The initiative includes automation systems across assembly processes and aims to strengthen the company’s local manufacturing footprint in response to demand in the construction sector. The move supports domestic supply capability and aligns with broader industry trends toward digitalization and advanced manufacturing in heavy equipment production.

Source: Revista MT     Read The Article

PSR Analysis. The investment in automation reflects the Chinese-German company’s belief in South America Construction Equipment, as it gains productivity and brings cost optimization. Benefits include improved scalability and quality control, though returns depend on sustained construction activity and fleet renewal cycles.

The project is in an expansion stage, with competitiveness linked to localization levels and supply chain resilience. With the investment, capacity should reach 480 units per year.  PSR

Exported from Brazil, Mercedes-Benz Axor Debuts in Argentina
Mercedes-Benz has introduced the Axor heavy duty truck in Argentina, supplied from its Brazilian manufacturing base. The model targets long haul and regional freight applications and expands the brand’s portfolio in the Argentine market, leveraging Mercosur trade integration.

The launch occurs amid a challenging macroeconomic environment in Argentina, with demand shaped by currency volatility and restricted financing conditions. The Axor strengthens Mercedes-Benz’s regional product strategy by aligning Brazilian production with export demand across South America.

Source: Automotive Business    Read The Article

PSR Analysis. The Axor launch highlights continued reliance on Brazil as a regional manufacturing hub for heavy duty trucks within Mercosur. Market penetration will depend on Argentina’s macro stabilization and freight sector recovery, while currency risks remain a structural constraint. The move supports capacity utilization in Brazil and reinforces cross border supply chain integration. Competitive pressure will center on pricing, financing availability and operating cost efficiency in a constrained transportation market.   PSR

The electrification of the construction machinery industry in China continues to accelerate. For example, CATAL and Longgong have signed a strategic cooperation agreement in Ningde, Fujian, a move that follows the January cooperation agreement between CATAL and Lingong Heavy Machinery. According to the agreement, both parties will expand cooperation in the development and production of construction machinery, the development of power batteries for construction machinery, and jointly research and develop adaptive products and market promotion to jointly explore the new energy construction machinery market.

More and more construction machinery companies are turning their attention to the electrification market. Domestic and foreign engineering machinery companies such as XCMG, Sany, Zoomlion, and Carter have developed and launched electric products such as loaders, excavators, and mixer trucks.

In 2023, the total sales of electric loaders increased by 2,435 units compared to the same period in 2022, a year-on-year increase of 209.9%. However, the overall electrification of the construction machinery industry is still in its early stages and the penetration rate is not high. In 2022, only 0.04% of off-road equipment globally was electrified, and the electrification penetration rate in large construction machinery such as excavators, bulldozers, and large loaders was less than 1%.

Although new energy engineering machinery has significantly improved in terms of endurance and power performance, there is still a technological gap compared to traditional fuel powered machinery, and there is a need to improve technical factors such as battery energy density, cycle life, and low-temperature performance.

In terms of cost, the manufacturing cost of new energy engineering machinery is relatively high. At the same time, the construction speed of charging facilities and maintenance networks remains a limitation, since it does not match the growth of market demand for new energy engineering machinery.

However, in the long run, industry insiders indicate that with the development of battery technology and cost reductions, the electrification of the construction machinery industry is expected to accelerate in 2024. The energy consumption cost of new energy engineering machinery is being reduced, construction efficiency is improving, and the economic cost of companies is significantly reduced, achieving a win-win situation of economic and ecological benefits.

Source: EEO     Read The Article

PSR Analysis: With the decline of China’s domestic economy, sluggish demand for construction machinery, and increasingly fierce market competition, some foreign-funded companies have begun to consider reducing the scale of Chinese engineering or departing the Chinese market altogether. Companies are putting more resources into the development of new models, expansion in the new energy sector, and growth of overseas markets.

Presently, the main product inventory of domestic construction machinery exceeds 9 million units, and it is growing at a rate of about 300,000 units per year. The penetration rate of new energy construction machinery is less than 1%. Against the backdrop of policy promotion and environmental pressure, the penetration rate of electrification of construction machinery will rapidly increase in the coming years, with an expected penetration rate of over 30% by 2025.

