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In May, sales of natural-gas-powered heavy-duty trucks surged 84% to 21,000 units! Jiefang and Sinotruk are vying for the top spot, while JAC and Foton lead the growth.

Release Date:

2024-06-17

In March and April, the natural-gas‑powered heavy‑truck market surged by 208% and 160% year over year, respectively, making it the most robust segment during this year’s peak “Golden March, Silver April” season in the heavy‑truck industry—outperforming even the currently more high‑profile new‑energy heavy‑truck market.

In May, new-energy heavy-duty trucks continued the robust momentum of doubling year-on-year growth seen in the first two months. Will the natural-gas heavy-duty truck market deliver even more impressive results?

Please see the analysis report from First Commercial Vehicle Network.

In May, sales reached 20,900 units, up 84% year over year, marking the third consecutive month with monthly sales exceeding 20,000.

According to end‑user sales data compiled by the First Commercial Vehicle Network—based on compulsory traffic insurance records and excluding exports and military vehicles—domestic natural‑gas heavy‑truck sales reached 20,900 units in May 2024, down 21% month over month compared with April but up 84% year over year. Although the year‑on‑year growth rate has moderated from last month’s 160%, an 84% increase still qualifies as a substantial surge, underscoring the continued robust momentum in the natural‑gas heavy‑truck market. With this result, the current upward trend that began in December 2022 has now extended to an 18‑month streak of consecutive growth. Notably, while May’s sales of 20,900 units represent a slight pullback from March and April, they remain at historically high levels. As of May 2024, there have been seven months in which natural‑gas heavy‑truck sales exceeded 20,000 units, with five of those occurring in the past nine months, highlighting just how buoyant the gas‑powered heavy‑truck market is today (see chart below).

As evidenced by the monthly sales trend chart for domestic natural‑gas‑powered heavy trucks over the past few years, the red bars representing 2024 are higher than those of any comparable period in previous years—particularly in March through May, when the gap is especially pronounced. According to observations from First Commercial Vehicle Network, the domestic heavy‑truck market had already cooled markedly by the end of 2023, and demand at the retail level remained lackluster in 2024 as well (with year‑on‑year declines recorded in two of the first five months, and cumulative sales from January to May down 6% compared with the same period last year). Against a backdrop of persistently weak freight markets and broadly constrained overall demand, natural‑gas‑powered heavy trucks have nonetheless maintained robust growth rates for several consecutive months, driven by low freight rates and low gas prices. This clearly demonstrates that the current boom in the natural‑gas‑heavy‑truck segment is not mere hype but a genuine upturn.

Meanwhile, another major factor influencing the natural‑gas‑powered heavy‑truck market—natural gas prices—remained favorable in 2024. In December 2023, the average LNG price hovered around RMB 6,000 per ton, significantly eroding the cost‑effectiveness advantage of gas‑powered heavy trucks by year’s end. In January 2024, prices dipped slightly to about RMB 5,300 per ton, and from February through April, wholesale LNG prices continued to decline, reaching a low of just over RMB 4,000 per ton in April. By late April, prices began to rebound, with the average in May settling at roughly RMB 4,300 per ton—a modest increase from April but still a relatively attractive level compared with late last year. This pricing environment has provided a positive boost to demand for gas‑powered heavy trucks; consecutive monthly sales volumes exceeding 20,000 units over three months underscore the significant impact of gas prices on this segment.

From the perspective of end‑user sales regions, from January to May 2024, natural‑gas‑powered heavy trucks were registered and put on the road in all 31 provinces, municipalities, and autonomous regions across China (with Tibet also registering its first such vehicles in May). However, regional distribution remains highly uneven: resource‑rich logistics hubs such as Hebei, Shanxi, Shandong, and Henan account for the majority of end‑user sales (as shown in the chart below). In the first five months of this year, Hebei and Shanxi ranked first and second, with market shares of 17.7% and 16.7%, respectively, registering 16,400 and 15,500 natural‑gas‑powered heavy trucks. Shandong, Henan, Ningxia, and Sichuan followed in third through sixth place, with 8,663, 8,080, 6,699, and 5,557 units registered during the same period, representing 9.4%, 8.7%, 7.2%, and 6.0% of total sales, respectively. Meanwhile, Liaoning, Xinjiang, Shaanxi, Jiangsu, and Inner Mongolia—ranked seventh to eleventh—each recorded more than 2,000 registrations in the first five months, with market shares exceeding 3% in every case.

(Note: Others include Jilin, Tianjin, Shanghai, Guizhou, and other provinces, autonomous regions, and municipalities.)

