INDONESIA REPORT
Komatsu began introducing hybrid construction equipment in Indonesia this spring. Equipped with an engine and electric motor as the power source, these machines can improve fuel efficiency by 20-30%, compared to conventional machines.
Chinese manufacturers are pushing low-priced construction equipment, and are now rivaling Komatsu, which has a stronghold in Indonesia, in terms of market share. With fuel prices rising sharply, emerging countries are also becoming more environmentally conscious. Komatsu is fending off Chinese competition with its highly fuel-efficient construction equipment and is tapping into demand for decarbonization.
In Indonesia, the largest construction equipment market in Southeast Asia, Komatsu has launched a hybrid hydraulic excavator. Equipped with a hybrid system developed in-house, the excavator’s swing unit is electrically powered. When turning the body, including the arm and driver’s seat, from side to side, the energy generated during deceleration is used to generate electricity, which is stored for future use. The company plans to market the system to nickel mine developers and others, where demand for EV batteries is growing.
A hybrid model has been introduced in the best-selling class 30-ton weight class. The price is in the range of several tens of millions of yen per unit, which is 20-30% higher than that of a normal diesel-powered hydraulic excavator. Excavators used in nickel mines require a lot of turning to the left and right when digging ore and loading it onto dump trucks, so the introduction of hybrids will have a significant effect on fuel efficiency. “Considering the current sharp rise in fuel costs, the price increase can be recovered in a few years” says President Ogawa.
Source: The Nikkei
PSR Analysis: The electrification of construction equipment is quite different from the electrification of automobiles. In terms of ease of use, the availability of charging infrastructure is a major consideration. At construction sites, often there is no charging infrastructure unless a generator is brought in. And there are currently no batteries that can continue to provide high output for eight hours per a day of full operation.
However, hybrids can overcome these weaknesses and improve environmental performance and fuel economy. In the past, Komatsu had not fully deployed hybrid construction equipment in Southeast Asia. However, environmental awareness is growing in the region, and the government has set a goal of virtually eliminating greenhouse gas emissions by 2060.
Indonesia has traditionally been a stronghold of Komatsu, but Chinese companies such as SANY have been increasing their sales, and their market share is expected to remain at the same level. Competition is certain to intensify in the future. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia for Power Systems Research
