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CNG & LPG Vehicles Market Has Witnessed A Revolution
The CNG and LPG vehicle market is directly related to the rising gasoline and diesel prices and fuelling the infrastructure for CNG and LPG. The rising oil prices are leading the sceptics to take another look at the formerly ignored alternative automotive fuels and mounting worries over global warming - have all contributed to a sense of urgency to revamp the way vehicles run globally.
In emerging economies like India, China, and Brazil where CNG has a strong hold, the use of CNG in the transportation sector is primarily driven by the environmental and public health imperatives. A large number of metro cities in these countries embarking for cleaner fuel, which results in a significant increase in the number of CNG vehicles leading the CNG vehicle market to witness a strong growth pattern in these regions.
The European market has already witnessed a boom in the alternative fuel vehicle industry with Italy and France trading over 300,000 vehicles, annually. Alternate fuels also offer an opportunity for Original Equipment Manufacturers struggling to meet European Automobile manufacturing Association targets. Liquefied petroleum gas (LPG) is still expected to lead in Europe for the next four to five years, while the compressed natural gas (CNG) network straggles behind in Europe except Italy. The growth outlook is conservative for Europe as it is still on a recovery path and is expected to take substantial time for a complete recovery.
Iran has been the leader in CNG vehicles, but the recent U.S sanctions over nuclear issue has resulted in a slowdown in the automobile production. Hence, there is uncertainty in the outlook.
The natural gas vehicles sales are expected to increase in the U.S., thanks to a convergence of transport fleet owners’ efforts to run cleaner and more affordable fleets, the local state governments action for improving air quality, and a growing commitment to the vehicles which reduces their reliance on foreign energy.
CNG and LPG Vehicle Market by Vehicle Type (Passenger Cars & Light Commercial Vehicles), Fuel Type (CNG & LPG), and Geography (Asia-Pacific, Europe, Americas & ROW) - Industry Trends & Forecasts to 2019
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