Sales of Natural Gas Trucks and Buses Slows
Natural gas (NG) powered Class 8 truck and bus sales have slowed when calculated as a percentage of the total market, according to a new report from ACT Research.
As seen in the original projections, 2015 would see a 5% penetration of NG heavy duty trucks, but based on 2014 actual results and the sharp drop in oil prices starting in Q4’14.
“With the price differential between diesel and natural gas 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.”
Vieth explained that infrastructure build-out continues, as does equipment research and development efforts and financing partnership opportunities. The group does not expect to see double-digit sales expansion on the horizon in the next few years.
What’s more, with the price of oil in the $50 per barrel range, and gas prices at the pump expected to continue softening, the incentive to switch to “greener” forms of fuel may be drying up quickly.
Category: CNG, Commercial
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