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Tata Motors Rolls Out Natural Gas Engine

Zacks Equity Research

Tata Motors Limited (TTM) has launched a new natural gas engine that uses the Westport WP580 Engine Management System (:EMS) of Westport Innovations Inc. (WPRT). The spark-ignited 3.8L turbocharged engine was recently showcased at India's Auto Expo in New Delhi.

Tata Motors is also planning to use the Westport WP580 EMS in a new 5.7L engine later this year. This engine will be aimed at medium-duty vehicles.

The Westport WP580 EMS uses an advanced combustion control technology which provides excellent fuel efficiency and torque and reduces emissions. In fact, it enables vehicles to meet the Euro VI emission standards. Moreover, it provides pricing benefits, enabling natural gas vehicles to be manufactured and sold at lower costs.

India is among the biggest commercial vehicles markets in the world, with one of the largest natural gas light-duty vehicle fleets. It is also one of the fastest growing markets for natural gas vehicles. Thus, the new natural gas engine should help Tata Motors, India's largest automobile company, to acquire a greater share of this lucrative market.

Tata Motors is one of the largest passenger and commercial vehicle manufacturers in India. It is also the fifth-largest truck manufacturer and fourth-largest bus manufacturer in the world. Westport Innovations specializes in natural gas engine and fuel system technologies and aims to reduce emissions and fuel costs of vehicles.

Tata Motors currently carries a Zacks Rank #1 (Strong Buy), while Westport Innovations carries a Zacks Rank #3 (Hold). Some other stocks worth considering in the auto industry are Volkswagen AG (VLKAY) and Dongfeng Motor Group Company Limited (DNFGY). Both Volkswagen and Dongfeng carry a Zacks Rank #2 (Buy).

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