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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.
FPT Industrial has partnered with Agrale to supply the N60 CNG engine, powered by natural gas and biomethane, for the MA 11.0 GNV chassis. In Latin America, FPT increases it presence in the gas-powered bus market, supplying urban transport systems with low-emission engines that support decarbonization and air quality improvements while reducing CO₂ emissions.
A new equipment factory was opened in Uberaba, Triângulo Mineiro, March 13. With an investment of US$ 50 million, it created about 70 direct jobs in its first year.
The 96,000-square-meter facility focuses on developing, manufacturing, and providing technical support for coffee harvesters, corn seed equipment, and other agricultural machinery. It will also supply equipment for harvesting acerola, peas, and green corn in Brazil.
Brazil’s vehicle production in the first two months of 2025 reached 393,000 units, the highest since early 2021, marking a 15% increase compared to the same period in 2024. February demonstrated a significant 14.6% rise from the previous year and a 24% increase from January.
In the first bimester, car and light commercial vehicle production were at 289,800 units, up 12.5%, while Truck production was 20,000 units, up 10.5% and Bus chassis production was 4,000 units, up 11%.
The Argentine press confirms that Mercedes-Benz has sold its Sprinter factory in Virrey del Pino, near Buenos Aires, to an investment group called ST, led by financier Pablo Peralta.
According to local sources, the sale agreement will be officially late in February. Under the deal, ST will continue producing the Sprinter van under license until 2029.
The transaction does not include Mercedes-Benz’s heavy vehicle production, which will continue at a new factory in Zárate. The sale is linked to the upcoming shift to electric Sprinter models, as the company does not plan to invest in this transition in Argentina.
Motorcycle production and sales in Brazil reached record levels in January 2025,. Factories in Brazil produced 166,100 units, a 17.6% increase compared to January 2024 and 34% higher than December 2024. This was the best January performance since 2014, driven by expanded production capacity to meet growing demand. It is estimated that 1.88 million motorcycles will be produced in 2025, representing 7.5% growth compared to 2024.
Strong market demand and increased production capacity continue to drive industry growth in 2025.
BMW Motorrad has unveiled plans for seven new motorcycle launches in 2025, including six models to be manufactured in Brazil. The R 1300 GS Adventure will lead these releases. Recently initiated at BMW’s Berlin plant, its production will begin at the Manaus (AM) facility in early 2025. The model features a new two-cylinder boxer engine delivering 145 hp at 7,750 rpm and 14 kgfm of torque at 6,500 rpm. Its market debut is scheduled for Q1 2025.
In addition to the R 1300 GS Adventure, BMW will produce six other new motorcycles in 2025 at the Manaus plant, bringing its Brazilian portfolio to 13 models. To support this expansion, the facility’s production capacity will increase by 10% in 2025. This follows a 2023 investment of US$ 10 million, which boosted assembly line capacity by 13%. The goal is to increase output by 33%, reaching 20,000 units / year.
The São Paulo City Council has pushed back the deadline for CO2 reduction targets for the city’s bus fleet to 2054. This amendment allows operators to continue acquiring diesel-powered buses, contravening existing legislation. The bill now awaits the mayor’s decision for enactment or veto.
Volkswagen Caminhões e Ônibus, in collaboration with Suspensys, has unveiled the VW Meteor Hybrid, Brazil’s first hybrid concept truck. This vehicle features a diesel engine combined with an electric auxiliary axle developed by Suspensys, enabling intelligent traction management that optimizes performance, reduces travel time, and enhances fuel efficiency.
The intelligent traction system allows the third axle to become driven, transforming the truck into a 6×4 configuration when necessary. This provides additional torque for uphill climbs and improved starting power when towing a loaded trailer. Preliminary studies suggest that this setup can decrease travel time due to the extra power.
Additionally, the regenerative system recovers energy during deceleration and in areas with elevation changes, enhancing efficiency and battery storage. The extent of increased autonomy depends on the operation and route. Initial tests estimate that the Meteor Hybrid concept can reduce diesel consumption by up to 10%, depending on the operation’s topography. This directly impacts CO₂ emissions, potentially avoiding over 25 tons annually.
PSR Analysis. This concept aligns with Volkswagen Caminhões e Ônibus’s strategy for decarbonization, as it can operate solely on the diesel engine during long trips without the need for charging infrastructure. This flexibility is particularly useful for routes lacking charging stations, increasing the operational versatility of the hybrid model. PSR
Fabio Ferraresi is Director, Business Development, South America, for Power Systems Research
Volvo Construction Equipment has expanded its Brazilian manufacturing portfolio by localizing production of the A45G articulated hauler at its Pederneiras facility in São Paulo. This model, the largest articulated hauler produced by Volvo in Brazil, is now eligible for BNDES’s Finame financing program, that offers attractive rates and favorable payment terms.
The A45G is designed for industries requiring heavy-duty articulated haulers with a payload capacity of 41 tons, such as mining and heavy construction.
For more information on the OEM products market, visit OE Link, the Power Systems Research proprietary OEM products database.
The 35th MOVIMAT show brings together the entire integrated logistics chain for Latin America. Held in conjunction with the 2024 Fenatran International Road Cargo Transport Show in São Paulo, Brazil, the event attracted a diverse range of exhibitors, including buyers from industries such as distribution, wholesale, retail, and e-commerce, as well as the latest integrated solutions focused on Industry 4.0.
Over the five days of the fair, MOVIMAT provided an opportunity to explore new product launches, establish connections, and gain deeper insights into the forklift segment, particularly in terms of production and sales levels.
Notably, there was significant attention on the rapid growth of Lithium-Ion battery technology in the region. The South America Power Systems Research (PSR) team attended the event to learn more about these developments and the companies that are making them happen. PSR
Heitor Greco Aguiari is Analyst – Industrial and Off Highway at Power Systems Research