Follow PSR’s team of analysts as they track the rapidly expanding global battery electric power market, including, battery technology, transportation, eMobility, mergers and acquisitions and more.
Komatsu began introducing hybrid construction equipment in Indonesia this spring. Equipped with an engine and electric motor as the power source, these machines can improve fuel efficiency by 20-30%, compared to conventional machines.
Chinese manufacturers are pushing low-priced construction equipment, and are now rivaling Komatsu, which has a stronghold in Indonesia, in terms of market share. With fuel prices rising sharply, emerging countries are also becoming more environmentally conscious. Komatsu is fending off Chinese competition with its highly fuel-efficient construction equipment and is tapping into demand for decarbonization.
In Indonesia, the largest construction equipment market in Southeast Asia, Komatsu has launched a hybrid hydraulic excavator. Equipped with a hybrid system developed in-house, the excavator’s swing unit is electrically powered. When turning the body, including the arm and driver’s seat, from side to side, the energy generated during deceleration is used to generate electricity, which is stored for future use. The company plans to market the system to nickel mine developers and others, where demand for EV batteries is growing.
The European EV market is expanding, and in the UK, Korean-made EVs are gaining popularity as vehicles that are more affordable than Tesla’s and that offer superior performance.
Last year in the UK, the Tesla Model 3 ranked second in sales of all passenger cars by model, marking the “first year of EVs” in earnest. However, the popular Tesla cars are not inexpensive, costing about three times as much as similarly sized gasoline-powered cars. On the other hand, Hyundai and Kia cars are priced at 60-70% of Tesla’s Model Y and have been a hit with environmentally conscious 30–40-year-olds who had been putting off purchasing EVs because they wanted to replace their cars with EVs but thought Tesla were too expensive.
A major reason for the high support for Korean-made EVs is their price competitiveness. In terms of corporate car leasing prices, Tesla’s Model Y costs 40 pounds per day (for a three-year lease), while Kia’s low-priced e-NIRO EV costs less than 20 pounds per day, about half the price. While the price may be reasonable due to the large difference in vehicle quality, the figures are enough to shatter the preconceived notion that EVs are expensive.
UK EV Market Share by Brand (Feb-April 2022)
Tesla, 25.2%
Hyundai & Kia, 14.6%
VW Group, 13.6%
Stellantis, 12.9%
BMW Group, 8.9%
Mercedes, 6.7%
Renault-Nissan, 4.4%
Others, 13.4%
The reason why Europeans have no resistance to “Korean-made EVs” has to do with historical backgrounds other than vehicle prices and tax benefits. Korean-made cars are highly regarded in Europe, and Korean cars have an extremely high share of the compact car segment in Europe. This is due to the fact that Korean automakers have aggressively expanded their factories into former Eastern European countries, where wages are low but skill levels are high; Hyundai and Kia established production bases in the Czech Republic and Slovakia, respectively, soon after both countries joined the European Union.
PSR Analysis: As mentioned above, many potential buyers believe EVs are more expensive than conventional engine models. Hyundai and Kia are successfully implementing mass-market EV strategies in Europe, where EVs are most prevalent, in order to overcome the sales slump caused by this image. IF the Korean carmakers can overcome this mis-perception of pricing, it will make a big difference in acceptance in this important EV market. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asiafor Power Systems Research
Last month, I visited the three-day 2022 NEW Environmental Exposition, an exhibition of environment-related equipment in Tokyo. The show promoted the effective use of resources, new energy and energy reduction, and the utilization of CO2 emission reduction technologies
PSR Analysis: The exhibition featured many environment-related devices for waste treatment, demolition, bioplastics, water treatment and purification, heat utilization systems, recycling, and more.
Large equipment such as those that crush and efficiently separate debris mixed with earth, sand, and wood; metal recovery systems from seawater using special fibers, and equipment related to crushing wood, stone, and other materials were eye-catching in variety and size.
BEIJING— Chinese electric vehicle (EV) and battery maker BYD is going to become Tesla’s battery supplier for the first time, a senior executive at the company backed by Warren Buffett’s Berkshire Hathaway said recently.
“Tesla is a very successful company. BYD has great respect for Tesla and raises our hat to it,” said BYD’s executive vice president Lian Yubo in an interview with the state-owned news channel China Global Television Network (CGTN), when he was asked his thoughts of China-made vehicles in comparison with Tesla. “(Tesla CEO) Musk and us are good friends now as we are preparing to supply batteries to it very soon. We learned a lot from Tesla,” Lian added, noting the U.S. rival’s positioning itself as a high-end EV brand.
