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Agrale plans to soon start production of electric trucks with the FNM brand, a Brazilian OEM that operated from 1939 to 1979. These trucks will target urban distribution and will be produced at Unit 2 of Agrale, in Caxias do Sul-RS. The Trucks use the base of trucks Agrale completed with an electric propulsion system.
PSR Analysis: It is hard to say how many Electric Trucks will be sold under the FNM Brand and Agrale production and when they will be produced. However, the FNM brand appeal is echoing in the press and the electric propulsion for urban deliver seems to put Agrale in the right track. The cost of battery/vehicle and timing will be keys for success, as well as public bids that may sell a significant number of units.
Cost and infrastructure are the key challenges for electrical vehicles in Brazil. Additionally, Brazil has other alternatives such as BioFuel and/or Hydrogen from NG or Ethanol competing with electrical plug-in vehicles to attend future GHG emission legislation. PSR
Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research
VW Truck and Bus has announced a new cycle of investment in Brazil operations of US$ 400 Million, for the period 2021 to 2025. This is higher than the last investment cycle, that was US$ 300 million that ended in 2020. This investment will be allocated in new products, mainly in alternative propulsion systems, such as electric, and improvements in the production facilities.
PSR Analysis: The investment reinforces VW’s Truck and Bus focus in the Brazilian market. Product development for Proconve P8 in January 2023 will use a significant part of the investment; investments also will be made in facilities adjustments for higher volumes of production in the coming years. PSR
Fabio Ferraresi is Director – Business Development, South America, for Power Systems Research
This investment is dedicated to the new generation of Ford Ranger, produced in Pacheco at the Great Buenos Aires since 1998. 70% of the investment will be for production facilities and 30% in the new product line development.
PSR Analysis: The production in Argentina is mainly for export. The main market for Ranger pickups is Brazil where they will compete with the GM S10 produced in Brazil and the Toyota Hi Lux produced in Argentina. PSR
Fabio Ferraresi is Director, Business Development – South America for Power Systems Research
Recently, European BP, Shell, Equinor and Total signed the agreement to meet the zero net emissions target by 2050. These companies see the Brazilian market as a key component in meeting this goal while they assemble the projects portfolio with Photovoltaic, Offshore Eolic and biofuel.
PSR Analysis: Brazil has a clean matrix and tradition in biofuel tradition since it began using Ethanol in the 70’s and 80’s. Some companies, such as Shell, operate with biofuel in Brazil, producing and distributing Ethanol, and plan to expand this position to meet future emissions targets. PSR
Fabio Ferraresi is Director Business Development – South America for Power Systems Research
Intercity transportation of passengers by highway buses started in a new phase with the beginning of the operation of the first full electric plug in bus. It is Marcopolo Viaggio 1050 bus, assembled on BYD D9A 20.410 chassis, operated by Turis Silva. This initiative is also supported by EDP Smart, a division of Energy Solutions of EDP, a company of the electrical segment.
Ford announced this month the production of the LCV Transit in Uruguay; it will be sold in South America countries, mainly Brazil. The LCV will be built in partnership with Nordex, which belongs to the Antelo group. Both companies have invested around US$ 50 million and the project will create 200 jobs. Nordex has extensive experience in the Uruguay market producing heavy trucks and passenger cars.
The Colombian auto market has retained its growth curve in October by posting sales of 20,900 units, up 13.3% compared to September, a month which also grew 39% above August. Data source: Andemos
The Andemos said this recovery is due to the increase of procurement for “safe transportation” as well as reopening of the economy and ending of personal isolation.
According to Andemos, if no new measures requiring isolation are taken, then the reduction compared to 2019 will be around 30%
PSRAnalysis: As we stated in our Q3 2020 update forecast, Colombia is one of the countries most severely affected by COVID-19. It is very good to know that Colombia is restarting its growth cycle. PSR
Fabio Ferraresi is Director-Business Development-South America, for Power Systems Research
Petrobras has concluded the test production of 40 million liters of diesel mixed with HVO from 2 million liters of soy. The regulation is still pending on ANP.
Once regulated, the HVO will compose part of the renewable mix at Diesel with the existing Biodiesel yielding better effects for engines and even less emissions. Today, the renewable content of the mix is 12% and it will reach 15% by 2023.
After selling 35 NG Trucks in Chile, Iveco announced the sale of 100 Stralis NP Cursor 13 NGs in Argentina for a supplier to O&G industry in the Southern country.
PSR Analysis: The acceptance from customers helps to remove a barrier to NG sales, transforming this technology from a Trend to a reality. NG was formerly more deployed in Buses than in Trucks. With the experience of fleet owners, the technology will gain scale rapidly in South America countries and accelerate the volumes in South American markets. PSR
Fabio Ferraresi is Director Business Development South America for Power Systems Research
Brazil recently published two trade agreements with Mexico, and, earlier in July, with Paraguay. The Mexican agreements cover Commercial Vehicles trade, with the reduction of import taxes progressively reaching zero by 2022. The agreement with Paraguay covers auto parts taxes from country to country. The taxes are now between 0 and 2% and will be zero in 2022.
PSR Analysis: The agreement with Paraguay is beneficial to auto parts makers on both sides of the border and helps to fight Asian competitors. With Mexico, the installed Truck Industry in Brazil is likely to expand exports to Mexico in coming years. PSR
Fabio Ferraresi is Director Business Development South Americafor Power Systems Research
