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Kawasaki Launches Hybrid Hydrogen Engine
JAPAN REPORT
Kawasaki Heavy Industries has launched a generator engine that runs on a mixture of natural gas and hydrogen. It can operate using a hydrogen blend of up to 30% by volume relative to natural gas. This is the world’s first product of its kind to be launched.
The newly launched 'Hydrogen-Blended Gas Engine' is based on existing natural gas-fueled power generation engines. Due to the explosion risk posed by hydrogen, it is equipped with safety devices and mechanisms to remove residual hydrogen…
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Sharing of EV Battery Data Supported by METI
Akihiro Komuro The Ministry of Economy, Trade and Industry says it will support the development of an industry-wide system for sharing information on the degradation status of EV batteries. Toyota and Honda will provide battery-related data to used car dealers, insurance companies and others. The aim is to prevent the export of used EVs overseas and enable the domestic utilization of batteries containing critical minerals.
Currently, battery degradation is difficult to assess, resulting in low trade-in prices for used EVs in the domestic market. The fact that approximately 80% were exported overseas was a cause for concern.
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Vietnam Shifts To EV Motorcycles
Akihiro Komuro Vietnam, a country known for its large number of motorcycles, is experiencing controversy over its electric vehicle policy. The policy bans gasoline-powered motorcycles in certain areas of Hanoi, the capital, and has caused a stir. Honda, which holds an 80% share of the local motorcycle market, must rethink its strategy because most of its models run on gasoline. This sudden policy change could also disrupt daily life for residents.
In July, the Vietnamese government outlined bold measures to regulate gasoline-powered motorcycles in “Prime Ministerial Directive No. 20.” Starting in July 2026, operating gasoline-powered motorcycles within the Inner Ring Road in Hanoi will be banned. The Inner Ring Road spans over seven kilometers and includes the city center, home to government offices, the Japanese embassy, and the historic Old Quarter, a popular tourist destination.
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BYD Delivers 90,000 vehicles to Thailand in three years
Akihiro Komuro BYD announced that it has delivered a cumulative total of 90,000 vehicles to the Thai passenger car market since entering it three years ago. Last year, BYD began producing EVs at its Thai plant. BYD is preparing to produce plug-in hybrid electric vehicles (PHVs) to further expand its market share.
BYD reported that 6,100 of the factory’s 6,900 employees are Thai nationals. BYD also announced that it will produce plug-in hybrid electric (PHV) sedans at the Thai factory. This will be the first time BYD has produced PHVs in Thailand. The factory has an annual production capacity of 150,000 vehicles. Expanding the range of models produced will increase consumer choice and the factory’s operating rate.
BYD entered the Thai passenger vehicle market in 2022 by exporting the EV SUV “ATTO3” from China. BYD is focusing on establishing local factories to expand into overseas markets. The Thai factory began operations in July 2024 and is positioned as BYD’s first full-scale passenger vehicle factory overseas.
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Major Shipbuilder Secures U.S. Military Ship Orders
Akihiro Komuro South Korea is collaborating with the government and private sector to strengthen its ties with the U.S. in the shipbuilding industry. Major companies, such as HD Hyundai Heavy Industries, are establishing bases in the U.S., and the government is supporting efforts to train individuals. They are taking advantage of the Trump administration’s push to revive the shipbuilding industry to gain a share of the market for building and repairing military ships. South Korea aims to catch up with China, which holds over half of the global shipbuilding market share, by leveraging its alliance with the US.
In late June, HD Hyundai emphasized its partnership with Edison Chouest Offshore (ECO), a U.S. shipbuilding company. The two companies plan to build LNG-fueled container ships together by 2028. ECO has five commercial shipbuilding bases in the US and specializes in offshore support vessels (OSVs); however, orders have been sluggish in recent years.
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What Will Happen in Hino, Mitsubishi Fuso Merger?
Akihiro Komuro Hino Motors and Mitsubishi Fuso Truck and Bus Corporation have reached a final agreement to merge their operations in April 2026, but what will this mean? A basic agreement was initially reached in 2023, but the decision was delayed due to irregularities in Hino’s engine performance certifications. The merger will finally move forward following Hino’s settlement with U.S. authorities.
The commercial vehicle industry has undergone rapid changes over the past two years of stalled negotiations, so both companies will need to quickly demonstrate the benefits of the merger to make up for lost time. The biggest change is the tightening of environmental regulations.
In May 2024, the European Union (EU) strengthened CO₂ emission regulations for large trucks. By 2030, emissions must be reduced by 45% compared to 2019 levels. This is an increase from the previous target of 30%. By 2040, emissions must be reduced by 90%, a very strict requirement.
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