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Korea’s SK Battery To Supply Hyundai’s U.S. Plant
FAR EAST: SOUTH KOREA REPORT
Akihiro Komuro Korean battery giant SK Innovation announced that it will expand its supply of batteries to Hyundai Motor Group in North America, and the two companies will discuss the construction of a joint venture plant to increase supply after 2025. SK Innovation says it plans to support Hyundai Motor Group’s increased EV production in North America.
In addition to EV production at its existing Alabama plant, Hyundai Motor plans to start operations of a dedicated EV plant in Georgia by 2025. Kia Motors, a group company, will also increase EV production in Georgia, as stable procurement of batteries, a key component of EVs, has become an issue.
SK On, a battery subsidiary of SK Innovation, already supplies batteries for Hyundai Motor’s mainstay Ioniq EV series. In the U.S., SK On produces batteries at its existing Georgia plant, and after consulting with Hyundai Motor, the company will decide whether to expand the plant or establish a new joint venture plant.
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Honda To Produce FCVs in the U.S. in 2024
FAR EAST: JAPAN REPORT
Akihiro Komuro Honda announced that it will produce electric fuel cell powered vehicles in the U.S. in 2024. They will also be equipped with a plug-in function that allows them to be recharged externally. Honda has set a goal that all new vehicles sold by 2040 will be either EVs or FCVs.
In North America, its main market, Honda will offer FCVs as an option. The new FCV to be produced is based on the CR-V SUV model and will be manufactured in small quantities at the Performance…
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New Vehicle Sales Increase 33% in September
SOUTHEAST ASIA: 6 MAJOR COUNTRIES REPORT
New vehicle sales in the six major Southeast Asian countries totaled 317,765 units in September, up 33% from the same month last year. The figures were compiled from new vehicle sales statistics released by automobile industry associations and other organizations in each country. This is the 12th consecutive month that sales have exceeded those of the same month last year; the economic recovery from COVID-19 continues, with sales up 8% compared to September 2019, even before the spread of the infection.
Indonesia, the largest new vehicle market in the region, saw a 19% y/y increase to 99,986 units. This was the highest single-month sales volume in 2022. The tax exemption for some models ended at the end of September, and there appears to have been a rush demand for new vehicles.
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Korean Electric Motorcycle Maker Builds Factory in Vietnam
FAR EAST: SOUTH KOREA REPORT
Zio Holdings, a South Korean company engaged in the production and sale of electric motorcycles, says it has completed an electric motorcycle factory in Bac Ninh Province in northern Vietnam.
The factory covers an area of 1,300 m2 and has an annual production capacity of 12,000 units. The factory will receive parts supplied from original brand factories in Vietnam and China and will assemble the parts at ZIO EV’s factory in Vietnam.
The electric bikes to be manufactured at the new factory will be named “EDEN” and “MEVOYEZ,” and will use LFP batteries (lithium-ion iron phosphate batteries). The maximum speed is 55Km/h, and the driving range is over 150km. The selling price is expected to be 30 million VND (approximately 176,000 yen).
Semiconductor Development Companies Set Up
FAR EAST: JAPAN REPORT
Akihiro Komuro The full details of the government’s goal of a next-generation semiconductor development system have been revealed. Led by the Ministry of Economy, Trade and Industry, and in cooperation with the private sector and overseas countries such as the United States, a new company will be established to mass produce next-generation semiconductors, and a new R&D center will be launched. This is the first time that a comprehensive system for research and mass production of advanced semiconductors has been established.
The new structure has two pillars. The “LSTC (Leading-edge Semiconductor Technology Center)” will be established by the end of this year as a research and development center for next-generation semiconductors. The University of Tokyo, Tokyo Institute of Technology, Tohoku University, RIKEN, and others will participate in the LSTC, which aims to be an open R&D platform for both domestic and international use so that the results of research can be put to practical use. The company is also considering collaboration with the National Semiconductor Technology Center (NSTC), which is scheduled to be established in the United States.
