ELAM FAW Trucks, a Mexico-based assembler partnered with China’s FAW Group 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) 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.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.”
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.
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