Exports of Russian AG machines more than doubled in Q1 2021 versus the same period in 2020; exports have reached US$ 53 million (3.9 billion rubles).
Rosspetsmash, the Russian Association of Manufacturers, notes that Russian OEMs showed record high figures for 2020, reaching US$ 214 million (15.9 billion rubles). For Q1 2021, Russian AG machines were shipped to 23 countries. Exports of AWD tractors are up by 2.8 times, and combines, by 46%. The exports to Germany have increased by five times, to Bulgaria by 65%, and to Poland by 49%.
KAMAZ has reported a net profit of (more than US$ 20 million (1545 million Rubles) for 2020. KAMAZ reported revenue for 2020 of US$ 2.47 billion (185.8 billion Rubles), an increase of more than 16% over 2019. This growth is based on domestic truck sales, the introduction of the K5 range, and an increase in bus and electric bus sales.
Despite the COVID pandemic, in 2020 KAMAZ secured positions in the market and has claimed the status of leading Russian heavy vehicles supplier. The company claims a leader position in the 14+ ton truck market in Russia with a share of 47.5%, up 3.3% over 2019.
PSR Analysis: Of course, State support measures are a big part of this success. Still, domestic truck and bus production has demonstrated good survival potential even in a major pandemic. PSR
Maxim Sakov is Market Consultant – Russia Operations, for Power Systems Research
(April 1, 2021)–After the GDP declined 3.5% last year, the worst performance in almost 75 years, the US economy is set for a strong comeback. In fact, we could see GDP growth exceeding 6% this year.
There are many reasons to be optimistic about 2021. Strong readings of macro-economic factors combined with the economic cycle reset backed by the government initiatives and policies support our estimates for the current year and beyond.
Our positive outlook is based on the reviews of the key economic indicators, including GDP, unemployment, and inflation. In our previous forecasts, we discussed recovery trends for the post-pandemic period, stating a return of demand for most markets in 2021, especially during H2 2021.
Based on our analysis of the expected growth trend and the economic reviews in major publications, we think US growth can surpass the growth level from 1984 – the highest one since 1950s.
Current and Future Supply Chain Concerns For Medium and Heavy Vehicles Will Be Discussed
Erik Martin
Chris Fisher
Power Systems Research will produce a one-hour webinar with the Heavy Duty Manufacturers Association (HDMA) discussing current and future supply chain concerns, especially as they affect Medium and Heavy Commercial Vehicles.
When? Wednesday, April 21, 2021 from 1:00 – 2:00 pm ET
What? Future areas of supply chain concerns, secondary effects of logistic and shipping issues, and current economic conditions and demand drivers.
How much? FREE for HDMA members; $100 for non-members
The scheduled presenters include
Chris Fisher – Senior Commercial Vehicle Analyst, Power Systems Research
Erik Martin – Director, Asia Region, Power Systems Research
Richard Anderson – Director, Market Research & Analysis, HDMA
How do I register? By clicking below!
Space is limited, so please register as soon as possible using the REGISTER NOWbutton on the HDMA website at www.hdma.org. If you are not a PSR Client or HDMA Member, an individual registration is $100.
Hope you can participate. During the session, we’ll discuss the future areas of supply chain concerns, secondary effects of logistic and shipping issues, and current economic conditions and demand drivers, especially as they apply to Medium and Heavy Vehicles.
Richard Anderson will present the latest findings from his current PULSE member survey, and the session will conclude with a participant Q&A. PSR
After freezing all investment last year due to the Covid-19 pandemic, GM is now resuming its investment program of 10 billion of Brazilian Reais, equivalent to US$ 2 billion. The program funds new vehicles, infotainment systems, as well as modernization of the plants in Sao Paulo state.
PSR Analysis: GM has kept and amplified their market leadership position in Brazil. In 2020, they moved into second place. Their continuous investment on new products and productivity has been recognized by the market. PSR
Fabio Ferraresi is Director Business Development, South America, for Power Systems Research
SUMMARY. In our previous forecasts, we have discussed some hope for a V-shaped recovery, it did not materialize. Our conclusion was based on several factors, such as the current economic cycle, overall strength of the economy, fiscal policy, political landscape in the US and globally, etc. After managing through the early stages of the pandemic in H1 2020, we saw good trends in H2 2020 and we had reasons to be optimistic for a quick recovery.
However, the recovery took a slight pause during the last few months. Unemployment continued to increase, and regional lockdowns prevented the necessary demand for a significant year-end growth. Now that the elections are over, we’ll have yet to see what the new administration will be able to achieve during the next two years. Specifically, if the long awaited infrastructure reform can be passed. However, fiscal policy with near zero interest rates, which government has promised to keep in place for the near future, will provide a good platform for the economic recovery and allow us to look optimistically into 2021-2022.
SUMMARY. The global economy, especially within the Engine, OEM and Components industries, has felt the immediate impact from COVID: assembly line shutdowns, labor issues, supply chain issues, logistics and transportation to name a few. The pandemic has exposed many weak links in the global economic chain. However, by end of summer, most of these challenges were either completely resolved or temporary solutions had been put in place.
Yosyf Sheremeta
Diversification has become the theme during the pandemic recovery, and we expect this trend to continue. Not only are companies looking for new markets and suppliers to grow top and bottom line revenue as well as to minimize risks, but we see a shift into new industries. Furthermore, rapid developments of new technologies create massive opportunities for OEMs and suppliers as well as posing real threats to OEMs that solely rely on traditional products that are powered by fossil fuels.
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.
Download our special report CORONAVIRUS, Impact on the global production for engines and powered equipment. Available April 15, 2020.
Joe Zirnhelt
Over the first quarter of 2020 the concern over the coronavirus has grown each week. Since first hearing the news out of China and the virus’ spread to South Korea, we have been able to observe the effects on supply chains and production.
Time is of the essence
Although news and concern increased since that time, the week of March 10 and the classification of the coronavirus as a pandemic by the World Health Organization dramatically shifted many measures into action across the globe.
SUMMARY. The North American economy remained stable in 2019 and pure economic conditions as well as fundamentals in the region were favorable. Most industries performed very well, and the short-term outlook remains stable to flat for most market segments. However, we see many new developments that could suggest a shift in the trend.
Yosyf Sheremeta
Consumer confidence declined slightly in December, following
a moderate increase in November. The
Conference Board’s Consumer Confidence Index stood at 126.5 in December, 1.4
points higher than in September 2019.
Per Lynn Franco, Senior Director of Economic Indicators at
The Conference Board: “While consumers’ assessment of current conditions
improved, their expectations declined, driven primarily by a softening in their
short-term outlook regarding jobs and financial prospects. While the economy
hasn’t shown signs of further weakening, there is little to suggest that
growth, and in particular consumer spending, will gain momentum in early 2020.”
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