Urban Railroads Delayed
SOUTHEAST ASIA: VIETNAM REPORT
The development of urban railroads in Vietnam has been significantly delayed. The opening of the second line in the capital Hanoi is expected to be delayed to 2027, and the first line in the southern city of Ho Chi Minh City may not open until the end of 2023.
In addition to financial difficulties, there are cases where administrative authorities are not proactively resolving problems, leading to further delays.
In mid-September, Hanoi City abandoned the planned Hanoi Urban Railway Line 3 (Nhon Hanoi Station), which was planned to run through the center of the city, to open by the end of the year. The line is 12.5 kilometers long. Construction of the line began in 2010, and although it was originally planned to open in 2015, it is believed that the plan has already been changed about five times.
Hyundai Motor and KT Invest in Autonomous Driving
FAR EAST: SOUTH KOREA REPORT
The Hyundai Motor Group and telecommunications giant KT have formed a capital and business alliance. The two companies will invest about 750 billion won in each other by exchanging their shares.
The two companies will jointly develop communication-related technologies to produce autonomous driving equipment. In addition to automobiles, Hyundai Motor is expanding its business in the fields of robotics and urban air transportation (UAM, or flying cabs), and has decided that partnering with KT will enable it to accelerate research and development in fields other than automobiles.
Agri Week 2022 Report: Drones Become Popular
FAR EAST: JAPAN REPORT
Akihiro Komuro Agri Week 2022 is a comprehensive exhibition on agriculture, livestock, and horticulture. It is held twice a year in Kyushu and Kanto. Agricultural materials, smart agriculture products, livestock materials, and products related to industrialization are exhibited. Agriculture Week consists of the following four exhibitions: AGRI TECH (Material & Technology), AGRI NEXT (Next Generation), AGRI PROCESS (Farmer‘s Processing), LIVESTOCK (Livestock Supply & Equipment)
Source: Official HP
PSR Analysis: The drone market is seeing an increase in the number of new entrants. Currently, the market size is estimated to be around 300 billion yen, but some say it will grow to nearly 800 billion yen in five years. This is because the revision of the Civil Aeronautics Law to be implemented this December will lift the ban on Level 4 unassisted visual flights in manned areas. Until now this has been limited to Level 3 unmanned areas. Currently, the use of drones is mainly for spraying chemicals, but it is also being considered for logistics, inspections, civil engineering, and construction.
Vinfast To Export Initial 5,000 EVs To Europe and the U.S.
SOUTHEAST ASIA: VIETNAM REPORT
Vinfast has announced plans to export approximately 5,000 EVs to the U.S., Canada, and Europe by the end of 2022. This is the first time for them to export EVs. The company also plans to start construction of a new EV plant in the U.S. by the end of this year, accelerating its global strategy.
According to the plan, exports to the U.S. and other countries will begin in early November, with delivery to customers starting in December. Vinfast’s CEO revealed that the company has orders for approximately 65,000 EVs worldwide.
South Korea Sees First Trade Deficit with China in 28 Years
FAR EAST: SOUTH KOREA REPORT
Akihiro Komuro The economic relationship between China and the ROK has reached a turning point. According to statistics from the ROK, for the first time in 28 years, the ROK has a trade deficit with China. China has been the best customer of the export driven ROK economy, and this is causing concern in the ROK. At the same time, Chinese companies are intensifying their takeover of Korean companies, and in response to the escalation of the U.S.-China conflict, they have begun to pursue a strategy of using Korea as a foothold to capture the U.S. market.
A management official at South Korea’s Hyundai Motor’s joint venture plant in Chongqing, China, said that the passenger car assembly plant is idle and that negotiations are underway to sell it to a Chinese company. Hyundai Motor started operations in Chongqing in 2017, including an assembly plant with an annual production capacity of 300,000 units, but sales slumped due to the rise of Chinese automakers. At one point, the company occupied second place with a market share of nearly 10%, but recently it has fallen below 2% and slumped to 10th place.
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