Ecofuel Systems, a leader in the CNG conversion kits, is coming out with electric conversion kits for two-wheelers as its traditional market faces challenges.
19 Mar 2025 | 891 Views | By Shahkar Abidi
In India’s rapidly increasing retrofitting industry, Ecofuel Systems (I) Ltd. is preparing for a new pivot. Best known for its dominance in the compressed natural gas (CNG) vehicle retrofitting space, where it claims a commanding 40% market share, the company is setting its sights on a new frontier: electric two-wheeler ...
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In India’s rapidly increasing retrofitting industry, Ecofuel Systems (I) Ltd. is preparing for a new pivot. Best known for its dominance in the compressed natural gas (CNG) vehicle retrofitting space, where it claims a commanding 40% market share, the company is setting its sights on a new frontier: electric two-wheeler retrofitting.
Founded in 2003, Ecofuel Systems has already sold over one million CNG kits and four lakh sequential kits for vehicles ranging from cars and two-wheelers to buses and boats. It has a long standing tie-up with LOVATO GAS SpA, which is a leading manufacturer of CNG/ LPG kits globally. With a Rs 80 crore revenue and a strong distribution network, the company is looking to capitalise on the increasing demand for eco-friendly mobility solutions.
The move also marks a strategic shift for Ecofuel Systems, as it adapts to shifting tides in the cleanenergy market. The company plans to begin its electric retrofitting operations in two months, pending final approvals and certifications from regulatory agencies. Once launched, the goal is to retrofit 18,000 to 20,000 two-wheelers in the first year, with plans to scale up soon after.
The Economics of Electrification
The company will focus on both the lower running costs as well as the environmental benefits of retrofitting, as urban commuters grapple with rising fuel prices and environmental concerns. For the average consumer, the running cost of an electric two-wheeler is a fraction of its petrol-powered counterpart. "While a petrol bike, at Rs 100 per liter, costs Rs 2-2.5 per kilometer, an electric two-wheeler costs just 10-20 paise per kilometer," said Virendra Vora, Founder and Chairman, EcoFuel Systems.
Ecofuel Systems also aims to leverage its existing infrastructure of over 600 distributors and dealerships, alongside a network of workshops, to accelerate its expansion. This isn’t uncharted territory for the company; its subsidiary, Odysse Electric Vehicles Pvt Ltd., already manufactures electric scooters and bikes, generating Rs 30 crore revenue annually. Ecofuel Systems has built its reputation on innovation in clean energy retrofitting.
Among the recent highlights, the company gained attention after securing a high-profile contract with the Varanasi Nagar Nigam, under India’s Namami Gange Programme. The initiative involved converting diesel-powered boats plying on the Ganges River to CNG—aligning with the government’s push for greener transportation. Similarly, it bagged a contract from the Maharashtra State Road Transport Corporation (MSRTC) to retrofit diesel buses with CNG kits. T
hese successes have bolstered the company’s credibility, but Vora acknowledges that the CNG retrofitting market isn’t as lucrative as it once was. “Most OEMs [original equipment manufacturers], like Maruti Suzuki, now offer factory-fitted CNG options, reducing demand for retrofitting,” he noted. Compounding this, the price gap between CNG and petrol has narrowed, and the 18% GST on CNG kits keeps consumer costs high.
The Technology
Retrofitting a vehicle from petrol to electric involves replacing the engine and transmission with an electric motor and battery pack, alongside upgrading the electrical system. While the process is straightforward for two-wheelers, retrofitting cars remains prohibitively expensive. “Retrofitting a car costs Rs 6-8 lakh, which is not viable for most consumers,” Vora explained. Moreover, the scarcity of charging infrastructure for cars makes twowheeler electrification the more practical solution.
“Since two-wheelers are mostly used for city commutes, users can charge them conveniently at home.” Vora, however, remains clear-eyed about the challenges in the two-wheeler retrofitting market, especially as competitors like Bajaj Auto and potentially TVS Motors enter the CNG two-wheeler market, which will compete with e-bikes. “It’s a good thing—it will help popularise CNG for two-wheelers,” he remarked.
The Road Ahead
For Ecofuel, the shift to electric is as much about adaptation as it is about growth. With millions of twowheelers across India and a growing appetite for costeffective and sustainable transportation, the opportunity is vast. The challenge will be to navigate the complexities of retrofitting while ensuring affordability and scalability for consumers.