Compared with traditional fuel engineering machinery, electric engineering machinery has a long service cycle, high utilization rate, low operating costs, and the dual advantages of environmental protection and performance, making it more economically efficient overall.

Batteries account for 40% to 50% of the total cost of electric construction machinery. The main purpose of engineering machinery companies entering the battery field is to promote the development of their products. But currently, the main battlefield for batteries is still passenger cars. PSR

Jack Hao is Senior Research Manager – China for Power Systems Research

As a hidden incremental market, electrified construction machinery needs to continuously expand its application areas. Manufacturers and battery production enterprises need to continue to innovate and collaborate in technology, further reduce battery costs, and improve battery life in order to accelerate the electrification process of construction machinery.   PSR

Mixers are used by a variety of industries, especially for construction applications, and mix an assortment of materials. Power Systems Research tracks the North American production of two types of mixers: one used to produce asphalt and one for mixing mortar or concrete. Asphalt Mixers/Agitators are used to manufacture asphalt, macadam and other forms of coated road stone, often called “blacktop.”

A Cement/Mortar Mixer is a mechanical mixer that uses rotating paddles attached to a horizontal axle to blend the mix ingredients of mortar or concrete.

This product information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink , which provides information on engines, and OE Link, a database of equipment manufacturers.

Battery/Corded Electric Units: Production of electric units are expected to increase by 23% in 2023 over 2022, climbing 1,300 units to about 6,800 units this year powered by either battery or cords. In 2023, electric units (battery and corded) will be about 2% of total North American Mixer production. PSR

Carol Turner is Senior Analyst, Global Operations, for Power Systems Research

Best known for its world-class transport solutions, Volvo unveiled its first commercial electric truck –the Volvo FL Electric – in 2019, this was followed by the Volvo VNR Electric in 2020. Volvo introduced three 44-ton electric trucks this past September, some of the heaviest in its line up, bringing its portfolio to six commercial EV trucks, designed to cover everything from city distribution and handling to construction transport and regional hauling.

Volvo’s latest zero-emission heavy-duty solution, the FMX electric concrete mixer truck, is a big step toward eliminating emissions in the construction industry. Volvo says the EV truck will begin operating at a ready-mix concrete plant in Spandau in Berlin this month

Source: Electrek: Read The Article

PSR Analysis:  The construction industry (and cement in particular) is one of the biggest culprits of toxic CO2 emissions due to the strenuous demands that are required in the industry, so Volvo’s latest electric concrete mixer is massive news for the construction industry. Electrifying concrete transportation has been challenging due to the heavy loads and continuous mixing demands.   PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

Volvo Construction Equipment (Volvo CE) has started testing its prototype “HX04” Hydrogen Fuel-Cell Articulated truck.  Carolina Diez Ferrer, Head of Advanced Engineering Programs at Volvo CE expects that this prototype will “give valuable insights into the opportunities of hydrogen in the energy transformation alongside battery-electric solutions.”

The on-going development of the hauler began in 2018 and experienced partnerships with different Swedish institutions and companies.  Fun fact: The machine is nicknamed “Electric Charlie,” a homage to “Gravel Charlie,” the world’s first Articulated hauler produced by Volvo in 1966. 

Shell has been involved in the project, supplying the Hydrogen refuelling station for Volvo’s test track.  The Volvo HX04 is charged with 12 kg hydrogen in about 7.5 minutes, enabling it to operate for approximately four hours. Fuel cells work by combining hydrogen with oxygen and the resulting chemical reaction produces electricity which powers the machine.

In the process, fuel cells also produce heat that can be used for heating the cab. Fuel cells only emit one thing – water vapor.  Vehicles with fuel cell electric powertrains have an uptime, range, and fueling time similar to that of combustion engine powered vehicles.

Source:  Volvo     Read The Article

PSR Analysis: Volvo CE development of the HX04 has particular value.  So far, most of the alternative drive construction machines have been small products, mainly battery powered.  Mixers, Tampers, Rammers and Concrete Finishers were the most popular electric products in 2021, with Wheel Loaders, the first large machine type, representing 8% of the total electric products, according to the Power Systems Research proprietary database OE Link. 

Source: Power Systems Research OE Link

This development is especially important, considering that fuel cell machines are even rarer, with just another prototype from JCB.  This project will help define the future of the segment and drive its sustainability.  However, we do not expect to see significant volumes, before at least 2030. 

