Power Systems Research data and services are sold in Japan through our exclusive sales agent, Tohan Research. Please visit them at tohanr.com. A complete portfolio of databases, data extracts and survey services is available.
The Ministry of Economy, Trade and Industry (METI) now requires shippers that transport a large volume of freight to set a target of using 5% electric light-duty trucks by FY2030, which includes EVs and fuel cell vehicles (CVs), but not hybrids.
They will also be required to submit periodic reports on their progress toward this target. If the efforts are significantly inadequate, the committee can make recommendations to shippers and publicly announce the names of the companies involved.
Of the 800 major manufacturers, retailers, and other companies with large annual transportation volumes, those that are also involved in their own transportation or those that request exclusive transportation from a specific company are eligible for the program.
PSR Analysis: The fact that hybrids are not included in this goal effectively means that the next-generation development of light-duty trucks has been narrowed down to BEVs or FCVs. However, FCVs still lack hydrogen stations, and the construction cost of hydrogen stations is higher than that of EV charging stations, so the shift to EVs will be promoted first. Light-duty trucks are numerous and can be said to be the artery of domestic logistics. With about seven years to go until 2030, the number of vehicles that will be replaced by EVs will increase every year. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
Hyundai Motor Company is getting serious about developing the software needed for automated driving, etc. It has decided to invest $14.7 billion by 2030 and has begun building a development structure and embarking on M&A.
Hyundai Motor Company has achieved record profits through a shift in strategy in conjunction with a generational change. The company plans to further improve profitability in the software field, where customers can add functions to their cars after purchase. But acquiring human resources will be an immediate challenge for Hyundai.
The “Over the Air (OTA)” function, which updates the latest software via the Internet, will be standard on all new models released in 2023 and after. The plan is to establish a system that allows users to be charged according to function updates. The company will first introduce content such as car navigation systems, audio, lighting, and remote-control functions, and then expand into peripheral areas such as auto insurance policies, to diversify and upgrade services in response to customer needs.
Indonesia plans to introduce a subsidy program to encourage the purchase of EVs starting in 2023. The goal is to increase the number of EV users to 2.5 million by 2025 and reduce air pollution. The EV purchase subsidy program will be added to the list of EV policies introduced by President Joko Widodo over the past year.
Transportation Minister Boudi Karya Sumadi said the government is also considering subsidies for retrofitting internal combustion engine vehicles, but the government is carefully considering this plan because it would bring major changes to the labor-intensive auto industry. The Ministry of Transport plans to approach existing Indonesian automakers, such as South Korea’s Hyundai Motor and China’s BYD, to create an EV ecosystem for Borneo’s new capital city, he said.
Korean battery giant SK Innovation announced that it will expand its supply of batteries to Hyundai Motor Group in North America, and the two companies will discuss the construction of a joint venture plant to increase supply after 2025. SK Innovation says it plans to support Hyundai Motor Group’s increased EV production in North America.
In addition to EV production at its existing Alabama plant, Hyundai Motor plans to start operations of a dedicated EV plant in Georgia by 2025. Kia Motors, a group company, will also increase EV production in Georgia, as stable procurement of batteries, a key component of EVs, has become an issue.
SK On, a battery subsidiary of SK Innovation, already supplies batteries for Hyundai Motor’s mainstay Ioniq EV series. In the U.S., SK On produces batteries at its existing Georgia plant, and after consulting with Hyundai Motor, the company will decide whether to expand the plant or establish a new joint venture plant.
Honda announced that it will produce electric fuel cell powered vehicles in the U.S. in 2024. They will also be equipped with a plug-in function that allows them to be recharged externally. Honda has set a goal that all new vehicles sold by 2040 will be either EVs or FCVs.
In North America, its main market, Honda will offer FCVs as an option. The new FCV to be produced is based on the CR-V SUV model and will be manufactured in small quantities at the Performance Manufacturing Center in Ohio. The plant had produced the Acura NSX sports car until November. Since the plant has not yet developed a sufficient hydrogen supply base, it will be a plug-in FCV that can also be recharged externally. This is said to be the first production vehicle in North America to adopt such technology.
