LNG Products: Insufficient to Support Heavy Truck Market

www.chinatrucks.com. According to statistics released by China Association of Automobile Manufacturers (CAAM), 43,600 heavy trucks were sold in Oct.2012, falling by 23.41% over Sep. The total sales reached 535.900, falling by 30.34% on a year-on-year basis. The figures have represented the tough condition that the market was experiencing. The expected demand peak has failed the market and no trace of a recovery has been seen. Many manufacturers will unlikely to achieve their annual sales goals.

Under these circumstances, LNG vehicle seems to be the key area for companies to develop. During the Wuhan commercial vehicle exhibition and Auto Guangzhou, which were held recently, many participant manufacturers brought LNG products to the stage. Out of nowhere, LNG heavy truck becomes the hot spot for manufacturers.

LNG products are the primary candidate to develop in the natural gas area. Compared with CNG heavy truck, LNG truck is more energy efficient to meet the demand of customers. However, promotion of LNG products is a problem to be solved ahead. LNG truck is not necessary a key to raise the whole heavy truck market.

LNG heavy truck are faced with insufficiency of gas stations and high costs, meanwhile, increasing rise in natural gas price is also an unfriendly factor for the market. Presently, especially in the east, the amount of gas stations are far from meeting the demand, which has severely affected the promotion of LNG heavy truck. Moreover, the cost of a LNG heavy truck exceeds that of a regular heavy truck by 60,000 or 70,000 Yuan, which places a huge burden on the customers.

It sounds reasonable for manufacturers to bet on LNG heavy trucks due to soaring oil price and emission standard, however, to wager the recovery merely on LNG heavy truck seems to be over optimistic. Though sales may be partially driven by truck in this category, most of the manufacturers only see a slight of ray.

Seen from the product structure, traditional diesel trucks still dominate the market, even for manufacturers who has developed LNG trucks in the early stage, diesel trucks are the primary products. LNG heavy truck shall be seen as a light spot instead of the main driving power because LNG products have not met the wide and consistent demand.

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