The PowerLink 3.0 application has been updated for Q4 2025 and you can now access the system.
Contact support@powersys.com if you have any questions or concerns. PowerLink™ 3.0 Login
Power Systems Research South America is the leading source of information on engines and power equipment in this dynamic and growing region. We have the broadest and deepest knowledge of South American power product markets available, which provides our customers with the best opportunity for growth. Our local team of industry professionals is supported by our analysts in key markets around the world. Whether you need detailed global data, forecasts or customized local market studies, we can provide you with Powerful Possibilities. Let’s start today.
Volvo CE and Case Construction are aligned to affirm CE sales in Brazil will grow 20% in 2021 despite of the effects of the pandemic. With 18% growth of sales in Q1 2021 over the same quarter of 2020, CE executives are optimistic about full year sales.
PSR Analysis: First quarter of 2020 was a strong sales quarter over 2019 because the pandemic impact was not present until March 16, 2020.
This makes the result of Q1 2021 18% above Q1 2020 really strong and makes executives optimistic about FY 2021 results. In addition to that, the foundation of the segment is robust, with the construction industry activity growing because of strong housing demand, infrastructure bids being restarted and mining growing significantly. PSR
Fabio Ferraresi is Director-Business Development, South America, for Power Systems Research
In an effort to reduce the domestic economic impact of the pandemic, the Argentinian government has published an order that makes all industry with annual revenue above US$ 41 Million to produce at full capacity. If not, they will be fined.
PSR Analysis: As the Argentinian government sees a shortage of industrial products and related price escalation, it identifies reduced OEM production as the main cause of these shortages. However, it underestimates the effects of supply chain constraints and even labor constraints caused by the pandemic.
We do not believe the decree will result in higher production, and we believe the order will be reviewed in a short time. Meanwhile, this is an issue companies will have to deal with, including the over planning it should result. PSR
Fabio Ferraresi is Director-Business Development, South America, for Power Systems Research
MWM Engines and Power Gen, part of the Navistar group, has announced the launch of a new line of Acteon Engines powered by Natural Gas. The engine family has been developed in Brazil and features 4 cylinders and 6 cylinders with 4.8L and 7.2L displacement.
PSR Analysis: With this move, MWM meets Power Gen customers demand or NG powered Gen Sets and increases portfolio to attend OEMs aiming to launch NG powered vehicles and equipment without investment in Engines Development. As NG becomes a competitive and cleaner fuel alternative for Brazil, MWM put the bets on the right place to attend better the customers demand. PSR
Fabio Ferraresi is Director, Business Development-South America, for Power Systems Research
The new medium Toyota SUV produced in Indaiatuba-SP started production in March. Sales in Brazil were expected to start by March 25, but exports have already started. Currently, the Corolla sedan is exported to only five countries, but the new SUV will be sent to 22 countries across Latin America. However, exporting overseas seems unlikely due to logistics cost restrictions.
PSR Analysis: The indexes of vehicles per capita in Latin America are still behind other regions and developed countries which provides an opportunity to grow sales. The SUV continues to grow in popularity in this region and the combination seems to be the right bet for a production hub in Brazil, leveraging on the higher volumes to assure competitiveness and a wining cycle for the new product. PSR
Fabio Ferraresi is Director, Business Development-South America, for Power Systems Research
Jacto has announced a new 96,000 m2 plant that it will build by 2023 in Pompeia-SP – Brazil, the same location where most of its operations are already located. Fernando Gonçalves Neto, Jacto President, says the new and modern facility will sustain forecasted growth for several years.
PSR Analysis: Jacto has been growing in importance with specialized products for high caliber agriculture in Brazil with sprayers, harvesters, and seeders. They have been launching new agricultural products with remarkable success and the growth outlook is positive. PSR
Fabio Ferraresi is Director of Business Development-South Americafor Power Systems Research
After adding 28 Ford dealers to bring its dealer total in Brazil to 38 dealers, the Chinese giant is preparing to introduce an EV to i its new lineup in H2 2021. It plans to add trucks in the 17 ton – 24 ton range for 2022, the most popular in Brazil. In addition to the EV and Diesel Trucks, Foton will evaluate the potential for a CNG Trucks for launch after the EV, but it has shorter term potential for higher volumes.
PSR Analysis: Currently, Foton produces an LCV under a manufacturing agreement with GEFCO and imports Medium Trucks for sale in Brazil. These Trucks should be nationalized by 2025. The new line of Heavy Trucks meets P8 requirements for 2023 and may be nationalized by 2025 as well. So far, the volumes are very small, but we see an important growth forecast exceeding the overall market.PSR
By Fabio Ferraresi is Director of Business Development-South America, for Power Systems Research
With 25,000 units shipped in January 2021, exports of vehicles grow 21.9 % compared with January 2020 and 24.2% compared with December 2020. The volume surprised ANFAVEA, which was expecting worse numbers because of the effects of the pandemic in the South American Countries, traditional destinations for Brazilian vehicle exports.
PSR Analysis: This result is positive compared to our initial forecast of a slow recovery of South American countries. On the other hand, the production in countries such as Argentina and Colombia has been affected by a shortage of raw materials, creating an opportunity for imports from Brazil in these countries, even with lower demand. PSR
Fabio Ferraresi is Director, Business Development-South America, for Power Systems Research.
Manaus-AM had the biggest impact of COVID 19 in Brazil and it is where Honda and other Motorcycle OEMs have production plants. Honda, responsible for over 80% of the production, had to stop twice in January due to the pandemic effects. The consequence is that the production in January 2021 fell by 50% when compared with January 2020 and by 27% when compared with December 2020.
PSR Analysis: The demand for motorcycles remains high and the forecast is 10% growth over 2020. These stops are punctual. Volumes should be recovered as pandemic effects slow down during 2021 with the vaccines and the growth forecast is kept so far. PSR
Fabio Ferraresi is Director – Business Development, South America, for Power Systems Research
Ford announced on Jan. 11 plans to shut down all car manufacturing operations in Brazil. Ford produced cars in Camaçari-BA, Taubaté-SP, and off-road vehicles (Troller) in Horizonte-CE.
The company will keep selling vehicles, especially the Ford Ranger, produced in Argentina and other products from other locations, such as the Transit, Bronco and Escape. Because of this action, Ford Expects an impact of US$ 4.1 billion in non-recurring expenses and a US$ 2.5 billion cash impact.
After freezing all investment last year due to the Covid-19 pandemic, GM is now resuming its investment program of 10 billion of Brazilian Reais, equivalent to US$ 2 billion. The program funds new vehicles, infotainment systems, as well as modernization of the plants in Sao Paulo state.
PSR Analysis: GM has kept and amplified their market leadership position in Brazil. In 2020, they moved into second place. Their continuous investment on new products and productivity has been recognized by the market. PSR
Fabio Ferraresi is Director Business Development, South America, for Power Systems Research
