CONEXPO CONEXPO 2023 Features Hydrogen, Electric Equipment

Walking CONEXPO 2023, the giant international construction show in Las Vegas this month, it was obvious that OEMs are devoting huge amounts of resources to developing alternative power sources for their compact equipment.

Hydrogen powered units and battery packs were common and new products powered by alternative energy sources were popular with attendees. New technology was the name of the game at this year’s show.

However, there were several prototypes that were built only for the show, according to some exhibitors, and were not likely to be put into mass production anytime soon. In fact, one manufacturer told us, “This was manufactured for the purpose of the exhibition and is not intended for mass production.”

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Brazil MHV Production Outlook Webinar, March 17, 2021, Sponsored by ABM

Carlos Briganti
Carlos Briganti

In this episode of the PSR PowerTALK™ podcast Carlos Briganti, Managing Director of the Power Systems Research South American operations, analyzes the outlook for MHV production in Brazil, with special emphasis on the trends away from diesel power.

He will be presenting this information in more detail during a webinar sponsored by the ABM on March 17, 2021. The webinar is sponsored by the Brazilian Association of Metallurgy, Materials and Mining (ABM). There is no charge for the ABM webinar.

You can register here for the webinar: https://www.abmbrasil.com.br/eng/inscricoes/difusao-digital/webinar-tendencias-tecnologicas-volumes-para-veiculos-comerciais

The ABM is a non-profit civil association whose objective is to bring together individuals and companies aiming collective actions that promote the development of people, technical and scientific evolution and innovation in processes, products and management in their areas of expertise. PSR

Transcript

Welcome to the PSR PowerTALK podcast, produced by Power Systems Research. Today Fabio Ferraresi, Director of Business Development, South America and Carlos Briganti, Managing Director, South America, will discuss the outlook for medium and heavy vehicles in Brazil.

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Honda Forced To Reduce Car Features

FAR EAST: JAPAN REPORT
Akihiro Komuro
Akihiro Komuro

Honda will sell some of its new vehicles without a function that detects vehicles in the blind spot and warns the driver, saying the dedicated semiconductors required for this function have been in short supply.

To solve the situation where it takes about a year from order receipt to delivery, Honda will sell the new models with the function reduced so that they can be delivered in about six months.

Sales of the new SUV model “ZR-V” began with a specification that eliminates “Blind Spot Information (BSI),” which alerts the driver by detecting vehicles diagonally behind the vehicle and displaying them in the door mirror. Since the procurement of the necessary in-vehicle semiconductors was not completed in time and the delivery period was expected to be prolonged, the company decided to sell the car without this BSI function. Although it varies by store and model, the time from order to delivery can be reduced by half, from about one year to about six months.

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Power Systems Research Assists on Gen-Set Emissions Project

WHITE PLAINS, NY – The Pace Energy and Climate Center (Pace) has announced a new data analysis tool and research model in a report titled Estimating the Air Emissions of Stationary Engine Generators under Two Megawatts,” both developed with support from Environmental Defense Fund.

The project drew upon data provided by Power Systems Research (PSR), a Minneapolis-based research firm, from its proprietary PartsLink database.

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Tesla Refinery Project Advances in Texas

Tesla is currently working on a lithium refinery project that would be coming to Corpus Christi, Texas, and it sounds like the automaker is in the final stretch of its negotiations with the authorities.

In September, we learned that Tesla has a plan to build a lithium refining facility on the Gulf Coast of Texas. At the time, all we knew was that Tesla was planning on moving fast with hope to start building in Q4 2022.

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Important Russian Mega-Project in Doubt

Maxim Sakov
Maxim Sakov

The government is considering cancelling construction of the high-speed railway between Moscow and St. Petersburg.

One alternative being considered is the replacement of the high-speed railway for selected cargo between the two cities. This option is lobbied by Russian Railways.

The plans to build a high-speed railway between Moscow and St. Petersburg were announced last August. The project was included in the federal budget for 2022-2024. Completion of construction work was expected in 2027.

Read The Article

PSR Analysis: The most obvious reason for uncertainty of a mega-project like this, is a shortage in the budget. However, the Russian budget now is healthy and has a growing surplus. So, the Russian government may be considering a scenario where this money is required somewhere else. If this assumption is correct, it’s a crisis scenario.   PSR

Maxim Sakov is Market Consultant-Russia Operations for Power Systems Research

Companies Support Government Fleet Renewal Program

Fabio Ferraresi
Fabio Ferraresi

Gerdau, Vamos and Volkswagen Caminhões have formed a partnership to support the national fleet renewal program, aimed at removing from roads vehicles more than 20 years old.

The fleet renewal program provides for the purchase of low emission and more efficient vehicles by self-employed drivers and other operations. Under the plan, 140 acquired vehicles were sent to Gerdau’s headquarters in Araçariguama, which is responsible for their destruction and recycling.

At the same time, an extension for the incentives program of up to 1 Billion Reais, (US$ 200 M) was announced.

Source: G1      Read The Article

PSR Analysis: The total of resources and mechanisms to allow the access to the resources still are not sufficient for the program to impact the market significantly. However, the small inroads demonstrate the desire of Government and private entities to make changes and should impact the market going forward. More deployments and adjustments in the program should come in the medium term. We will keep monitoring and adjusting our short-medium term forecast as it progresses.   PSR

Fabio Ferraresi is Director-Business Development South America for Power Systems Research

Fleet Renewal Program Goes Live in Brazil   

BRAZIL REPORT
Fabio Ferraresi
Fabio Ferraresi

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 Americafor Power Systems Research

Brazil Moves Forward on Truck Fleet Renewal Program

BRAZIL/SOUTH AMERICA REPORT  

In December 2022, the Brazilian Government published regulations for the Fleet Renewal Program authorized by the law that was published in H1 2022. Under this regulation, truck owners may receive the old truck market value from companies in the Oil and Gas exploration chain, provided that they prove the truck was taken out of circulation, disassembly and recycled. The program is voluntary, both for owners selling the old truck and for O&G companies designating resources for the program in exchange for a reduction of duties on O&G exploration contracts.

Source: M&T     Read The Article

PSR Analysis. Preliminary analysis suggests the program won’t be very effective, since significant recycling and paperwork efforts are required to sell the old truck at market prices. It seems this is a regulation published to show environmental efforts, but one that will have limited effectiveness. No impact is seen in the Truck Market now unless market conditions change drastically. PSR

Fabio Ferraresi is Director Business Development-South America for Power Systems Research

Thai Incentive Program to Promote EVs, Starting in 2022

SOUTHEAST ASIA: THAILAND REPORT

The Thai government plans to introduce an incentive program to promote EVs starting in 2022. The program will focus on providing subsidies to lower sales prices and reducing excise and import taxes. Automakers taking advantage of the program will be required to produce EVs locally from 2024 onward.

According to local media, the subsidy is 70,000 to 150,000 baht per vehicle, depending on the model and battery capacity. The excise tax on purchases will be reduced from the current 8% to 2%. Import duties will be reduced by 20-40% depending on battery capacity and sales price. The current maximum tariff rate is 80%, but the trade agreement will impose no tariff on Chinese-made products and 20% on Japanese-made products. Japanese-made products are also expected to be tariff-free if they meet the conditions. The current sales prices of imported cars vary from about 1 million baht for EVs from China’s SAIC Motor Group and Great Wall Motor to about 1.5 million baht for Nissan Motor’s LEAF at campaign prices.

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