The global compressed natural gas (CNG) vehicles market to grow at a CAGR of 4.9% during the period 2017-2021.
This report, Global Compressed Natural Gas (CNG) Vehicles Market 2017-2021, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market.
The latest trend gaining momentum in the market is growing use of CNG in luxury vehicles. The adoption of CNG in the luxury vehicles segment is high. In 2017, Audi offers A4 Avant g-tron, which can be run on CNG or gasoline. Audi A4 Avant g-tron is equipped with 2.0 turbo fuel stratified injection (TFSI) engine, oducing 170 HP power, generating a maximum torque of 270 Nm. Audi has altered the pistons and valves of the model, specifically for gas operation, and to ovide very low comession ration adequate for CNG vehicles.
According to the report, one of the major drivers for this market is growth in CNG market in APAC. The demand for diesel in China has declined since 2014, and there is an increasing demand for CNG and LNG powered vehicles in China. In 2013, there were approximately 250,000 NGVs in the commercial industry, mainly confined to heavy duty trucks and commercial buses.
Further, the report states that one of the major factors hindering the growth of this market is huge unorganized aftermarket for CNG vehicles in India. The aftermarket for CNG kits is a highly unorganized sector. In June 2016, the government of Delhi imposed a temporary ban on the endorsement of retrofitted CNG in passenger cars. After this interim court order, the Department of Transport in Delhi banned retrofitting of CNG conversion kits in used cars mainly due to safety related concerns. The State Transport of Delhi demanded that CNG vehicles, which are available in the aftermarket to be certified by authenticated authorities. CNG is a highly inflammable fuel, and the kits were deemed unsafe to be used in cars.