Industry Segments | Power Systems Research

2025-08-26

Dongfeng Plans To Sell 50% Stake in Honda Engine

Dongfeng Motor Group reportedly plans to sell its 50% stake in Dongfeng Honda Engine Co., Ltd. Joint venture with Honda Motor Co., according to an Aug. 18post on the official website of Guangdong United Property and Equity Exchange. The project is in the pre-listing phase, with no reserve price set, and the deadline is Sept. 12.

According to the audited figures in the listing documents, Dongfeng Honda Engine was valued at RMB 5.4 billion (approximately USD 752 million) in 2024. The company posted a net loss of RMB 227.8 million for the same period, carries liabilities of RMB 3.3 billion.

According to the official website of Dongfeng Honda Engine Co., Ltd., the company was established in 1998. Its shareholders are Dongfeng Motor Corporation, Honda Motor Co., Ltd., and Honda Motor (China) Investment Co., Ltd., holding 50%, 40%, and 10% of the shares respectively.

Categories: Commercial Vehicles, Electrification, Financial, Greater China, Partnerships, Passenger Cars, Minivans, and SUVs

Office: China Office

GST Reform Is Big Opportunity for OEMs

Aditya Kondejkar

India is preparing for one of its biggest tax reforms in recent years, targeting the Goods and Services Tax (GST) structure. If approved, the proposal will slash GST on small cars and two-wheelers from 28% to 18% and reduce GST on insurance premiums to between 5% and zero. The change, expected around Diwali, has the potential to reshape production planning and sales strategies for automobile manufacturers.

Source: Reuters. Read The Article

Impact on Small Cars and Two-Wheelers. Small cars and two-wheelers have traditionally been the backbone of India’s automobile industry, serving middle-class buyers who are highly price sensitive. However, in recent years, growth in these categories has slowed as buyers shifted toward SUVs, which now account for nearly half of passenger vehicle sales. By lowering taxes, the government aims to make small cars and two-wheelers more affordable, correcting the imbalance in demand and giving OEMs in these categories a much-needed boost.

Categories: Commercial Vehicles, Indian Subcontinent, Legislation, Motorcycles, Recreational Products, Sales

Office: India Office

2025-08-16

Vietnam Shifts To EV Motorcycles

Akihiro Komuro

Vietnam, a country known for its large number of motorcycles, is experiencing controversy over its electric vehicle policy. The policy bans gasoline-powered motorcycles in certain areas of Hanoi, the capital, and has caused a stir. Honda, which holds an 80% share of the local motorcycle market, must rethink its strategy because most of its models run on gasoline. This sudden policy change could also disrupt daily life for residents.

In July, the Vietnamese government outlined bold measures to regulate gasoline-powered motorcycles in “Prime Ministerial Directive No. 20.” Starting in July 2026, operating gasoline-powered motorcycles within the Inner Ring Road in Hanoi will be banned. The Inner Ring Road spans over seven kilometers and includes the city center, home to government offices, the Japanese embassy, and the historic Old Quarter, a popular tourist destination.

Categories: Alternative Power, Electrification, Emissions, Legislation, Motorcycles, Vietnam

Office: Japan Office

CEMA Sees 3% Decline in FY2025 Shipments

Akihiro Komuro

CEMA (The Japan Construction Equipment Manufacturers Association) said it expects domestic shipments of construction equipment in fiscal 2025 to decline 3% YOY to US$ 19.65 billion (2.8488 trillion yen). This reflects declining capital investment sentiment due to rising interest rates and the impact of the Trump administration’s tariff policies.

Exports are also expected to decline by 3%, reaching US$ 13.60 billion (1.9717 trillion yen). Sales of hydraulic and mini excavators, the mainstay products, are expected to decline. Domestic sales are expected to decrease by 4%, down US$ 365.5million (52.9 billion yen) from the previous forecast, to US$ 6.05 billion USD (877.1 billion yen). Companies are expected to reduce their capital investment due to concerns about increased borrowing costs associated with rising interest rates.

Categories: Construction, Japan, Production

Office: Japan Office

Hitachi Construction Plans Regional HQ in Chile

Fabio Ferraresi

Hitachi Construction Machinery Co., Ltd. plans to establish a regional headquarters in Chile to oversee and expand its operations in Latin America. The move shifts the focus from solely selling new machinery to localizing parts supply and service support, enabling faster responses to dealers and customers.

