XCMG announced plans to produce battery electric trucks in Brazil at Pouso Alegre (MG) plant in two years. Until then, the company expects to build a local network of suppliers and wait for new industrial policies that are expected for the electric vehicle segment.
The current plan consists of starting with the assembly of chassis and cabins at the Minas Gerais plant with components produced by local suppliers. Batteries and other components of the electric powertrain will be imported from China.
This first stage fits the company’s electric trucks within the scope of Finame, the BNDES credit line that finances the acquisition of machinery and equipment. To access this line, the product to be financed must have a certain percentage of parts and components produced in the country.
While not producing locally, the company starts its commercial operation of the truck market with imported models. XCMG unveiled the E7-49T 6×4 electric truck. The model has the capacity to carry up to 49 tons, has a range of 150 km per full load and was presented for the first time at Agrishow in May.
Source: Automotive Business Read The Article
PSR Analysis. The main result is another player in the Heavy Duty Market. Initial sales should go for companies that aim to test the solution for learning and meet ESG requirements. The limited range, charge time and lack of infrastructure reduces the market to specific operations of low range and well-defined routes. Low sales volumes are expected, yet it is a good business for importing and selling at high ticket / reasonable margins with minor incremental investment. PSR
Fabio Ferraresi is Director Business Development-South America for Power Systems Research
