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AGCO Presents Alternative Fuels Engines

Fabio Ferraresi AGCO has presented new AGCO Power engines powered by ethanol and biomethane for agricultural machinery, developed by its South American engineering team. The solutions target tractors in the 200 hp to 300 hp range and were validated in real field operations, including sugarcane and grain crops.
The ethanol engine uses dedicated ignition and injection systems, while the biomethane version is aimed at farms with access to biomass and biogas production. According to AGCO, the technologies can deliver diesel equivalent performance and reduce CO₂ equivalent emissions by up to 90%. Market introduction is expected in 2027 for biomethane and in 2028 for ethanol.
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Randon Exports Semitrailers to Indonesia
Randon has completed its first export of semitrailers to Indonesia, opening a new market in Southeast Asia. The shipment includes sugar cane specialized models in Rodotrem and Tetratrem configurations for a local sugar and bioethanol producer.
The exported Tetratrem can carry up to 144 metric tons, with a Gross Combined Weight of 211 metric tons. Prototype units are being shipped for customer testing between May and June 2026, with the contracted batch of around 174 products expected to start shipping in July.
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Chinese CFMoto Starts SA Motorcycles Operations
CFMoto has officially started operations in Brazil with CKD (Completely Knocked Down) production in Manaus, Amazonas, eight dealerships in the South and Southeast regions, and four initial motorcycle models. The line includes the 450 CL-C and 450 CL-C Bobber custom models, both equipped with a 450 cc two cylinder engine producing 41 hp, and the IBEX 450 adventure model, with the same engine family producing 44 hp.
The IBEX 700 uses a 693 cc two cylinder engine with 67.9 hp. Prices start at R$ 32,990 for the 450 CL-C, R$ 33,990 for the Bobber, R$ 35,990 for the IBEX 450, and R$ 44,990 for the IBEX 700. All models include a three year warranty and fixed price maintenance up to 30,000 km.
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Funding Program Can’t Detain Brazil Truck Market
Brazilian truck registrations fell 17.2% in the first four months of 2026, to 30,700 units, compared with 37,100 units in the same period of 2025. April sales reached 8,800 trucks, almost stable versus March, but still 5.8% below April 2025.
The Move Brazil financing program helped slow the market contraction but was not enough to reverse the decline. Truck production also fell 17.2% from January to April, to 35,400 units, while exports declined 14%, to 7,000 units. ANFAVEA, the main association of Producers, expects support from Move Brazil 2, which will provide US$ 4.11 billion (R$ 21.2 billion) for truck, bus, and road implement financing, with terms of up to 120 months and a limit of US$9.70 million (R$ 50 million) per beneficiary.
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Daimler Truck Launches Zárate Plant

Fabio Ferraresi Daimler Truck inaugurated a new US$110 million industrial complex in Zárate, Buenos Aires Province, Argentina, reinforcing its long term manufacturing strategy in South America. The facility will produce Mercedes-Benz Atego and Accelo trucks alongside OH and OF bus chassis, while also integrating a logistics center and Argentina’s first remanufacturing operation dedicated to commercial vehicle spare parts. The plant replaces part of the former Virrey del Pino operations and is expected to support both domestic demand and export activities across Latin America.
The project represents the first greenfield automotive manufacturing investment in Argentina in approximately 15 years and follows the operational separation of Daimler Truck from Mercedes-Benz Group in 2021. According to company statements, the site is designed to improve logistics efficiency due to its proximity to port infrastructure and to increase production scalability. Installed annual production capacity may reach approximately 10,000 units.
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EU–Mercosur Pact May Reshape SA MHV Industry
The European Union and Mercosur trade agreement started in May 1st and it is expected to affect the competitive landscape of the truck and bus industry in South America, particularly in Brazil and Argentina. The gradual reduction of tariffs and expanded market access could increase the presence of European commercial vehicle technologies and components in the region.
The agreement may lower import costs for trucks, buses, engines, and advanced systems from Europe, potentially accelerating fleet modernization…
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Yanmar Announces $55.77 million Plant in Brazil
Yanmar has announced an investment of approximately $55.77 million USD (R$280 million) to build a new manufacturing facility in Indaiatuba, São Paulo State, Brazil. The project is designed to expand the company’s industrial capacity in the country and support growth in the agricultural machinery and compact equipment segments.
The new plant is expected to centralize production operations distributed across different facilities and improve manufacturing efficiency, logistics integration, and future…
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Tax Decision on Buses Is Reversed

Fabio Ferraresi The Brazilian federal government reversed the decision to resume the application of taxes affecting school buses acquired under the Caminho da Escola program, administered by the Fundo Nacional de Desenvolvimento da Educação (FNDE). The discussion involved the potential reintroduction of tax charges impacting the cost structure of buses supplied through the public procurement framework, particularly related to federal and state taxation such as IPI and ICMS, as well as uncertainty…
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Indian Preet Plans Tractor Manufacturing Plant
Preet, an Indian agricultural machinery manufacturer, has announced plans to establish a tractor production facility in Brazil, in a move to strengthen its presence in the South American agricultural equipment market. The project involves local assembly operations designed to increase market proximity, reduce logistics costs and improve competitiveness in segments typically dominated by established global OEMs.
The investment reflects a strategy to expand the company’s manufacturing footprint in regions with strong demand for agricultural mechanization, particularly in medium-horsepower tractor categories.
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Selic Interest Rate Cut Has Limited Impact
The initial reduction in Brazil’s benchmark interest rate (Selic) is expected to have limited short-term impact on the automotive sector, according to industry assessments. Despite the start of a monetary easing cycle, financing conditions remain restrictive, with credit costs still elevated compared to historical averages.
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