Following the end of its joint venture with Deere & Company in 2022, the company has been independently growing in the Americas, initially prioritizing North America. The decision for a Chile-based HQ reflects cultural and operational differences from North America, as well as Chile’s importance in the mining dump truck market.

Source: Hitachi Press Release Read The Article

Categories: Central/South America, Commercial Vehicles, Production, South America/Brazil

Office: Brazil Office

Goiânia at Forefront of BEV Bus Transportation

Fabio Ferraresi

Goiânia (GO) will become the first city in the world to operate a regular fleet of 100%-electric bi-articulated buses, as a result of a partnership between Volvo and GreenMob Capital. The fleet includes 21 Volvo BZRT buses—16 articulated (with a capacity of approximately 180 passengers) and 5 bi-articulated (with a capacity of about 250 passengers). These zero-emission, ultra-quiet vehicles are slated to serve the BRT Leste‑Oeste corridor within the RMTC system, with initial operations scheduled to begin by late August 2025.

Categories: Alternative Power, Commercial Vehicles, Electrification, Fuel Cells, South America/Brazil

Office: Brazil Office

GWM Tests Hydrogen Truck in Brazil

Fabio Ferraresi

GWM has brought its Hydrogen powered by FTXT truck prototype to Brazil for tests at its Iracemápolis (SP) plant, coinciding with the factory’s inauguration Aug. 15, 2025. The vehicle combines a 105 kWh battery with 40 kg of hydrogen in onboard tanks feeding a fuel cell, producing only water vapor. Tests will begin in September, assessing safety, performance, consumption, and adaptation to Brazilian roads, first unloaded and later with simulated cargo.

Categories: Alternative Power, Commercial Vehicles, Fuel Cells, Hydrogen, Production, South America/Brazil

Office: Brazil Office

EPA Plans To Drop Phase 3 Emission Regulations

Chris Fisher

In July, the Trump administration proposed a draft rule rolling back the Greenhouse Gas Phase 3 rule, among the last of – if not the biggest – looming Biden-era emissions regulations facing the trucking industry.

The proposal was announced jointly with Environmental Protection Agency Administrator (EPA) Lee Zeldin’s call to revoke the Endangerment Finding that has allowed presidential administrations to regulate greenhouse gases since 2009.

The repeal of greenhouse gas regulations is a long road that includes a lengthy rulemaking process and likely numerous legal challenges.

Categories: Commercial Vehicles, Emissions, Legislation, North America

Office: United States Offices

Tesla Sales in Europe Are in Free-fall

Guy Youngs

Tesla sales in Europe are continuing to decline rapidly, and it appears the pain is just beginning for the automaker. The numbers for July are coming in from Europe and Tesla registrations are down 41.6% despite EV sales surging across the continent.

The data shows that the free-fall decline in sales that we saw in the first half of 2025 is continuing into the second half, despite Tesla falsely claiming that the issue in the first quarter was the Model Y changeover limiting supply.

Categories: Alternative Power, AltPwr, Passenger Cars, Minivans, and SUVs, Sales

Office: United States Offices

Fortescue Cancels Flagship Hydrogen Projects

Guy Youngs

Fortescue’s recent decision to abandon two major hydrogen-for-energy projects after reaching a Final Investment Decision (FID) serves as an important signal for policymakers around the world, particularly in the UK, which is still pretending its autumn hydrogen strategy update will be evidence led.

These cancellations, one located in Gladstone, Australia, and another in Arizona, represent more than just isolated setbacks. Hydrogen as an energy source, as opposed to its use as an industrial feedstock, is increasingly failing under scrutiny across the globe

US energy policy under the Trump administration, particularly the removal of certain hydrogen-related subsidies, has led to uncertainty which has in turn quickly revealed the true economics of hydrogen production. With the incentives removed, the project’s already tenuous financial viability vanished, prompting Fortescue to write off approximately $150 million in pre-tax losses.

Categories: Alternative Power, AltPwr, Hydrogen, Passenger Cars, Minivans, and SUVs, Production

Office: United States Offices

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