ELAM FAW Trucks, NatGas Push Factory-Built NG Trucks in Mexico

Chinese truck manufacturer ELAM FAW Trucks and vehicular natural gas supplier NatGas have announced a strategic alliance aimed at accelerating the replacement of diesel-powered trucks with factory-built natural gas vehicles (NGVs) units in Mexico. The partnership combines ELAM FAW’s production of heavy-duty trucks equipped with natural gas engines with NatGas’ refueling infrastructure, enabling fleet operators to plan routes, manage consumption, and stabilize fuel costs.

Under the agreement, fleets adopting ELAM FAW NGV trucks will gain access to preferential pricing, along with integrated fuel supply and billing schemes. These tools are designed to centralize cost planning, route management, and energy consumption across fleet operations.

Fuel prices remain a critical variable for Mexico’s logistics sector, accounting for between 30% and 40% of operating costs for transport companies. In this context, NGV has emerged as a lower-cost alternative. Over the past six years, natural gas prices have ranged from 46.6% to 54% below retail diesel prices, offering fleets greater cost certainty per kilometer and reduced exposure to fuel price volatility.

“The challenge in transport is no longer growth, but growing without losing margin,” said Ernesto del Blanco, CEO of ELAM FAW Trucks. “Vehicular natural gas allows operators to regain control over one of the most critical variables in their operations: fuel.”

NatGas currently operates refueling stations along key logistics corridors, including the Bajío, western Mexico, the State of Mexico, and northern Mexico. The company said it plans to continue expanding its network in line with industrial and logistics growth to support broader NGV adoption.

“NGV is no longer a theoretical alternative,” said Enrique Taracena, CEO, NatGas. “It is now a viable option, with available infrastructure, factory-designed trucks, and operational control tools that allow fleets to function at scale.”

Beyond cost considerations, the companies highlighted the environmental benefits associated with natural gas vehicles. Compared with diesel, natural gas-powered trucks can reduce local pollutant emissions by up to 90% and lower carbon dioxide emissions by up to 27%, according to company data, allowing fleets to reduce their environmental footprint without major changes to existing logistics operations.

Additional industry estimates point to even larger potential reductions. “Natural gas can cut CO₂ emissions by up to 70% compared with diesel and is around 50% cheaper per kilometer than traditional fuels,” said Luis Echavarría, Director General, Enco GNV, in comments to MBN.

NGV systems are also less vulnerable to fuel theft, as natural gas is stored and distributed in gaseous form, reducing losses linked to illegal siphoning. The fuel is less flammable than gasoline and dissipates quickly in the event of an accident, enhancing safety. In addition, natural gas engines operate more quietly and offer lower local emissions, further strengthening the case for adoption in urban and regional logistics.