Lian’s remark suggests BYD is set to be the second China-based battery supplier of Tesla next to CATL, the world’s largest EV battery company. LG Energy Solution, the South Korean battery maker second to CATL, and Tesla’s long-time partner Panasonic currently are another two battery makers in Tesla’s supplier list.
Brazilian-based Marcopolo has expanded its product line of renewable and zero-emission fuels. Volgren, a company owned by the Brazilian manufacturer, is Australia’s largest bus producer. It has signed an agreement with Wrightbus, an Irish bus manufacturer, and market leader with Hydrogen technology in Europe, to develop and launch hydrogen fuel cell-powered buses for the Australian market.
The first units of the Volgren-Wrightbus are expected by early 2023. The vehicles will be the first Hydrogen buses in Australia to be built by a local manufacturer using European fuel cell technology.
PSR Analysis: Marcopolo is committed in its strategy on new propulsion, either with their own EV chassis in Brazil or with the H2 chassis in other markets, such as the Volgren in Australia. It enables Marcopolo to compete better in growing markets while it keeps its position in ICE markets with its current products. PSR
Fabio Ferraresi is Director-Business Development South Americafor Power Systems Research
Heavy vehicles using electric axle systems in the trailer now can be driven on Brazilian Roads, following approval by the National Traffic Council (Contran) at its meeting in May.
Suspensys, a Brazilian company part of Randon group launched the product at Fenatran of 2019, but only now has it been approved by traffic authorities.
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.
The global e-motorcycle market is changing almost daily as market share leaders develop new products and new companies continue to enter the market with competitive products. Here’s an update on several leading e-motorcycle OEMs.
Tork Motors has launched the Kratos electric motorcycle in the Indian market. The new Tork Kratos will be sold in two variants – Standard and R and will be available across India in a phased manner. In the first phase, this e-motorcycle will be available in Pune, Hyderabad, Bangalore, Chennai, Ahmedabad, and Delhi. The electric motor on the base model makes a peak power output of 7.5kW or 10.05bhp and a maximum torque of 28Nm. Tork has a manufacturing capacity to make about 500 units a month at its pilot plant and about 4,000 units a month at its new plant at Chakan near Pune.
The global e-motorcycle market has experienced high growth in the last couple of years, fueled in part by the declining price of Lithium-ion batteries. The battery is one of the most expensive components of an e-motorcycle, and changes in the price of Li-ion batteries affect the entire cost of an e-motorcycle. The cost of Li-ion batteries has been steadily declining, and this trend is likely to continue.
Power Systems Research has forecasted the global CAGR for electric motorcycles, at 11% for the years 2022 – 2027.
Drivers-of-Demand for this forecasted growth are:
Increased environmental concerns.
Higher fuel efficiency of e-motorcycles compared to conventional motorcycles.
Increased demand for sustainable transportation.
New incentive programs for e-motorcycles driven by government units.
Advancements in technology such as high-speed handling, smaller/compact size, quicker acceleration, and reduced motor weight.
Introduction of fast-charging stations.
COVID-19 virus played a vital role in increasing the demands for the e-motorcycle. Pandemic halted the manufacturing of vehicle components and OEM parts for conventional motorcycles and available e-motorcycles in the market became the first choice among the consumers.
Expanding dealer and distributor network promoting the e-vehicle and its advantages.
Consistent research and technological advancements in the automobile industry to provide advanced technologies to e-motorcycles
Two factors hampering the growth of the market are the comparatively higher initial cost for e-motorcycles and the lack of a developed charging infrastructure. PSR
Michael Aistrup is Senior Analystspecializing in Recreational Products at Power Systems Research
Electric bus maker PMI Electro announced the setting up of its largest EV manufacturing plant with annual production capacity of 2,500 vehicles at Chakan in Maharashtra.
PSR Analysis: PMI operates a manufacturing facility in Delhi, India’s capital region, which has an annual production capacity of about 1,500 electric buses. With the planned facility in Pune, the total annual manufacturing capacity of PMI will grow to 4,000 electric CVs, the company said. The new plant will be capable of manufacturing electric CVs in multiple variants as well as electric trucks.
The company said it has received an order size of 1,000 electric CVs (Commercial Vehicles) under FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme of the central government. PSR
Aditya Kondejkar is Research Analyst – South Asia Operations, for Power Systems Research
