Fleets Shy Away From Nat Gas, Unless They Already Use It, While Overall Use Climbs

[kscarbel2]

Transport Topics  /  April 21, 2017

While sales of Class 8 trucks powered by natural gas remain low, U.S. and Canadian natural gas heavy-duty retail sales overall had a healthy start to 2017, boosted mostly from refuse fleets, transit and school bus operators.

For 2016, the natural gas share of the Class 8 truck market was estimated at 3% due to higher new-truck sales and lower natural gas penetration.

“Given relatively low diesel fuel prices and the subsequent price narrower spread between CNG and diesel, payback times remain longer than most truckers’ trade cycles,” said one market analyst. Nonetheless, “The best January in the past three years set up the positive year-to-date February performance. Among truckers, it appears as though the majority of incremental volume came from those who currently have natural gas vehicles and are replacing units or increasing their number."

[kscarbel2]

Natural Gas Truck Sales Strong, but Market Stagnates Overall

Heavy Duty Trucking  /  April 21, 2017

North American natural gas heavy duty retail sales were strong to start 2017, bolstered by refuse fleets, transit, and school bus operators.

Most of the activity seems to be coming from fleets replacing older vehicles or adding more vehicles, helping the natural gas truck industry to record its best January in three years and a positive year-to-date total through February.

Compared to the entire market, however, natural gas truck sales have stalled somewhat, caused by low diesel prices and increased competition from electric and hybrid-electric vehicle options.  

It’s estimated that natural gas vehicles made up only 3% of the market in 2016.

“Given relatively low diesel fuel prices and the subsequent price narrower spread between CNG and diesel, payback times remain longer than most truckers’ trade cycles,” said one market analyst. 

“With the recent news coverage of Nikola Motor Company, Tesla, Toyota, and others, it is important to keep a finger on the pulse of the entire alternative fuels market," he continued. "Whether it is natural gas or hybrid electric, companies need to be well informed of the market options when considering alternatives for their current vehicles.”