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During the first 10 months of 2023, Brazilian On Highway Vehicle production faced challenges, with an increase in imports of approximately 58,000 units from January to October and a simultaneous drop in exports by more than 52,000 vehicles. The outcome was a stagnation in production, as only 1,950,000 passenger cars, Minivans and SUVs, light commercial vehicles, trucks, and bus chassis were produced. This marked a decrease of 0.6%, equivalent to almost 12,000 vehicles, compared to the same period in 2022, as reported by Anfavea on Nov. 8, 2023.
With a capacity of 53 passengers, Marcopolo’s model, the Audace Fuel Cell, is a road unit. The version of the product made in China that has been exhibited and already approved for Europe, carries the cylinders in the luggage rack. Kent Phang, the Sales Director of Allenbus, partner of Marcopolo on the FC vehicle, says there is also an option to place the hydrogen cylinders over the body. With four cylinders, the vehicle exceeds 500 kilometers, according to the company. With six cylinders it is possible to reach 900 kilometers.
Volkswagen has announced plans to introduce a pickup truck at its São José dos Pinhais plant in Paraná, Brazil, currently dedicated to assembling the T-Cross SUV. This new model, referred to internally as Project Udara, is part of the automaker’s €1 billion investment cycle in the country extending until 2028.
In addition to the pickup, the investment includes the development of two flex-hybrid vehicles, a new SUV, and a new engine, slated for production at the Brazilian assembly lines in São Bernardo do Campo and São Carlos.
The forthcoming pickup, larger than the existing Saveiro model produced in São Bernardo do Campo, is expected to feature a flex-fuel engine, with potential hybrid variants. Project Udara is set to be constructed on the MQB platform, and its launch is expected in early 2026.
Mercedes is exhibiting its electric bus chassis eO500U at Busworld in Brussels targeting other markets where the body is assembled over the bus chassis. Traditionally, the exports of Mercedes from Brazil are over 50% of the total production and it targets to expand this percentage with the new BEV, that has WEG drives, BorgWarner batteries assembled in Brazil with imported battery supplies.
PSR Analysis: While the push from São Paulo city to buy only BEV buses in the near future jeopardizes current chassis manufacturers business, it boos the development of BEV chassis and allow exports to other countries. Mercedes runs against the clock to compete with players like BYD and Higher with BEV chassis already developed. PSR
Fabio Ferraresi is Director-Business Development South Americafor Power Systems Research
The Azure A12 BR electric bus, from China’s TEVX Higer, has started operating in the South Zone of São Paulo. The vehicle has been put into use by Transwolff. According to the company, the 12-meter-long vehicle was made especially for the Brazilian market. It has a low floor and a suspension “kneeling” system. This feature provides more safety, comfort, and ease when boarding and disembarking passengers.
The bus has wide aisles and an access ramp at the central door. Thus, there is more accessibility for people with special needs related to reduced mobility.
Initially scheduled to begin Sept. 12, 2023, the auction of the federal program “Caminhos da Escola” was postponed indefinitely. A new date has not been set. The new stage, which provides for the purchase of 163,000 buses was eagerly awaited by chassis and body manufacturers, would have been delayed until 2024 because of the time needed for the production.
The reason is technical: according to the bidding notice published at the end of last month, important chassis manufacturers as Volvo and Merecedes would be excluded from the bidding process due to new certification demanded.
Gerdau, Vamos and Volkswagen Caminhões have formed a partnership to support the national fleet renewal program, aimed at removing from roads vehicles more than 20 years old.
The fleet renewal program provides for the purchase of low emission and more efficient vehicles by self-employed drivers and other operations. Under the plan, 140 acquired vehicles were sent to Gerdau’s headquarters in Araçariguama, which is responsible for their destruction and recycling.
At the same time, an extension for the incentives program of up to 1 Billion Reais, (US$ 200 M) was announced.
PSR Analysis: The total of resources and mechanisms to allow the access to the resources still are not sufficient for the program to impact the market significantly. However, the small inroads demonstrate the desire of Government and private entities to make changes and should impact the market going forward. More deployments and adjustments in the program should come in the medium term. We will keep monitoring and adjusting our short-medium term forecast as it progresses. PSR
Fabio Ferraresi is Director-Business Development South Americafor Power Systems Research
In the first seven months of 2023, manufacturers affiliated with Abraciclo assembled 887,000 motorcycles, up 14.3% over the same period in 2022. Registrations totaled 903,200, up 21.4%, including imports and sales from automakers not yet linked to the association, such as India’s Bajaj and Royal Enfield, which began production in Brazil at the end of last year. The entity’s expectations for 2023 are for expansion of 10.4% (1.56 million units) in production and 10.9% (1.51 million motorcycles) in licensing.
PSR Analysis: In 2011, Brazil produced 2 million units, its best year in the history of the segment. However, this year was the beginning of consecutive annual declines that reduced production to 890,000 motorcycles in 2016. The start of the rebound in 2018 was interrupted in 2020 by the shutdown of factories brought on by the pandemic. The industry finally looked to the future again in 2023 and expects to reach a volume of 2 million motorcycles within five years. PSR
Fabio Ferraresi is Director-Business Development South Americafor Power Systems Research
The increase in global demand for clean energy is accelerating investments in the exploration of reserves of so-called critical or strategic minerals in Brazil. Over the next five years in Brazil, companies are expected to invest approximately US$ 8 billion in key strategic minerals. In copper the expectation is that the resources will reach US$ 4.47 billion, while nickel is in second place, with investments of US$ 2.3 Billion forecast.
PSR Analysis: A significant part of the investment will take place in Construction and Mining Equipment such as Hydraulic Excavators, Heavy Duty Wheel loaders and Graders that helps to sustain and increase the growth in the segment in Brazil. PSR
Fabio Ferraresi is Director-Business Development South America for Power Systems Research
For the fifth consecutive year, Power Systems Research (PSR) will participate in the 20th SAE Mobility Forum in Curitiba-PR. This year’s event will be held Sept. 12and 13 at FIEP (Paraná State Industries Federation) auditorium.
This Forum brings together the most important companies in the Medium Heavy Vehicles and Off Highway Vehicles in Brazil. Originally, the event was called “Diesel Forum,” but with the new technologies of propulsion in the key segments covered by the forum, it changed its name to “Mobility Forum” in 2020. PSR Senior executives in South America are frequent speakers at the event, and support high level discussions on future trends and current challenges. PSR
