Retail Sales of NG Fueled HD Trucks Down 1% YTD
U.S. and Canadian natural gas Class 8 truck retail sales started 2015 with slow growth and are ending the year in the same fashion, according to a recent report from ACT Research.
Not surprisingly, the group attributes the falloff to the continuing decline of diesel prices, making the return on investment for adopting of natural gas less lucrative.
“With the fuel price differential continuing to narrow, 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 supporting a future uptick in NG truck orders.”
Vieth explained, “Despite sequential momentum slowing, with November NG heavy duty retail sales down 28% m/m and y/y, year-to-date volumes stand just 1% below 2014’s levels; ACT’s staff continues to closely monitor industry developments. We’ve learned that despite the current fuel price differential, NG infrastructure continues to be built, albeit at targeted locations, and that existing NG equipment users remain committed to its long-term viability and emission benefits.”
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