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that transport companies produce fuel for their CNG trucks

that transport companies produce fuel for their CNG trucks

Iveco It was the brand that most promoted the development in Argentina of trucks that work with CNG. So much so that today it manufactures its natural gas Tector model in Córdoba. And Marcio Querichelli, president of the brand for Latin America, is very clear: “The trucks are ready. Starting to produce does not require that much investment. Here the infrastructure is what is missing.”

This Brazilian, originally from São Paulo, visited Argentina just as the company’s presence in our country marked 55 years and chatted with Clarion.

He recognizes that on a commercial level, 2023 “was a spectacular year for us: What we produced we sold with a fairly significant profitability“, supported mainly by local production.

In 2024 things changed “and the market fell around 40%.” However, Querichelli considered that “in recent months there has been a trend of improvement. So it tells us that we can have a better second semester.”

-What are the positive signs you are seeing from the Argentine market?

-Inflation control helps us a lot, because here whoever buys trucks, who invests, has to have confidence in what is going to happen, right? We have a very important financial arm that supports us a lot and helps us. When we produce locally we have a profit, so we bet on this because the market is opening, with some competing brands that are already beginning to import vehicles. I think things should improve a lot.

-Were you more comfortable before, with a closed market or are you more tempted by what may come in the future with the current approach?

-2023 was a perfect year in commercial and industrial terms. We had the challenge of financial costs because we sold in pesos and we kept the pesos. There wasn’t much to do, but we were in positive condition last year. In 2024 the scenario completely changed in terms of volume. But there are now positive indications that the tax will be eliminated from Argentina’s body of law. This helps us.

CNG, a strong bet in the region

-How do you see the development of CNG trucks in the region?

-We have the technology for CNG vehicles. In Europe, we have an 80% share in the gas vehicle segment. And it is a strategic pillar of our development in the region. However, it is completely necessary for the infrastructure to accompany it. We are quite motivated by the Vaca Muerta projects, which are really something that we believe will take us to another level. The technology is there, the trucks are ready. Starting to produce does not require that much investment. Here the infrastructure is what is missing.

-And can this be scaled to other markets in the region?

-Definitely. We have local production in Córdoba of Tector 17-ton gas vehicles. From there, we move to gas buses, some units that we are already building for operation in the city of Córdoba. And in Brazil this year we also started producing the gas-powered heavy vehicle, the S-Way, and the first production batch was purchased in its entirety by a company that works with renewable energy, it bought the entire initial production from me. And we want to bring those units to Argentina.

Iveco Tector CNG, manufactured in Córdoba.

-Is the client only looking for cost savings or also to be cleaner with the environment?

-They are both. A good combination of the two, but at the end of the day the big scale can only come if the whole circle closes. So in this case, some customers that we have are producing their own fuel.

-They are recycling companies that recycle waste from surrounding companies and they produce their own biomethane. For example, the gas vehicle can run on traditional natural gas or biomethane. Anyone who can produce their own biomethane has a very low cost per fuel. We are creating an ecosystem where a company is producing biomethane, distributing it on a route of more or less 400 kilometers in the city of Chapecó and with them we are setting up supply stations. There is a fleet of 3,000 or 4,000 trucks that has the potential to convert to gas in the coming months.

-Is this project independent of this company or is Iveco accompanying this development?

-It is a pilot project that we are doing with this company. But the Brazilian government developed a program called Green Mobility, Mover, which helps us with a subsidy of up to 50% of the investments we are going to make.

-Could that be applied in Argentina?

-Here in Argentina we are also trying to talk to the authorities so that we can have support and this type of subsidy to create these ecosystems as well.

-How is the Córdoba plant?

-It’s underway. Obviously, with the market reduction we had to make some necessary adjustments. But with the growth that we have already had in the last two or three months, mainly in July, it is generating good positive energy in people and obviously from now until December we are not going to stop, we are going to continue producing without major problems.

-Is there any investment on the horizon?

-We have a palette of projects. In Argentina we have a range of products that needs updating. To make that update we need to have a little more clarity. What will the end of the year and next year be like? What the transition will be like for Euro6, which is not yet in Argentina and it is not clear when it will happen. But we are ready: once the country gives us the conditions to move forward, we are going to invest and we are going to continue with the renewal of the product.

-Would a plan that embraces the industry be missing?

-Yes, but before that, clarity on what is going to happen in the economic and political field in Argentina. In other words, this expectation of market recovery, recovery of the economy, for me is the first step. Obviously, along with this there has to come some program that gives us some type of support. And we feel that this is going to happen and it must happen soon.

-How about the arrival of Chinese brands not only importing but also manufacturing in the region?

-In Brazil this is happening quite strongly, but with a stronger focus on electric vehicles and automobiles. But I have no problem with this because once the rules are the same for the game we are playing nothing happens. The problem is when there is a benefit for someone who is coming from outside, from China or another country, that does not leave us so competitive.

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