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New Restrictions for Import of Right-Wheel Engines to Russia Launched
New restrictions for imports of right-wheel engines to Russia became effective July 1. Completely barred from import are machines of the M2 and M3 class – trucks, buses, LCVs and construction machines.
Maxim Sakov On top of this, the procedure of Custom’s clearance of right-wheel passenger cars became more complicated. The owner of such car should obtain technical certificate, confirming compliance of car design to the safety requirement.
According to the Federal Customs Service, the amount of payments will depend on ecological class, production date, engine volume and other parameters. This will include processing fee, custom’s tax and utilization fee. Read The Article
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Rural Economy Helping Ride Out COVID Impact
With extended lockdowns in most parts of India, the production of all non-essentials was at a halt or at minuscule levels in April and May until the economy was unlocked. This move reduced demand in the short-term, but owing to intrinsic domestic demand, we are optimistic about future business expectations
Aditya Kondejkar Better Outlook of Rural Economy
However, hope has arisen from India’s rural part as the agriculture sector appears to have been relatively less impacted by the lockdown. This part of the country never truly went into a harsh lockdown, and thus procurement, harvest, and consumer activities have remained unaffected. Farming continued during the lockdown, especially for rice and wheat cultivation. The return of migrant workers caused a surplus of agricultural labor. This resulted in the fact – more land was brought under cultivation than ever before. As a result, the country has witnessed a good season of rabi harvest.
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Brazil CE Sales To Grow 15% Despite COVID
Fabio Ferraresi Construction Equipment Internal Sales in Brazil from January thru May grew 35% over the same period of 2019. The Brazilian Machinery Builders´ Association (ABIMAQ) expects 2020 sales to hit 20,000 machines, 15% more than in 2019.
Source: Valor Econônico Read The Article
PSR Analysis: The Construction segment was the less affected by the pandemic than some other segments. The interest reduction directed investment to real state, especially housing, and some measures, such as the new regulation for sanitation, recently approved by the parliament, will boost the Construction business in 2020 and more significantly in the coming years. PSR
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Europe Stage V Emissions Standard Officially Delayed
Regulation (EU) 2020/1040 to amend Regulation (EU) 2016/1628 on Stage V emissions for non-road mobile machinery (NRMM) was published July 17 in the Official Journal of the European Union.
Emiliano Marzoli This final step of the legislative process confirms that the 12-month extension of certain transitional provisions is officially EU law and is applicable retroactively from July 1, 2020.
This amendment to the Stage V Regulation extends by 12 months the June 30, 2020, and December31, 2020, deadlines for the production and placing on the market of NRMM and tractors fitted with transition engines <56kW and ≥130kW.
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Construction Machinery Sales Could Fall 18%
The market for construction machinery showed good results in Q1 2020, following ruble devaluation and the construction of hospitals. However, it began to decline in April, and the Association of European Business (AEB) expects an 18% decline for 2020 instead of the small growth forecasted earlier.
Maxim Sakov The most significant sales decline is expected for excavators, loaders and dump trucks. Only crawler tractors can avoid decrease, however, it’s still 32.6% worse than pre-crisis expectation.
Experts note that the largest decline is likely to be in more expensive applications, or where existing fleets have larger reserves. In cases where there are no support measures, the decline could be as much as 50% or more.
However, one positive signal is that there are no plans to reduce road construction projects.
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COVID-19 2020 North American Impact: Ag, -12%, Construction, -14%
HDMA-PSR COVID Webinar Presentation
COVID-19 continues to batter production of off-highway equipment as we continue to move through 2020. The effects of the virus on Agricultural and Construction equipment production in North America were analyzed in a June 17 webinar presented by the Heavy Duty Manufacturers Association (HDMA) and Power Systems Research (PSR). The webinar updated information presented in PSR’s webinar in April.
Jim Downey The PSR webinar team was Jim Downey, PSR vice president-global data products , and Yosyf Sherementa, PhD, PSR director-product management and customer experience.
PSR projects AG to be down 9.4% and CN to be down 11.3% when comparing global production for this year (2020) to last year (2019).
China and India which have the largest volumes for ag machinery are the lower side for production percentage drops this year. China which is also the largest producer of construction equipment is not expecting a decline this year.
Yosyf Sheremeta A slight recovery for Construction equipment is expected in 2021, but not until 2022 for Agricultural machinery. Ag sector recovery will ultimately depend on overall economic recovery from the COVID-19 pandemic.
The construction segment will not return to pre-virus production volumes for another few years, at best. We’re looking out to 2024 or possibly 2025 to get back to 1.48 million units.
We don’t see a V-shaped type scenario on the horizon in North America, but rather recovery will look like something between a “U” and an “L.” Somewhat of a swoosh shape or upward sloping L. Economic activity will slowly return to a sense of normalcy as the curve of new COVID-19 cases flattens.
Government support and intervention will be needed, and stimulus will provide an economic backstop. We expect modest growth in 2021. Pent-up demand and continued economic stimulus should also help with rebound.
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COVID19 Special Report – Brazil Market Update
Power Systems Research published in the June 13 issue of Automotive Business magazine a high level update on perspectives of MHV and Off-Highway segments. See the article at the link below and translated presentation.
Carlos Briganti Source: PSR at Automotive Business Read The Article
PSR Analysis: Although ANFAVEA published a decreased forecast, we believe that the decrease will be lower than the Light Vehicles decrease. Metrics we follow, such as Diesel consumption and…
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COVID-19 Webinar Scheduled With HDMA
Power Systems Research will work with the Heavy Duty Manufacturers Association (HDMA.org) to present a one-hour webinar examining the impact of COVID-19 on the industrial segments of Agricultural and Construction in North America.
The webinar will be presented Wednesday, June 17. Watch hdma.org and powersys.com for details. PSR
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Southeast Asia: COVID-19 Stalls China’s Belt and Road Initiative
Southeast Asia’s infrastructure development has begun to stall. China, which has been supporting the project, has been unable to proceed with its Belt and Road initiative for a broad economic zone due to restrictions on movement caused by the new coronavirus.
Akihito Komuro Southeast Asian countries also are prioritizing infection control and curbing the funds and human resources they invest in development. A major delay in the construction of infrastructure, which is the foundation of growth, could force foreign investors to reconsider their investment plans.
In Indonesia, work on a high-speed railway (about 140 kilometers) linking the capital Jakarta with the major city of Bandung was recently halted. The project is financed by a Chinese bank, and the state-owned company is involved in the construction. The opening is expected to be postponed from the scheduled 2021.
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Russia: KAMAZ Tests Driverless Trucks in Arctic
KAMAZ driverless trucks have been tested in the Eastern-Messoyakh oilfield in the Nenetsky region. The vehicles were driven 2,500 kilometers without accidents.
Maxim Sakov The joint project of Gazpromneft and KAMAZ was put together with support of region authorities in difficult climate conditions beyond the Polar Circle. The main target of tests was to determine the efficiency of driverless trucks, which would increase safety of cargo transportation and optimize supplies to territories with difficult access.
During the tests, the driverless trucks showed high potential to move on pre-set routes with high accuracy, to exchange information via duplicated communication systems, to recognize obstacles and forecast movements on actual environment.
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