While products need to be refined and tested, the refuelling infrastructure will remain a critical limiting factor.  Considering the current range of operations and refuelling, Fuel Cells would represent a solid and serious alternative to internal combustion engines.  According to political agendas around the world, we will see different development and adoptions of these machines, but it is not surprising that Volvo is at the forefront of this transition, a revolution that could change completely the Construction machinery Industry.  PSR

Emiliano Marzoli is Manager – European Operations for Power Systems Research

The CTT Bauma trade show is main event of construction industry in Russia. Since 2017 it’s owned and operated by Messe Munich. The show was conducted this year in Moscow May 25-28 in its usual place, the Crocus Expocenter. Last year, the fair was off because of the COVID pandemic, but this year we saw that both the exhibition and construction industries are showing a growing trend. The fair’s indoor exposition was restored to three pavilions, and the outdoor exposition also grew in size versus 2019. There were 351 exhibitors from 17 countries, somewhat better than last time. A total of 184 brands were represented.

Here is, however, one unpleasant factor. Most of the international OEMs did not participate in the fair this time. Wirtgen, Volvo, Cummins, Caterpillar, Ammann, Hyundai, Renault, Komatsu machines were missing from this fair. John Deere, Doosan, Kato, and some other brands were limited, having only small booths, set by the local dealers. Many Russian machine makers, who usually participate in the fair, also ignored the event. Among them – GAZ, Chetra, DST-10, Chelyabinsk Tractor Plant, YAMZ.

The most obvious reason for this limited participation is a lack of interest in these mass events by sellers. Given the growing market, the companies do not see a reason to spend resources on expensive trade shows with doubtful pay-back. Large companies are focusing on direct relationships with large customers such as the State, which is the largest one. Smaller companies still consider participating in the fair as useful.

There were many companies from Germany, Italy, Finland, Switzerland, and Belgium. Putzmeister and MG were a few foreign companies, who kept the tradition to participate in the fair over the years. Japanese Kubota showed their small diesel engines and gen-sets. A Honda distributor presented a range of its compact engines for various applications, but Belorussian Amkodor reduced its exposition to one single grader.

Meanwhile ,the vacant places were taken by the Turkish and Chinese companies. Although Turkish Hydromec was absent, many other companies, most of them unknown to the Russian market, were participating. Among them were Gosmaksan, Ermak, and Gelen. They were supported by the Istanbul Chamber of Commerce and Exporter’s association.

China did not set up a national exposition, but Chinese machines were shown by their companies in large numbers. Zoomlion has set a comprehensive range of their machines, including cranes, dozers, concrete mixers, excavators. XCMG also took a big part of the outdoor exposition and showed its road construction machinery, including graders, dozers, rollers, excavators and so on. SEM construction machines were shown by its distributor Zeppelin. SDLG, Weichai, Sunward, JAC, Hongyan showed smaller exposition. So, at the end of the day the number of the Chinese machines on the fair was second after machines made in Russia.

Trucks (especially dump trucks) represented a significant part of the fair. Besides traditional KAMAZ, MAZ, Ural, there were significant fleets from Mercedes. OEM shown 6 Arocs trucks and Unimog communal machine. There were also trucks from Scania, Fuso and MAN. All of these trucks are assembled in Russia, with one exception – Unimog is of German origin.

Russian companies made up a vast majority of the exhibitors. KAMAZ showed 8×4 and 6×4 dump trucks with P6 910.15 engines, developed together with Liebherr. Another feature in the KAMAZ stand was a driverless truck, equipped with AI, side radars and a number of cameras. This truck can be operated without use of satellite navigation. The prototype is being tested now, but the date of mass production is unknown.

Sankt Petersburg Tractor plant showed its K-708 wheel loaders. UMG Group (part of Russian Machines presented wheel loaders, excavators and the large mulcher M-300 for the forest industry. Klintsy plant, besides truck-chassis based cranes, showed its self-propelled crawler crane, powered by a YAMZ engine. Rybinsk Dormash presented a modified vibration roller with new original cabin.

