German buyers are increasingly attracted to natural gas cars. In August, natural gas (CNG) car sales were up 58% compared to August a year ago. Sales were already growing strongly last year and were up 40% on 2005.
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According to Automobilwoche, the main reason for their growing popularity is the CO2 and climate change discussion and the potential fuel cost savings. CNG currently costs around 90 cents per kilogram, which means that natural gas drivers can save around 50% in fuel compared to petrol, and 30% compared to diesel.
Despite the recent sales surge, long-term growth expectations for the CNG car market have not been met. Automobilwoche noted that the industry forecast around 100,000 CNG cars to be in use in Germany by 2006. The figure is currently 60,000.
The German government is currently planning new CO2-based car ownership taxation and uncertainty over this has caused some distortion, particularly in the private car market. Around half of new cars sold in Germany are sold to companies.
