Tata Motors Partners with THINK Gas to Boost LNG Infrastructure for Commercial Vehicles

Key Highlights:

• MoU signed on October 30, 2025

• Focus on LNG trucks and refueling corridors

• THINK Gas to offer reliable fuel and pricing

• Tata Motors expands clean fuel portfolio

• Target: 33% trucks on LNG by 2030

Tata Motors, India’s largest commercial vehicle manufacturer, has signed a Memorandum of Understanding (MoU) with THINK Gas to develop liquefied natural gas (LNG) infrastructure for commercial vehicles across India. The agreement, announced on October 30, 2025, focuses on strengthening India’s cleaner fuel ecosystem and promoting sustainable freight transportation.

Partnership Focus and Expansion Plans

The collaboration will focus on identifying key freight corridors and logistics clusters where LNG refueling stations can be set up. THINK Gas, backed by I-Squared Capital, Osaka Gas, and Sumitomo Corporation, will ensure fuel quality, reliable supply, and preferential pricing for Tata Motors customers.

At present, THINK Gas operates 18 liquefied and compressed natural gas stations, with more under development. The company plans to build corridors that connect industrial hubs, agricultural regions, and logistics centers across India.

Why LNG is the Future of Trucking

LNG (Liquefied Natural Gas) is emerging as a cleaner alternative to diesel for long-distance freight movement. It offers:

• Up to 30% lower CO₂ emissions than diesel.

• Reduced particulate matter and nitrogen oxide emissions.

• The ability to travel 600–1,000 km on a single fill due to its higher energy density than CNG.

Currently, India has about 1,500 LNG-powered trucks, compared to 3 lakh diesel trucks sold annually. The Ministry of Petroleum and Natural Gas plans to build 1,000 LNG fuel stations along major highways and industrial routes, with 49 already approved for development by state-run oil companies. The government also aims to power 33% of all trucks with LNG by 2030.

Industry Leaders Speak

Rajesh Kaul, Vice President and Business Head for Trucks at Tata Motors, said that LNG offers a practical solution for long-haul freight as India transitions toward sustainable logistics. He added that Tata Motors LNG vehicles are designed to deliver high fuel efficiency with lower emissions.

Somil Garg, Senior Vice President at THINK Gas, noted that this partnership will help the company scale its national network strategically and support India’s clean energy transition in the commercial vehicle sector.

Growing Competition in the LNG Truck Market

India’s LNG trucking market is becoming increasingly competitive.

• GreenLine Mobility Solutions (Essar Group) currently operates the largest LNG truck fleet in India and plans to deploy 5,000 LNG trucks by March 2025.

• Blue Energy Motors, also associated with Essar, launched India’s first LNG truck in 2022 and has already deployed 500 units across sectors.

• Other major players like Volvo and Ashok Leyland are also entering the LNG truck segment.

• Adani Total Gas has opened its first LNG station and plans 50 more outlets in the next five years, while Indraprastha Gas targets 100 stations by 2030.

Challenges to Adoption

Despite strong interest, the LNG segment faces a few hurdles:

• High upfront cost — An LNG truck, including trailer and registration, costs around ₹85 lakh.

• Limited refueling infrastructure, mostly confined to Gujarat, Maharashtra, Kerala, and Tamil Nadu.

• Financing difficulties — Banks remain cautious, though some NBFCs have started funding LNG vehicles.

Experts believe that government incentives like tax benefits or priority lane access could accelerate adoption.

Tata Motors’ Clean Mobility Vision

Tata Motors, part of the $180 billion Tata Group, holds a 42% market share in India’s commercial vehicle segment. The company has been expanding its clean energy portfolio, offering vehicles powered by battery-electric, CNG, LNG, hydrogen internal combustion, and hydrogen fuel cell technologies.

The announcement follows the company’s internal restructuring, and its commercial vehicle division was renamed Tata Motors Limited, effective October 29, 2025, ahead of its listing on the BSE and NSE.

A Step Toward Greener Freight

Medium and heavy commercial vehicles consume nearly 40% of India’s diesel, and the transport sector contributes 13.5% of national carbon emissions. Experts estimate that switching even 10% of trucks to LNG by 2032 could save $1.5 billion in oil imports.

With the Tata Motors, THINK Gas partnership, India takes another major step toward cleaner, more efficient, and sustainable freight transportation.

Also Read: Highway Infrastructure Bags ₹1.96 Crore Deal to Power Indore’s Electric Bus Revolution Under PM E-Bus Seva Scheme

CMV360 Says

The Tata Motors and THINK Gas partnership marks a big step toward cleaner transportation in India. With plans to build LNG refueling infrastructure across key freight routes, the initiative will support the shift from diesel to sustainable fuel. This move not only reduces emissions but also helps lower oil imports and operating costs, setting a strong foundation for a greener commercial vehicle industry.