LNG Heavy Duty Trucks Become Stronger Competition Next Year

“At this time, users have come to consult LNG (liquefied natural gas) heavy trucks. After hearing such a high price, they all walked away.” Recently, a heavy truck dealer in Xinjiang told commercial car news reporters.

High prices make users hesitant, and the pace of heavy truck companies entering the field of natural gas heavy trucks is getting more and more urgent. As early as 2005 and 2006, Shaanxi Heavy Duty Truck and Valin Motors brought natural gas heavy trucks to the market. In April 2008, China National Heavy Duty Truck requested service providers to prepare for natural gas heavy truck services at the “Love People” service conference, which revealed its intention to develop natural gas heavy trucks.

At the 2009 CNHTC Business Conference, natural gas vehicles were once again receiving attention. Cai Dong, general manager of CNHTC, stated: “The natural gas heavy truck is the focus of the development of heavy-duty trucks next year. The company has already communicated with Xinjiang Guanghui, and the other party has The plan to purchase natural gas heavy trucks ."

At this point, Dongfeng Commercial Vehicles, China National Heavy Duty Truck , Foton Auman, SAIC Iveco Hongyan, Shaanxi Zhongqi, Hualing and many other mainstream heavy truck companies already have natural gas heavy trucks. Xinjiang, which is rich in natural gas resources, has naturally become the first choice for all parties to develop LNG heavy trucks.

The Xinjiang Guanghui Group, which has been committed to nurturing the LNG heavy truck market, is also ambitious: “Our goal is to build a gas station network that meets major highway transportation routes in Xinjiang within the next 3 to 5 years.” Xinjiang Guanghui LNG Zhang Shugang, deputy general manager of Development Co., Ltd., said.

Unpredictable capacity

Many companies have joined the LNG heavy truck market in Xinjiang. How large is this market?

“The LNG heavy truck is still in its early stages of development. With the gradual development of gas filling stations, the development of gas filling stations in Xinjiang is mainly in eastern Xinjiang and northern Xinjiang, especially in the three eastern counties (Fuyun, Qitai and Altay.) ), and the gas station in southern Xinjiang is less.” Chen Xin, sales manager of Xinjiang Yixin International Economic and Technical Cooperation Co., Ltd. said: “Because it is in the initial stage of listing, LNG heavy truck price is high, 8 to 10 million more expensive than diesel vehicles. Yuan is difficult for users to accept, but this year Xinjiang has a large number of projects, including the country’s investment in the construction of railways and the development of many new minerals, which are positive for the development of LNG heavy trucks while driving the sales of diesel vehicles, but it is still difficult to estimate the future. How much demand is there for LNG heavy trucks? It should be noted that dealers should guide users' needs and help them with their calculations. Some users do not have to account for the cost of the entire life cycle but only pay attention to the cost of car purchases. It is known that LNG heavy trucks cost 8 to 10 thousand yuan, but they do not know why they are expensive."

Jia Xinsheng of Xinjiang Hualing Automobile Sales Co., Ltd. also holds the same view: “It is not yet easy to judge how large the market capacity of LNG heavy trucks in Xinjiang is.”

Compared to the prudence of dealers, Xinjiang Guanghui, as an LNG supplier, is full of confidence.

“Our LNG heavy truck project started in March this year. Through the promotion and promotion of large-scale transportation companies, it has now grown to more than 300. In addition to safety and environmental protection, LNG's greatest advantage is its good economic performance. In contrast, LNG can reduce fuel costs by 40%, which means that it can reduce transport costs by 15%, which is very attractive.” Zhang Shugang said.

It is understood that at present, Xinjiang Guanghui directly purchases LNG heavy trucks from various heavy truck companies or dealers and sells them to users. In response, Zhang Shugang said: “The LNG heavy truck market has just started and is in a transitional period. The models and prices are first communicated to users through Guanghui. From initial intention to purchase, users need time to consider, so Guanghui first bought the car. When the user really approves it, they can purchase it directly from the dealer. Our most important task is to open the LNG market and expand sales of LNG."

For the capacity of the Xinjiang LNG heavy truck market, Zhang Shugang said: “Transportation companies have plans to renew vehicles every year, and Xinjiang’s heavy trucks are updated at an annual rate of no less than 20,000. In addition, in Xinjiang, many heavy trucks are engaged in the transportation of coal and ore, and their use environment is harsh. ,We have shortened the vehicle renewal period.A lot of the users we talked about today are in this situation.They will have an update plan next year and LNG heavy trucks can take the opportunity to be included in their consideration.After understanding the benefits of LNG heavy trucks, I think these users will in the future Gradually favor LNG heavy trucks."

