News: Agricultural

2024-05-25

Heavy Rains Batter Brazilian OEM Operations

BRAZIL/SOUTH AMERICA REPORT 

Recent heavy rainfall in Rio Grande do Sul has led to production disruptions in many automotive OEM operations located in the region, including GM, AGCO, Marcopolo, John Deere, Randon, and auto parts manufacturers like Fras-le. Despite this, automakers and auto parts companies are gaining control over production operations. However, logistical challenges persist, raising concerns.

Both Anfavea, representing automakers, and Sindipeças, representing the components sector, express worry about the production flow from these companies in Rio Grande do Sul, which serve domestic and international demands, presenting an unpredictable aspect currently.

The initial expectation for vehicle production was to remain steady despite the rains, as Gravataí and the Serra Gaúcha region, where most automakers operate, remain largely unaffected. However, parts production in Porto Alegre faced important disruptions due to many manufacturers being located in flood-affected areas in the region and the transportation from production areas to OEMs was severely affected. Some OEMs—such as GM, Stellantis and Volkswagen–already announced temporary plant shutdowns.

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Kubota Plans India as Global Production Hub

INDIA REPORT
Aditya Kondejkar

In a strategic move reminiscent of Suzuki Motor’s successful expansion strategy, Japanese agricultural equipment giant Kubota is carving out a path to global dominance by establishing India as its production nucleus. The recent acquisition of Escorts, a leading tractor manufacturer in India, marked a pivotal moment for Kubota, propelling it into a position of strength in the Indian and international markets.

Kubota’s journey in India began in 2008, albeit with sluggish growth and single-digit market share due to its specialization in lightweight tractors, which initially lacked the requisite power for Indian applications. However, with the acquisition of Escorts in 2022 and subsequent rebranding as Escorts Kubota, the company gained a significant foothold, complementing its expertise with Escorts’ established presence in the Indian market.

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2024-05-24

2024 NA Skid Steer Production        

96,000 units is the estimate by Power Systems Research of the number of Skid Steer Loaders expected to be produced in North America (US and Canada) in 2024.

NA Skid Steer Loaders – May 2024Download

A Skid Steer Loader also known as a Skid Loader, Skid-Steer Loader, or Skidsteer, is a small rigid frame, engine-powered machine with lift arms used to attach a wide variety of labor-saving tools or attachments.

Four major uses for Skid Steer Loaders are: Agricultural, 29%; Rental Fleets, 22%; Construction, 20%, and Landscape, 12%.

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. PSR

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

2024-04-17

Kubota Unveils First Fuel Cell Tractor

JAPAN REPORT
Akihiro Komuro
Akihiro Komuro

On March 28, Kubota unveiled the first prototype of a fuel cell-powered tractor. Although no release date has been set, the company will consider installing fuel cells in unmanned, automated tractors. Kubota is also developing battery-powered agricultural equipment, but the company believes that hydrogen-powered fuel cells will be effective for medium-large sized agricultural equipment.

Kubota is rushing to commercialize fuel cells because it believes demand will grow in developed countries such as Japan, Europe and the United States as a result of the trend toward decarbonization. The prototype machine has about 60 horsepower and has three hydrogen tanks installed above the cabin, which are used in Toyota’s Mirai fuel cell car. It generates electricity by reacting hydrogen with oxygen to power the engine. In the experiment, a tractor was equipped with a plowing unit to till the soil.

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2024-03-17

Kubota Plans To Produce Batteries for EV AG Equipment

JAPAN REPORT

Kubota is considering in-house production of batteries for electric agricultural equipment. It is considering developing and designing its own batteries and building a new plant in Japan.

The company intends to launch electric tractors and mowers in Europe and the United States by 2030. Kubota is preparing for increased demand in Europe, the U.S., and other markets by establishing a system for in-house production of batteries, which determine the running time of electric agricultural machinery.

Kubota currently manufactures diesel engines for agricultural machinery, mainly in Thailand and Japan and ships them to the United States and Europe for final assembly. Regarding batteries, which are a key component of electric agricultural machinery, President Kitao said, “As with engines, we would like to be able to produce batteries for Asian markets in Thailand, and those for Japan, Europe, and the United States in Japan.”

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AG and CE Segments Poised for Substantial Growth in Brazil

The agricultural and construction equipment sectors in Brazil are poised for significant growth in coming years, according to data compiled by Anfavea (National Association of Automotive Vehicle Manufacturers) in conjunction with the IBGE (Brazilian Institute of Geography and Statistics).

A comprehensive survey identified 5.1 million agricultural establishments nationwide, of which 14.5% possessed tractors and 2.4% had harvesters, indicating substantial potential for expansion provided farmers have access to both public and private financing avenues for equipment acquisition.

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Mahindra Plans To Double Tractor Exports

INDIA REPORT
Aditya Kondejkar

“Our aim is that with the launch of Oja (platform), we will double our export in the next three years,” says Hemant Sikka, president of Mahindra’s farm equipment sector. “So, we want to increase exports from 18,000 to 36,000 in about three years.”

In collaboration with Mitsubishi Mahindra Agriculture Machinery, Japan, and an investment of INR 1200 crore, the new Oja platform could help Mahindra win 25% of the worldwide tractor demand. This includes tapping into new markets such as Europe and ASEAN, as well as strengthening its presence in sectors like horticulture.

Source: Economic Times    Read The Article

PSR Analysis: The launch of Mahindra Tractors’ new Oja platform underscores a strategic move with several critical business implications. First, the entry into the 80,000 unit ASEAN market represents an expansion initiative, targeting countries such as Thailand, Indonesia, and the Philippines. This move aligns with the company’s global growth strategy, capitalizing on the increasing demand for tractors in these emerging markets.

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2023-12-04

2024 Combine Production: 7,100 Units

7100 units is the estimate by Power Systems Research of the number of Combines to be produced in North America (United States) in 2023. Final 2023 production numbers will be available later in Q1 2024.

North America Combines – Dec 2023Download

A combine is a farm machine that harvests grain crops. Combines can reap, thresh and winnow crops into a single process. Crops include wheat, oats, rye, barley, corn, etc. Combines overall boost crop output and farm income. 

Trends: In 2022, production of Combines in North America increased nearly 12.5%, climbing from 6,372 units in 2021 to 7,162 units in 2022. Production is expected to remain flat in 2023 with a nominal decrease of less than 1%.  The Combine market steadily rose this past year and farmers are upgrading to new machines. PSR

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