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Tata Motors and THINK Gas Team Up for LNG Truck Network

  •  4 min read
  •  1,011
  • 31 Oct 2025
Tata Motors and THINK Gas Team Up for LNG Truck Network

Tata Motors has signed a deal with city gas distributor THINK Gas to build out India’s Liquefied Natural Gas (LNG) network for heavy-duty and long-haul trucks. The memorandum of understanding (MoU), inked on October 30, 2025, could mark a major step forward in making freight transport cleaner and more cost-efficient.

For years, the missing link has been obvious - a dependable LNG refuelling network. Without it, most fleet operators have continued to use diesel, despite rising fuel prices and tighter emission regulations. This new tie-up is meant to change that.

Could this partnership finally get LNG trucks rolling across India’s highways?

Under the agreement, Tata Motors and THINK Gas will map key freight corridors, logistics parks, and industrial zones where new LNG stations can be established. Tata Motors contributes its on-the-ground understanding of truck operations and fleet demands, while THINK Gas focuses on the infrastructure, including supply lines, refuelling facilities, and quality control.

Backed by I-Squared Capital, Osaka Gas, Sumitomo Corporation and Konoike Transport, THINK Gas already runs 18 LCNG (Liquefied and Compressed Natural Gas) outlets, with several more under development. Its next big project is a corridor that links export hubs, industrial belts, warehouses and agri-supply chains - effectively an “LNG highway” for freight.

Fleet owners operating Tata Motors’ LNG trucks are expected to receive preferential fuel prices, a move that could finally make LNG a financially viable alternative to diesel.

"Through this partnership with THINK Gas, our goal is to strengthen ecosystem readiness, ensuring reliable access to refuelling infrastructure and enabling fleet operators to adopt LNG with confidence,” said Rajesh Kaul, Vice President and Business Head – Trucks, Tata Motors.

THINK Gas echoes the sentiment. "Partnering with Tata Motors, a leader in advancing alternate-fuel mobility, will help us strategically scale our expansion," said Somil Garg, Senior Vice President and Business Head (LNG Fuel).

India’s trucking sector is responsible for one-third of all CO2 emissions in making a cleaner fuel choice critical. LNG sits neatly in the middle ground. It burns cleaner than diesel, produces fewer pollutants, and still offers extended range and solid payload capacity. Over time, operators can also expect lower running costs. The hurdle, however, has always been the same: a sparse refuelling network.

This collaboration could fix that. Tata Motors brings vehicle technology and customer reach, while THINK Gas delivers distribution expertise. Together, they could remove the biggest barrier to LNG adoption - infrastructure uncertainty.

The initiative also aligns with Tata Motors’ broader multi-fuel roadmap, which includes electric, CNG, LNG, hydrogen ICE and fuel-cell options. The company already builds LNG-powered trucks, but limited access to fuel has kept the adoption muted.

A dependable network of LNG stations across major highways would make long-haul trucking in India more affordable, cleaner, and easier to manage. Fleet operators can lower emissions without compromising efficiency, while logistics companies can gain an edge through greener operations.

For THINK Gas, the partnership marks a significant step into the expanding transport and energy space. For Tata Motors, it strengthens its role as a frontrunner in the shift toward cleaner commercial vehicles.

The effort also aligns neatly with India’s broader push to decarbonise freight transport and encourage the use of low-emission fuels along key logistics corridors. Essar Group already operates about 5000 LNG vehicles. Volvo and Ashok Leyland will soon join the segment. Adani Total Gas intends to build 50 LNG stations.

As emission norms tighten and clients demand lower-carbon logistics, LNG could serve as a bridge - the step between diesel and fully zero-emission transport.

India’s roads are lined with diesel pumps today. If Tata Motors and THINK Gas can create a comparable LNG network, the country’s transition to cleaner freight could accelerate faster than many expect. The real question now is: can they bring this plan to life and put LNG trucks firmly on the map?

Sources

Economic Times
Motor India Online
Business Standard
Business Standard
NITI Aayog
Manufacturing Today
Autocar Professional

This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.

Investments in securities market are subject to market risks, read all the related documents carefully before investing. Brokerage will not exceed SEBI prescribed limit. The securities are quoted as an example and not as a recommendation. SEBI Registration No-INZ000200137 Member Id NSE-08081; BSE-673; MSE-1024, MCX-56285, NCDEX-1262.

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