Smaller companies showed some interesting machines. Kameshkovsky Mekhanical Plant showed a new skid steer loader Vladimir. It has Xinchai 48hp engine. The rest of components are local made, according to the company representative. They plan to make and sell at least 20 units in 2021. Mitrax, from St. Petersburg, showed a mini loader with articulated frame. The OEM claims that its price and operational cost are lower than for skid steer loaders, and the machine is more efficient. The company with same location – Katrina – also showed a mini excavator. The machine weights 770 kilogram and can be used both indoors and outdoors, since it’s possible to get it through a regular doorway. Now, the machine is assembled from foreign components, but the plans call for them to use local components. 

We see that the Bauma CTT fair is quite modest. At the same time, practically all the market participants in the fair are talking about the active growth trend in the Russian construction industry. Some of them are even talking about an “overheated market”. So, according to AEB, the construction machinery market in Russia has grown by 25% Q1 2021. Similar growth is expected through the end of this year, then the growth will remain, but at a slower rate.

The main factor driving this trend is pent-up demand from 2020, increased export demand and continued State support for the industry. For example, the State is subsidizing the creation of new components for the construction machines. It sponsored transport expenses during export (as a result, it’s sometimes cheaper to sell a machine to Africa, than to Russian Far East). Compensated leasing payments is also powerful tool. It has helped to increase production by 30% on average.

Restrictive measures are also working. For example, the anti-dumping tax for Chinese dozers below 250 hp, set by Euro-Asian Economic Commission, are still in force. The size of this tax varies from 9.65% to 44.65%. It was established in November 2015 for five years and should have expired last November. However, authorities decided to make an additional investigation regarding possible dumping, and extended the restriction until the end of investigation, which should be completed at the end of July 2021.

After this, it’s a high chance, that the restrictions will be continued for the next five years. Despite this situation, Chinese OEMs are optimistic regarding the Russian market. XCMG is planning to increase supplies to Russia by 1.5 times. Zoomlion has opened the official representation in Moscow in 2021. We should note that the quality of Chinese machines has increased significantly during recent years. So, they have a good chance to take a big market share in Russia. For current statistics, China takes about 50% of dozer imports to Russia. The leader here is Shantui with 30% (this OEM did not participate in the fair). Only problem with these machines is a weak service support.

Russian OEMs are also optimistic about the market. They grow their share in the market to 43% (from 20%), and are going to increase it further, to 50% and more. Local dozer and loader maker Chetra, claims that for four months of 2021 they have increased production by 40%. The export figures are up by 200%. International OEMs are not so happy, because to get the privileges, they have to set more production plants in Russia. Volvo get frozen out of its project to make excavators in Russia. The reason – according to the SPIC (Special Investment Contract) they have to localize engine production. They estimated their market size for 5000 engines, whereas their expectations were on the level of 30,000 units. So, the project was cancelled (or, at least, postponed).

The clear negative factor for the Russian machinery market is raising prices for metal. It started last year and now continues. Metal products have increased in price by 50%-80% for the year. In the worst case, the current growth trend may be interrupted by the rising metal prices. Actually, it is an old problem, which was discussed even five years ago, but now the government is working out measures, which are very unpleasant for local metallurgic companies. Among them are compulsory sales of metal by fixed prices, increased taxes, export restrictions and some others.

Recently, Russian vice-prime minister Belousov has blamed owners of metallurgic companies for “greediness” and told them that they have to share their extra incomes, including returning to State budget US$ 1.5 billion (100 billion rubles) of “unjustified enrichment”. Taking into consideration the trends in Russian hierarchy of power, this claim will be fulfilled, and Russian machine makers will have more time to adjust to the growing steel prices in more friendly environment.

Finally, market players have shared their vision of the global trend in construction market development. Foreign companies were talking about changes in fuel environment. They expect to get out of diesel engines. Smaller machines could be powered by electric batteries, whereas larger ones will use hydrogen as a fuel.

Local experts were talking at the fair about changes in component production. Metal parts could be replaced by parts made of carbon, aramid, and plastic. Classic process of production could be replaced by additive technologies, such as 3D printing. Prototype tests will be changed by computer modelling, which will reduce the R&D process from years to weeks and days. And manual operations of machines will be transferred to autopilots, neuron networks and AI. PSR

Maxim Skov is Market Consultant in Russia for Power Systems Research