China’s new energy vehicles network data shows August natural gas heavy truck production grew by 5.4 times, a single-month record high, reports JRJ.com. They cite market analysis by Zheshang Securities that points to liquefied natural gas (LNG) heavy truck production reaching 93,836 vehicles this year.
Data show that in August, natural gas heavy truck production was 9887 units. From January to August this year, the cumulative production of natural gas heavy truck was 54,725 units, an increase of more than 500%, more than all of 2014 which had the previous best record of 50,000 units.
The natural gas heavy truck market reportedly began to pick up from the end of last year, a view supported by NGV Global advisors, and this upward trend has been sustained. Although the whole Chinese truck industry has been growing rapidly, the NGV growth is phenomenal, in part due to the price differential. Comparing diesel to CNG prices in the province of Shandong, for example, cost saving for comparable vehicles of 136.5 yuan (USD 20.55) per 100 km is possible, sufficient to recover the incremental cost of a natural gas powered truck in less than six months.
China has also tightened its environmental policy, delivering a major catalyst for acquiring NGVs, and has turned promotional focus from new heavy duty diesel to new natural gas trucks. The current development trend indicates that by the end of the 13th Five-Year Plan (2020) the number of LNG-fuelled trucks will exceed expectations, possibly reaching about 700,000 units.
Furthermore, the momentum will by necessity carry through to related industries such as vehicle gas storage, fueling stations, dispensing technology, gas supply and more.