announced October 30, 2025, aims to accelerate the adoption of LNG-powered trucks for long-distance freight transportation.
The collaboration focuses on identifying freight corridors and logistics clusters for LNG infrastructure expansion. THINK Gas, backed by investors including I-Squared Capital, Osaka Gas, and Sumitomo Corporation, will ensure fuel quality standards and supply reliability while offering preferential pricing to Tata Motors customers.
LNG trucking represents a growing segment in India's commercial vehicle market as companies seek alternatives to diesel fuel. LNG, natural gas cooled to liquid form at extremely low temperatures, provides higher energy density than compressed natural gas (CNG), enabling trucks to travel 600-1,000 kilometers on a single fill. The fuel produces approximately 30% lower carbon dioxide emissions compared to diesel, along with significant reductions in particulate matter and nitrogen oxides.
India currently operates approximately 1,500 LNG-powered trucks, a fraction of the 300,000 medium and heavy-duty diesel trucks sold annually. The Ministry of Petroleum and Natural Gas plans to establish 1,000 LNG stations along major highways and industrial areas, with 49 stations already directed for development by state-run oil companies. The government aims to power 33% of trucks with LNG by 2030.
Rajesh Kaul, Vice President and Business Head for Trucks at Tata Motors, stated that LNG presents a solution for long-haul trucking as India advances toward sustainable freight movement. The company has developed vehicles designed to deliver fuel efficiency and reduced emissions.
Somil Garg, Senior Vice President at THINK Gas, said the partnership would help strategically scale the company's expansion plans. THINK Gas currently operates 18 liquefied and compressed natural gas stations, with additional facilities under development. The company's proposed corridor will connect industrial hubs, agricultural regions, and logistics centers across the country.
The partnership comes as competition intensifies in India's emerging LNG truck market. GreenLine Mobility Solutions, part of the Essar Group, operates the majority of LNG trucks currently on Indian roads and plans to deploy 5,000 vehicles by March 2025. Blue Energy Motors, also associated with Essar, launched India's first LNG trucks in September 2022 and has deployed 500 vehicles across various sectors.
Major manufacturers including Volvo and Ashok Leyland have announced plans to enter the LNG truck segment. Adani Total Gas has commissioned its first LNG station and plans to build 50 retail outlets over the next three to five years. State-run Indraprastha Gas aims to establish 100 LNG stations by 2030.
The expansion faces challenges including higher upfront vehicle costs compared to diesel trucks. An LNG truck typically costs around 85 lakh rupees including trailer, insurance, and registration fees. Limited refueling infrastructure remains a constraint, with existing terminals concentrated in Gujarat, Maharashtra, Kerala, and Tamil Nadu.
Financial institutions have shown initial hesitancy toward LNG vehicle financing, though some non-banking financial companies have begun funding these vehicles. Industry analysts suggest widespread adoption will require continued infrastructure development and potentially government incentives such as tax reductions or priority lane access for LNG vehicles.
Tata Motors, part of the $180 billion Tata Group, maintains a 42% market share in India's commercial vehicle segment. The company has expanded its alternative fuel portfolio to include battery electric, CNG, LNG, hydrogen internal combustion, and hydrogen fuel cell technologies.
The announcement follows recent corporate restructuring at Tata Motors. The company's commercial vehicles division changed its name to Tata Motors Limited effective October 29, 2025, with equity shares pending listing on the Bombay Stock Exchange and National Stock Exchange of India.
Medium and heavy commercial vehicles currently consume approximately 40% of diesel fuel in India. The transportation sector accounts for 13.5% of the country's carbon emissions, with heavy-duty transport identified as the largest contributor to urban air pollution. Industry estimates suggest that even a 10% switch from diesel to LNG by 2032 could reduce India's oil import bill by $1.5 billion.