According to our report, with the tightening of environmental protection policies and the escalating demand for energy structure optimization, Brazil has recently witnessed a boom in the retrofitting of CNG (compressed natural gas) and LPG (liquefied petroleum gas) vehicles. The dual-driven development of government incentives and enterprise collaboration has accelerated the industry's rapid growth. The latest data reveals that there are currently 302 LPG retrofitting plants in Brazil, with an average annual growth rate of 350,000 CNG vehicle retrofits. The commercial vehicle retrofitting market is expected to surpass US$250 million by 2025.
Many local governments have launched special support policies. The "Calculate the Costs, Use CNG!" campaign launched by Amazonas State provides a subsidy of R$4,000 for modified vehicle owners, with a total investment of R$1.2 million. At the enterprise level, Comgás, in collaboration with Tupy and other companies, has promoted the conversion of diesel vehicles to CNG. After modification, the carbon dioxide emissions of the vehicles have been reduced by 25%, particulate matter emissions have been nearly eliminated, and the operating cost per kilometer has been reduced by 30% compared to diesel vehicles.
The Brazilian Ministry of Transportation stated that it will continue to improve the gas refueling infrastructure and expand the promotion of CNG/LPG retrofitting for heavy-duty vehicles in the future, in order to facilitate the achievement of decarbonization goals in the transportation sector.