As an important natural gas engine manufacturer in China, relevant persons of Shanghai Diesel Engine Co., Ltd. stated that “Xinjiang is a resource market, and the mining of abundant mineral resources requires a lot of mechanical equipment; the improvement of roads in southern Xinjiang, the expansion of railways, and the east-west transportation The construction of the subsidiary lines and Kazakhstan natural gas pipelines to Xinjiang and other projects will require heavy trucks. In particular, the construction of the 4 largest coal chemical industry bases (including supporting facilities) will greatly stimulate the demand for the heavy truck market, resulting in heavy truck demand. At around 2,500 to 3,000 vehicles, the current demand for natural gas heavy trucks is about 1,000. With the popularity of refueling networks in the coming years, LNG heavy trucks will attract more users."

In addition, the reporter was informed that LNG vehicles have the advantage of a longer driving range than ordinary gas vehicles. “Each tank of LNG is available for vehicles traveling between 400 and 500 kilometers, and every six tanks of common gas is available for vehicles traveling about 230 to 270 kilometers. It can be seen that LNG has greatly improved the driving range of vehicles.”

Multi-brand competition helps lower prices

Although LNG heavy trucks have the advantage of cost, they are not enough to squeeze the share of diesel heavy trucks in a short period of time.

Due to the early entry time, Shaanxi Automobile's advantage is more obvious in the current LNG heavy truck market in Xinjiang. "Shaanxi LNG heavy truck is a large horsepower segment, previously a maximum of 280 horsepower, now is 380 horsepower. High-powered models in line with the characteristics of the market in Xinjiang." Chen Hao told reporters.

"In addition to the engine horsepower, we must also consider various factors such as vehicle configuration and adaptability. As to which brand is the most popular in the future, this depends on the degree of user acceptance." Jia Xinsheng said.

“In this market, Shaanxi Automobile has more advantages. It has been ahead of time to launch LNG heavy trucks, and it has been working with us earlier. It has proven that Shaanxi Gas's natural gas heavy trucks are good and users are welcome. At the same time, we have signed agreements with Dongfeng Commercial Vehicles. In addition to the car purchase agreement, China National Heavy Duty Truck also provided several prototypes. In addition, because of the different inclinations of the users, we are also communicating with FAW Jiefang and Hualing Motors. We would like to contact more LNG heavy truck manufacturers throughout the country. They have their own strengths, and they can complement each other. On the other hand, this can also create a relative competitive situation that is conducive to the promotion of vehicles, especially to lower prices and improve user acceptance," said Xinjiang Guanghui.

Refueling and after-sales service is a top priority

"To achieve LNG heavy truck capacity, the construction of filling stations and after-sales service network is very important." Chen Yan said: "I have done many years of sales, many users consulted LNG heavy trucks, but in the end did not form a purchase Because this model is affected by many factors, especially the difficulty in refueling. I have just returned from business trips in the east, north and south of Xinjiang. I have seen two to three kilometers of vehicles queued up for refueling."

At present, Xinjiang Guanghui is working to solve the problem of difficult filling. “Xinjiang Guanghui has established more than 30 LNG refueling stations, mainly in Altay leading to Urumqi, Wucai Bay leading to Urumqi, Manas, Shihezi, some Urumqi local transportation routes, and some major mining areas (such as In addition to the concentrated areas such as iron ore bases, coal bases, etc., the supply lines for natural gas continue to expand. Since LNG can be converted into CNG (compressed natural gas), some gas stations can be built during our construction process. The combined establishment of stations (ie, L-CNG refueling stations) mainly caters to the needs of taxis and buses in the city, while the LNG stations are mainly used for the refueling of large cargo transporters and intercity buses. Zhang Shugang told reporters.

In addition to difficulty in refueling, the after-sales service of LNG heavy trucks also needs to be solved.

“The construction of LNG heavy trucks and diesel heavy trucks is different. Gas engines are equipped with gas supply systems and on-board gas cylinders. In addition, the follow-up services of engine manufacturers and OEMs need to be strengthened. Although heavy truck companies now have maintenance outlets throughout the country, There are not many LNG heavy truck repair capabilities, so problems need to be handled by the head office.Of course, the current service network is under construction, including a joint after-sales service system established by vehicle manufacturers, engine plants, and gas providers. In Xinjiang, the prior service network focused on Urumqi, and then built repair stations and related personnel on the main LNG heavy-duty roads, said Zhang Shugang.

Shangchai also stated that Shangchai and all supporting heavy truck companies have implemented service authorizations, and wherever the vehicles are sold, the service will follow. At the same time, Shangchai has offices in Xinjiang all year round, responsible for the service guarantee in the region, and is equipped with engineers to hold irregular technical training in the region to improve regional service maintenance capabilities.

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