Honda has been developing FCVs for some time, introducing the FCX in 2002 in Japan and the United States. In Japan, it launched the FCV model Clarity Fuel Cell in 2016. However, due to sluggish sales, the company discontinued production of this vehicle in Japan in 2021.
PSR Analysis: Plug-in FCVs can run on electricity, fed by plug-ins, where there are no hydrogen stations. If FCVs are to be popularized at a stage where the hydrogen filling infrastructure is weak, a plug-in that can be charged from an electrical outlet may be the best combination. After filling up at a hydrogen station, which might be located far away, the vehicle could be operated by recharging its battery, and the hydrogen could be used as a range extender in case of power shortages. Of course, if a hydrogen station were to be established in the same neighborhood, it would be possible to switch to the same operation as at a gas station. The biggest barrier to sales expansion is the price. In the price competition, FCVs will probably lose out to BEVs. The availability and scale of subsidies for FCVs will have a significant impact on sales. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
New vehicle sales in the six major Southeast Asian countries totaled 317,765 units in September, up 33% from the same month last year. The figures were compiled from new vehicle sales statistics released by automobile industry associations and other organizations in each country. This is the 12th consecutive month that sales have exceeded those of the same month last year; the economic recovery from COVID-19 continues, with sales up 8% compared to September 2019, even before the spread of the infection.
Indonesia, the largest new vehicle market in the region, saw a 19% y/y increase to 99,986 units. This was the highest single-month sales volume in 2022. The tax exemption for some models ended at the end of September, and there appears to have been a rush demand for new vehicles.
Zio Holdings, a South Korean company engaged in the production and sale of electric motorcycles, says it has completed an electric motorcycle factory in Bac Ninh Province in northern Vietnam.
The factory covers an area of 1,300 m2 and has an annual production capacity of 12,000 units. The factory will receive parts supplied from original brand factories in Vietnam and China and will assemble the parts at ZIO EV’s factory in Vietnam.
The electric bikes to be manufactured at the new factory will be named “EDEN” and “MEVOYEZ,” and will use LFP batteries (lithium-ion iron phosphate batteries). The maximum speed is 55Km/h, and the driving range is over 150km. The selling price is expected to be 30 million VND (approximately 176,000 yen).
The full details of the government’s goal of a next-generation semiconductor development system have been revealed. Led by the Ministry of Economy, Trade and Industry, and in cooperation with the private sector and overseas countries such as the United States, a new company will be established to mass produce next-generation semiconductors, and a new R&D center will be launched. This is the first time that a comprehensive system for research and mass production of advanced semiconductors has been established.
The new structure has two pillars. The “LSTC (Leading-edge Semiconductor Technology Center)” will be established by the end of this year as a research and development center for next-generation semiconductors. The University of Tokyo, Tokyo Institute of Technology, Tohoku University, RIKEN, and others will participate in the LSTC, which aims to be an open R&D platform for both domestic and international use so that the results of research can be put to practical use. The company is also considering collaboration with the National Semiconductor Technology Center (NSTC), which is scheduled to be established in the United States.
The development of urban railroads in Vietnam has been significantly delayed. The opening of the second line in the capital Hanoi is expected to be delayed to 2027, and the first line in the southern city of Ho Chi Minh City may not open until the end of 2023.
In addition to financial difficulties, there are cases where administrative authorities are not proactively resolving problems, leading to further delays.
In mid-September, Hanoi City abandoned the planned Hanoi Urban Railway Line 3 (Nhon Hanoi Station), which was planned to run through the center of the city, to open by the end of the year. The line is 12.5 kilometers long. Construction of the line began in 2010, and although it was originally planned to open in 2015, it is believed that the plan has already been changed about five times.
The Hyundai Motor Group and telecommunications giant KT have formed a capital and business alliance. The two companies will invest about 750 billion won in each other by exchanging their shares.
The two companies will jointly develop communication-related technologies to produce autonomous driving equipment. In addition to automobiles, Hyundai Motor is expanding its business in the fields of robotics and urban air transportation (UAM, or flying cabs), and has decided that partnering with KT will enable it to accelerate research and development in fields other than automobiles.
