Sep 2016 Financial News

Classic Motors manager: Bi-fuel Honda boosts CNG market

Sep 07, 2016

The debut 18 months ago of the first bi-fuel vehicle in the local market has made Classic Motors the market leader in that segment of the industry, says the company’s general manager, Darryl Young. It was in March 2015 that the Ansa Motors subsidiary unveiled the Honda City, a C-segment bi-fuel vehicle that operates with compressed natural gas (CNG) and gasoline.

Young said since then the dealership has not been able to bring in the popular model quickly enough, with customers waiting almost seven weeks to take delivery of the vehicle.

“Prior to March 2015, there was no real CNG market, so we have created a space where there was none before. We provided a cleaner alternative to diesel and gasoline. It is attractive. Not only is it environmentally friendly fuel, but it is also a more cost effective fuel to run on, so what we are seeing in the market, primarily, is a cost effective vehicle. 

“People are gravitating to it for that particular component—the fuel is so inexpensive to run on. I believe that many of them get a sense of gratification in that they are contributing to a greener environment, as well.” 

Government incentives tied to CNG initiatives spearheaded by the National Gas Company (NGC) CNG company, allowed major savings to be passed on to consumers. Except for import duties, the Motor Vehicle and Value Added Taxes (VAT) are waived on this model vehicle. 

“That dollarised saving kept the car within a price point under $160,000 which is attractive and I would say that’s another factor that caused people to gravitate to it. You are getting a Honda engineered and assembled vehicle.“

Young said officials at Honda Motor Company, are were extremely excited about consumer confidence in the bi-fuel model.

“Obviously, to take a chance on a single island, a single market, to see if the product would do well is a risk for them. Of course, we would have had to commit some numbers to them and I am happy to say we have surpassed all the expectations. Right now they are very happy with the results,” he said. 

With the establishment of the National Gas Company (NGC) subsidiary and Ansa Motors’ vision and eventual introduction of an automobile line powered by a cleaner fuel, Young said the CNG agenda found its place. He described the approach by NGC CNG president Curtis Mohammed and his team ias being rolled-out as progressive. 

Young said his team was able to provide, the NGC CNG company with a geographical guide of purchases made, to allow planners to ensure service and support for this segment of the motoring public was satisfactory.

“They are very interested in seeing its success. That is very evident in the conversations that we have. They are a definite bridge of conversation between us and the government. It is a partnership in every sense of the word,” he said.

Young added that the vehicle highlights Ansa Motors’ commitment to a cleaner and greener environment and providing “a quality, but cost effective product to our customers.”

“I can say that CNG has brought a lot of joy to a lot of people,” he said.

Source:
Sean Nero
Trinidad Guardian
Wednesday September 7, 2016

http://www.guardian.co.tt/business/2016-09-06/classic-motors-manager-bi-fuel-honda-boosts-cng-market