BRAZIL REPORT
The Brazil Government has published a law starting the Truck and Buses Scrappage Policy, aiming to renew fleets, increase productivity and efficiency, reduce emissions and improve safety. Depending on the effectiveness of the program, it may affect the MHV market. See complete article translated in our webpage and the original from Automotive Business.
Source: Automotive Business Read The Article
PSR Analysis: The launch of the Renovar program is a positive sign on the path of improving safety, logistics efficiency and environmental impact for Brazil, with genuine and relevant objectives.
Because it is a voluntary program, operating in phases, with regulations and parameters yet to be defined, it is too early to project the effectiveness and impact on the vehicle market.
We believe that Brazil still needs broader legislation for a long-term program with a gradual and geographically differentiated process to restrict the movement of older, less safe trucks and buses with lower efficiency and higher emission levels. Fleet owners, autonomous carriers, OEMs and the entire production chain need predictability for long-term planning to prepare for and assure feasibility for a broad and scheduled fleet renewal. PSR
By Fabio Ferraresi, Director Business Development South America, for Power Systems Research
