Worried over the the rising costs of petrol and diesel, major car manufacturers are trying to outnumber each other in bringing cars which use alternative fuels such as compressed natural gas and liquefied petroleum gas.

Hindustan Motors and Maruti have launched the LPG and CNG versions of Wagon R and Lancer models, respectively. General Motors had, a few weeks ago, announced its plans to launch the CNG version of Chevrolet Optra.

Alternative-fuel engines will be localised at the companies' plants and will be fitted on the entry and mid-segment models.

The central government is believed to be in the process of extending an eight per cent excise duty concession to small cars being run on fuels such as CNG and LPG.