More and bigger cars to run on alternative fuel in India

U.S. auto maker General Motors Co.’s Indian subsidiary launched a compressed natural gas (CNG) version of the Aveo sedan earlier this month, marking the first time Indian buyers have had an alternative fuel option for a mid-size car. Rival Maruti Suzuki India Ltd., which sells half the cars in the country across segments, is working on a multi-point fuel injection system for alternative fuels and hopes to launch this in two months. Long considered a source of incremental taxi sales, alternative fuel models–which use CNG and liquefied petroleum gas (LPG) instead of petrol–have been catching the attention of car makers over the past year. Such cars are typically hampered by lack of power. But manufacturers say with improvements in technology, they can also be marketed to value-conscious buyers yet to purchase their first car. Maruti Suzuki plans to have one alternative fuel model car in every segment. (May 24, 2010)