What is the main reason LNG-fueled heavy-duty trucks in China are losing market share to new-energy trucks?

LNG-fueled heavy-duty trucks are losing market share due to a clear policy shift favoring battery-electric and hydrogen-powered trucks—evidenced by the Ministry of Transport’s June 12 plan targeting 40% new-energy penetration by 2030—and deteriorating economics, as LNG prices surged 72% in Tianjin (to $18.32/MMBtu) between the start of the Iran-Israel conflict and 22 June, eroding LNG’s fuel-cost advantage over diesel and electricity; this coincides with new-energy truck sales rising 104% year-on-year in May while LNG truck sales fell over 55% from April levels.

Which freight segment remains a protected niche for LNG trucks under China’s new transport policy?

Hazardous chemical transportation remains a protected niche for LNG trucks, as the new policy explicitly prohibits new-energy heavy-duty trucks from transporting hazardous chemicals—a safety-driven exemption that preserves an important market segment for LNG vehicles.

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