According to the Peruvian Automobile Association (AAP), the number of natural gas vehicle (NGV) conversions in Peru reached 24,383 in the first half of 2024, a 10.9% year-on-year decrease.
If the current pace of vehicle conversions continues for the rest of the year, production is expected to reach approximately 50,000 vehicles, down from 56,000 in 2023 and the record high of 74,000 in 2022. AAP attributes the decline in CNG conversions to insufficient public policies encouraging vehicle energy conversions. Furthermore, falling petroleum fuel prices have weakened the incentive for vehicle owners to convert to CNG.
Despite the decline in conversions, NGV users saved a total of 1.443 billion soles in the first six months of 2024 by replacing petroleum derivatives with CNG. This cumulative savings has reached $25.226 billion since NGVs entered the Peruvian market, increasing the purchasing power of NGV owners. As of the first half of 2024, the total stock of vehicles registered for CNG consumption was 325,676, 10.6% higher than the May 2023 figure, and accounting for approximately 9.5% of the national vehicle population.
