Source: JLC, Shanghai Longzhong Information, BloombergNEF. Note: CNG price in yuan/cubic meter. Gasoline price in yuan/L. 60% is considered a threshold to boost CNGPV development. Provinces in the callout box have average CNG-to-gasoline ratios higher than 60%.
Source: Sichuan Clean Energy Vehicle Industry Association, BloombergNEF.
Source: Domestic and International Oil and Gas Industry Development Report 2010-2018, Sichuan Clean Energy Vehicle Industry Association, BloombergNEF. Note: BloombergNEF took the average of two data sources as the assumed fleet size.
-
China’s fleet of passenger vehicles powered by natural gas vehicles (NGV) reached 5.9 million in 2019, representing more than 80% of total natural gas vehicles in the country, but just less than 3% of China’s total passenger vehicle fleet. Passenger NGVs are mostly retrofitted from originally gasoline-fueled vehicles.
-
Early development (1960-1995): Passenger NGVs began to emerge in Sichuan province due to the lack of oil supply but an abundance of natural gas. The fleet gradually expanded into other gas-rich provinces.
-
Demonstration and promotion (1996-2000): Local governments began to pay more attention to NGVs as a cleaner energy source vehicle and started to promote their use.
-
Early adoption (2001-2010): Passenger NGVs and refueling stations began to spread nationwide on the back of double-digit economic growth.
-
Fast expansion (2011-2014): The passenger NGV fleet size increased rapidly with a growth rate above 40% for four consecutive years, mainly driven by high gasoline prices.
-
Significant slow-down (2015-present): Growth plummeted after 2015 as policy support receded and economic gains slowed. Consumer preferences also played a role as weaker performance and less trunk space made passenger NGVs less attractive.