As shown in the chart, not all provinces saw year-on-year growth in natural‑gas heavy‑truck registrations from January to May this year; Xinjiang, for instance, experienced a marked decline during the same period. Of the roughly 52,000 additional natural‑gas heavy trucks registered nationwide from January to May 2024, the bulk of the increase was concentrated in Hebei, Shandong, Henan, Sichuan, Liaoning, and other regions. Hebei alone accounted for over 10,000 new registrations, while Shandong and Henan added more than 8,000 and nearly 6,000 units, respectively. In terms of growth rates, many provinces—including Shandong, Hebei, Henan, Sichuan, Liaoning, Inner Mongolia, Jiangsu, Gansu, Anhui, Guangdong, and Chongqing—outpaced the overall market’s expansion, with Hebei, Shandong, Henan, Liaoning, Jiangsu, Guangdong, and Anhui posting increases of 283%, 1,409%, 287%, 567%, 1,166%, 3,494%, and 3,471%, respectively. Moreover, beyond the top fifteen provinces by sales volume, other regions collectively contributed more than 7,000 additional vehicles, underscoring that the current boom in natural‑gas heavy‑truck sales is not confined to a single area but reflects widespread demand across the country.

Liberation takes the crown, with all three top-ranked brands surpassing 3,500 units, and the top five accounting for over 95% of the market share.

In May 2024, domestic sales of natural-gas-powered heavy-duty trucks reached 20,900 units, a year-on-year surge of 84%. While the growth rate narrowed compared with the previous month, this represents nearly 10,000 more vehicles sold than in May 2023—roughly 1.84 times the level of the same period last year.

First Commercial Vehicle Network noted that in January and February 2024, only two and four companies, respectively, recorded sales exceeding 1,000 natural-gas heavy-duty trucks. By March–May, that number had risen to five for each month. In May, five manufacturers—FAW, Sinotruk, Dongfeng, Shaanxi Auto, and Foton—each posted sales above 1,000 units; among them, FAW led the pack with 6,440 vehicles sold, capturing a 30.84% market share for the month (and maintaining a monthly share above 30% from January to May this year), thereby retaining its top spot on the monthly leaderboard for natural-gas heavy-duty trucks.

May 2024 Domestic Natural Gas Heavy-Truck Terminal Sales Ranking (Unit: vehicles)

As shown in the table above, in May 2024, the natural‑gas heavy‑truck market grew by 84% year over year. However, not all manufacturers posted gains: among the top ten sellers, eight saw increases while two experienced declines. Expanding the scope to the top twelve, two additional companies reported drops. In May, Sinotruk, Foton, and JAC recorded year‑over‑year sales growth of 169%, 185%, and 350%, respectively—outpacing the overall market. By contrast, brands such as Jiefang, Dongfeng, Shaanxi Auto, and United Heavy Trucks posted growth that lagged behind the market trend (though even these firms still posted substantial year‑over‑year gains). Meanwhile, BAIC Heavy Truck, which had not yet launched natural‑gas heavy trucks in May last year, registered net growth. On the downside, three companies saw double‑digit declines, with the worst performer posting a 78% year‑over‑year drop in sales.

In terms of market share, in May four companies each held more than 10% of the natural‑gas heavy‑truck market. The top two—FAW and Sinotruk—each exceeded 20%, selling 6,440 and 5,263 natural‑gas heavy trucks, respectively, with monthly shares of 30.84% and 25.21%. Together, these two firms captured over half of the natural‑gas heavy‑truck market in May (56.05%). From January to May this year, the two industry leaders, FAW and Sinotruk, collectively maintained a combined market share above 55%, with their combined share reaching as high as 61.19% in February.

In May, Dongfeng and Shaanxi Auto sold 3,731 and 2,866 natural-gas heavy-duty trucks, respectively, capturing monthly market shares of 17.87% and 13.73%, making them the only two manufacturers with shares exceeding 10%. Foton secured an 8.34% share with 1,741 units. Ranking 6th through 8th, Dayun, BAIC Heavy-Duty Trucks, and Hongyan sold 277, 260, and 115 units, respectively, accounting for 1.33%, 1.25%, and 0.55% of the market, respectively. The remaining manufacturers each recorded sales below 100 units, with monthly shares all under 0.5%.

Compared with April, the top ten players and their rankings in the natural-gas heavy-truck market shifted in May: Dongfeng and Shaanxi Auto swapped positions, with Dongfeng climbing one spot to third place; United Heavy‑Truck advanced two spots from 11th in April to ninth in May. Meanwhile, Beiben, which had ranked ninth in April, was pushed out of the top ten, while the rankings of the other companies remaining in the top ten stayed unchanged.

