Sales of Natural Gas Fueled Trucks Up Y/Y in August, but Down YTD
NG powered Class 8 truck and bus sales continue, but at a slower pace compared to 2014, as well as when calculated as a percentage of the total market, according to a new report from ACT Research.
The “Natural Gas Quarterly” attributes the rapidly declining cost of diesel with making the return on investment for adoption of natural gas less lucrative. “With the fuel price differential narrowing, the ROI to convert from diesel to natural gas is moving in the wrong direction: payback periods are lengthening,” said Ken Vieth, ACT’s Sr. Partner and General Manager.
He continued, “However, this doesn’t mean the adoption of NG fuel has stopped or that there are no new developments that might lead to a future uptick in NG truck orders. We’ve learned that despite the current fuel price differential, NG infrastructure continues to be built, albeit at targeted locations, and that previous NG equipment purchasers remain committed to the alternative fuel, seeing it as a long-term prospect, not just a short-term reaction to historically high, volatile diesel prices.”
ACT Research sees growth for the adoption of natural gas as a fuel for HD vehicles in the U.S., but doesn’t expect to see double-digit sales expansion on the horizon in the next few years.
Category: Commercial
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
