'Limited potential'
Analysts said that natural gas vehicles have only "limited potential" in China, especially in the consumer market, due to inadequate gas supplies and fueling stations.
They note that the vehicles are viable in locales close to gas fields or pipelines.
"It is unlikely natural gas vehicles would be used on a large scale in big cities like Beijing and Shanghai where the priority use of natural gas supplies is households," Zeng with LMC Automotive said.
According to a recent Associated Press report, natural gas is making inroads in the US as a transportation fuel, particularly for trucks, buses and taxis. Sales are also gaining ground in the consumer market, but the vehicles are still expected to account for less than 1 percent of the auto market in the next few years.
"At the end of the day, natural gas is still a conventional energy - it's a fossil fuel and can't be compared with electric cars where electricity could be generated by renewable sources like water, sunlight and wind," Zeng said.
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