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Policy & Regulation

China’s new bus policy clouds outlook for LNG fleet

LNG-powered buses are set to lose out after government agencies jointly announced a new policy that will encourage the use of ‘new energy buses’ LNG-powered buses are set to lose out after government agencies jointly announced a new policy that will encourage the use of ‘new energy buses’.
By Colin Shek 10 May 2019 Asia Pacific / Policy & Regulation 0 34208
A new energy bus in Shanghai manufactured by Yutong. (Interfax)

China’s central government has revised policies for subsidising green public buses that will likely encourage domestic manufacturers to concentrate on producing zero-emission models. This will reduce interest among manufacturers in producing LNG-powered buses, dimming the fuel’s long-term outlook in China’s vast public transport network.

Local governments will now prepay a proportion of the subsidies to manufacturers once a new energy bus receives an operating licence under a policy announced on Wednesday by the ministries of finance, transport, industry and information technology as well...