Auto component maker Phinia explores making alternative fuel systems in India on rising CNG demand, says CTO

To be clear, Phinia operates in India through a local subsidiary, Phinia Delphi Pvt. Ltd. 

The parent company, which had an annual turnover of about $3.5 billion, is exploring plans to make new fuel systems for two-, three-, and four-wheelers, along with commercial vehicles at its Gurugram facility, Anderson said, adding that the final investment amount could not be disclosed as it was under discussion.

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Anderson said the company viewed India's rising CNG demand as a stepping stone towards adopting alternative fuels that reduce vehicular emissions, such as hydrogen, ethanol and methanol.

"We are interested in the steps that OEs (automakers) appear to be taking toward alternative fuels, in this case CNG. So, we have CNG products and experience as our customers, the OEs, maybe use CNG as a step towards the alternative fuel of hydrogen, to the point where CNG can be supplied, maybe with a 15% hydrogen blend," said Anderson at the Bharat Mobility Global Expo 2025.

CNG adoption in India has taken off due to the affordability of the gas and the ease of access.

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The government's Vahan dashboard for vehicle data showed a consistent increase in the sales of CNG-only vehicles from 166,000 units sold in 2021 to more than 482,000 units in 2024.

"We expect 450,000−500,000 units of CNG vehicles to be sold in FY2025 and 600,000−650,000 units in FY2030. However, to boost the penetration of CNG vehicles, infrastructure and vehicle variant offering issues must be addressed," a Deloitte research report said in June 2024.

The report added that CNG has been extensively adopted in India as an alternative to petrol and diesel because it offers better mileage at about 40-50% lower cost per kilometre and about 5-10% reduced carbon emissions compared with conventional fuels.

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Anderson said the American manufacturer of fuel systems for large and small commercial vehicles is also exploring ways to supply Indian automakers with CNG with a 15% hydrogen blend. Currently, Phinia supplies its fuel systems to about 50 automakers worldwide.

About 15-20% blending of hydrogen in CNG will not force automakers to remake their engines, but it is not known at what stage of blending such changes will have to be made, Anderson said. 

“We don't know. It is somewhere between a low percentage and a hundred per cent…It is an area of development and study for us. We can accommodate about 15-20% of blending without having to change the fuel system components infrastructure on the vehicle. We need to learn where that changes," he said.

Anderson said the origin of power is critical in the global green transition. If the electricity used to power electric vehicles is generated from coal, it is unlikely to reduce carbon emissions in the overall ecosystem, the CTO added.

Phinia aims to reduce these issues, he said and added that the company has recently sold a handful of hydrogen-fuelled vehicles in Europe, which run on similar engines to fossil fuel vehicles, but do not pollute.

“…a light commercial van that we have developed, we have several of them on the road in Europe, running a direct combustion H2 (chemical symbol for a hydrogen molecule) ICE engine. It is a 2.2 litre (engine)," he said. 

In the alternative fuel sector, India has launched a National Green Hydrogen Mission (NGHM) to make the country a hub for manufacturing and exporting decarbonized fuel. 

Derivative products from green hydrogen, such as green ammonia and green methanol, will also be produced. The mission will also generate domestic demand by incentivising consumers to meet minimum usage requirements.

Curbing vehicular emissions is a critical facet of India’s journey towards becoming a net zero carbon emitter by 2070. 

Phinia’s foray into the market to reduce emissions comes as India's vehicle fleets are increasingly switching to electricity. Mint reported on 23 December that India's ratio of fossil fuel-based vehicles to electric vehicles has been falling over the last few years.