Thursday, January 26, 2012

Marketing Natural Gas Vehicles


The viability of using natural gas as fuel is undeniable. Even CanElson Drilling Inc., a Canada-based oilfield service provider, uses it as a replacement for diesel in their trucks. They even developed a revolutionary technology to harvest natural gas from wells. And recently, telecom giant AT&T announced that they have launched their 5,000th alternative fuel vehicle that runs on compressed natural gas (CNG). Both companies view natural gas as a cheaper and cleaner alternative to fossil fuels.

Source: Jeanette ONeil / www.publicdomainpictures.net
If companies view natural gas as a feasible alternative to fossil fuel, why aren’t ordinary consumers making the switch yet?

Even though the technology is already available and major car manufacturers such as General Motors, Toyota, Honda, Fiat and Volkswagen have models plying the streets of Brazil, Argentina, Pakistan, Iran and India, consumers in general are still unaware of their presence. The current marketing strategies for natural gas vehicles are inadequate for ordinary consumers to trust them as a replacement for conventional vehicles.

It will do much help if they are also present, like petrol and diesel cars, in showrooms. Advertisements particularly TV ads are still inevident which cast more doubt about their reliability. And, at present, majority of the news about CNG technology revolves in their usage in trucks and delivery vehicles, not in the cars that ordinary citizens use.

Furthermore, range anxiety is still an issue that has to be solved. Refilling stations that cater to these types of vehicles are yet to proliferate. It will also help to know where refilling stations are.

It will take time before CNG and Liquefied Natural Gas (LNG) vehicles could penetrate the market but these strategies could help accelerate it.

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