From January to May, cumulative sales reached 92,500 vehicles, up 127% year on year, with all four top models posting sales exceeding 10,000 units.

From January to May 2024, cumulative sales of natural-gas-powered heavy-duty trucks in China reached 92,500 units, up 127% year over year. The growth rate of cumulative sales narrowed by 17 percentage points compared with April (+144%), and sales were 51,800 units higher than in the same period of 2023.

Top 10 Rankings of Natural Gas Heavy-Truck Terminal Sales from January to May 2024 (Unit: vehicles)

Specifically, from January to May this year, the leading players in the natural‑gas heavy‑truck market posted mixed results: most companies saw cumulative sales rise, with Sinotruk and Foton posting year‑to‑date growth rates exceeding the overall market’s 127%, outpacing the sector’s broader expansion. Leading brand Jiefang also doubled its cumulative sales, with a 125% increase—nearly matching the market’s aggregate growth rate. Meanwhile, Shaanxi Auto, Dongfeng, Dayun, United Heavy Trucks, and others all recorded double‑digit gains, while BAIC Heavy Trucks posted net growth. At the same time, two of the top ten sellers remain in decline, with year‑on‑year drops surpassing 40% each. Overall, the natural‑gas heavy‑truck market continues to be a tale of stark contrasts.

After May 2024, another manufacturer in the natural-gas heavy-truck market has surpassed 10,000 cumulative sales. The top four—FAW, Sinotruk, Shaanxi Auto, and Dongfeng—have recorded cumulative sales of 30,500, 23,800, 13,500, and 12,700 units, respectively. Among them, FAW and Sinotruk each hold a cumulative market share exceeding 25%, at 32.93% and 25.69%, respectively. Together, these two companies account for nearly 60% (58.62%) of the natural-gas heavy-truck market from January to May this year. Shaanxi Auto’s cumulative share is also close to 15%, standing at 14.63%. Following May, Dongfeng’s cumulative sales crossed the 10,000‑unit mark, capturing 13.69% of the January–May natural-gas heavy-truck market. Foton sold 8,014 natural-gas heavy trucks during the same period, with an 8.66% market share. Dayun, ranked sixth in cumulative sales, delivered 1,730 natural-gas heavy trucks from January to May, holding a 1.87% market share. BAIC Heavy Trucks, with 990 units sold, currently ranks seventh, accounting for 1.07% of the market, while all other manufacturers have shares below 1%.

Compared with the same period in 2023, three of the top ten companies in sales from January to May this year saw their market shares increase. The most significant gain was recorded by China National Heavy Duty Truck Group, whose market share rose sharply by 12.39 percentage points year-on-year during this period; Foton’s share expanded by 3.2 percentage points, and BAIC Heavy-Duty Trucks’ market share increased by 1.07 percentage points. Among these companies, cumulative sales growth has outpaced the overall 127% expansion of the natural-gas heavy-truck market (with BAIC Heavy-Duty Trucks posting net growth).

First Commercial Vehicle Network has observed that, with BAIC Heavy Truck’s entry into the market, the landscape of the natural-gas heavy-truck sector has shifted significantly compared to last year’s year-end rankings: the top six—FAW, SINOTRUK, Shaanxi Auto, Dongfeng, Foton, and Dayun—have held their respective positions from last year. Meanwhile, BAIC Heavy Truck has climbed 10 spots, moving from 17th at year‑end last year to 7th today. As a result, the companies that ranked 7th and 8th last year have slipped in the standings, even falling out of the top ten. Conversely, Beiben and United Heavy Truck, which finished 9th and 10th respectively last year, have managed to retain their places among the top ten; notably, United Heavy Truck has advanced one spot, rising from 10th at year‑end to 9th today.

Conclusion

In the first five months of 2024, the natural gas‑powered heavy‑truck market continued to post year‑on‑year growth, with robust increases averaging 119%. This marks an 18th consecutive month of expansion, a momentum that rivals even the highly watched new‑energy heavy‑truck segment. In June, LNG wholesale prices rose further from May, hovering around RMB 4,400 per ton as of June 14; however, compared with nearly RMB 6,000 per ton at the end of 2023, this remains relatively favorable. Meanwhile, bolstered by the government’s “trade‑in” policy encouraging the retirement of aging trucks, end‑user demand for heavy‑duty vehicles is expected to strengthen, benefiting the natural gas‑powered heavy‑truck market. From April to November last year, monthly sales of natural gas‑powered heavy trucks consistently exceeded 10,000 units, with average monthly sales reaching 17,500 units between June and November. Consequently, the outlook for sustained growth in this segment appears clear; yet maintaining such strong expansion will become increasingly challenging—a key area of focus going forward.