AAP: In the first half of 2024, a total of 24,383 vehicles were converted to VNG

Announcement Automotive Association of Peru

“The pace of vehicle conversions to VNG registered a contraction during the first half of 2024 compared to the similar period last year,” as stated by the Automotive Association of Peru (AAP) in its latest report: “Vehicular natural gas market during the first half of 2024.”

According to Infogas figures, it is specified in the document prepared by the Economic Studies and Statistics Management that, “the number of VNG-activated vehicles (converted and new) during the first six months of this year totaled 25,004 units, lower by -10.3 % compared to the same period in 2023.” In addition, it was observed that “the number of vehicles converted to VNG in the period analyzed reached 24,383 units, showing a drop of -10.9% at an annual rate, while the number of new vehicles to VNG stood at 621 units, reaching a advance of 26.5%. If the rate of conversion of vehicles to natural gas continues in the remainder of the year, it would be expected to close at around 50 thousand units, below the figure for 2023 (56 thousand units) and the historical record for 2022 (74 thousand units)”.

The decrease in the number of vehicles converted to CNG during the first part of 2024 would be explained by the still insufficient comprehensive and efficient public policies that encourage the conversion and/or transformation of the vehicle energy matrix towards an environmentally responsible one. Among the main advantages of using VNG, indicated the AAP, is that this fuel reduces polluting emissions, improving the quality of life of the population, and also contributes directly to the reduction of global greenhouse gas emissions. Likewise, he added, another benefit is the savings generated for the user thanks to the lower cost of NGV compared to petroleum-derived fuels. On the other hand, the automotive union maintained, an additional element that influenced the result would have been the fall in the prices of fuels derived from petroleum, which reduced the strength of the conversions.

“It is estimated that NGV users have obtained savings for a total of S/ 1,443 million during the first six months of 2024 by having used said fuel instead of petroleum derivatives. Likewise, since NGV was introduced in the Peruvian market, the accumulated savings totaled S/ 25,226 million, a balance that has directly benefited people with natural gas vehicles, increasing their purchasing power,” detailed the AAP.

It is necessary to mention that the number of vehicles that register VNG consumption, which represent the active vehicle fleet of said vehicles, closed the first half of 2024 with a total stock of 325,676 units, exceeding by 10.6% that reported in the same month of 2023. It should be noted that, according to 2023 figures, of the total national vehicle fleet, around 9.5% corresponds to vehicles that consume natural gas.

Likewise, the Automotive Association of Peru recalls that our country has a considerable proven reserve of natural gas, which ensures its supply, so if the distribution of said hydrocarbon is massified, dependence would be reduced. to fuels derived from petroleum, avoiding being exposed to fluctuations in international crude oil prices. Therefore, the State's efforts must be aimed at enacting measures that promote the distribution, transportation and marketing of natural gas.

Finally, for the automotive industry, it is vital that the State assumes a leading and more active role in the massification of natural gas, through an articulated strategy that manages to expand the NGV ecosystem, where not only conversions are promoted but also the network of charging stations, and that involves the participation of the private sector, providing the necessary incentives so that through public-private investment mechanisms, and the necessary regulation and supervision, compliance with the commitments assumed therein is ensured.

Read the full report here.