This Clean Technica article notes, “Arthur Bus’s collapse in Poland marks the end of a story that had been quietly unraveling for some time. A hydrogen bus startup backed by public funding, municipal orders, and a planned manufacturing footprint failed before delivering a single customer vehicle.
Tesla reportedly is positioned to receive roughly $165 million in California clean-truck incentives for its Semi.
As per the Times, the Tesla Semi’s funding will come from California’s Hybrid and Zero-Emission Truck and Bus Incentive Project (HVIP), which was designed to accelerate the adoption of cleaner medium- and heavy-duty vehicles. Since its launch in 2009, the HVIP has distributed more than $1.6 billion to support zero-emission trucks and buses across the state.
Toyota’s engine manufacturing plant in Porto Feliz (SP), Brazil, will not resume full production until 2028 after suffering severe structural damage caused by a storm in September 2025. The facility, responsible for producing flex-fuel ICE engines for models such as Corolla, Corolla Cross and Yaris, was heavily damaged, requiring complete reconstruction. Only the original foundation slab will be reused, with a new industrial building designed to incorporate higher levels of automation and a more compact manufacturing layout.
During the reconstruction period, Toyota implemented contingency measures, including the installation of a temporary structure in Porto Feliz to maintain partial engine production. Part of the workforce was reassigned to the Sorocaba plant, while other employees entered temporary layoff programs. The company plans to test a new productivity and manufacturing concept by the end of 2027, with full operational normalization scheduled for 2028.
The Federal National Education Development Fund (FNDE), part of Brazil’s Ministry of Education, has revoked the public tender for the purchase of approximately 7,500 school buses under the Programa Caminho da Escola scheduled for 2026. The cancellation was formally published in early February 2026 to align the procurement with a new law on tax exemptions, which altered fiscal conditions for vehicles eligible in the program.
Brazil’s truck market started 2026 in significant decline. A total of 6,379 units were registered in January, representing a drop of approximately 30% compared to January 2025 (9,131 units) and a 34% decrease versus December 2025 (9,765 units), according to data from Fenabrave (National Federation of Motor Vehicle Distribution).
Market leadership in the month was shared by Volkswagen Caminhões e Ônibus and Mercedes-Benz, each holding around 27% market share. They were followed by Volvo, Scania, Iveco, DAF and Foton.
Medium and heavy truck production in North America is expected to increase by 4.9% this year compared with 2025. While class 8 truck production is expected to increase by 6.1% this year, the industry continues to be negatively impacted by the weight of the tariffs, low freight demand, excess truck capacity and relatively high finance rates which is expected to continue through at least the first half of the year.
With regard to the implementation of the phase 3 GHG emission regulations, it will be later in the spring before the EPA finalizes any revisions to the standards. Many in the industry believe the EPA will retain the 0.035 g/hp-hr standard along with the 2027 implementation date but cancel the extended warranty requirements which would have added significant up-front cost to the trucks.
In January 2026, the Brazilian federal government launched the Move Brazil Program, a credit support initiative totaling approximately USD 2.0 billion. The program aims to support the domestic truck manufacturing industry and stimulate fleet renewal amid a sharp downturn in heavy-duty vehicle demand.
Financing will be provided through BNDES with annual interest rates between 13% and 14%, grace periods of up to six months, and repayment terms of up to five years, capped at approximately USD 10 million per beneficiary. Eligible beneficiaries include independent truck drivers, cooperatives, transport companies, and large fleet operators, with 10% of total funding reserved for independents and cooperatives.
Financing is restricted to new trucks manufactured in Brazil and compliant with Proconve P8 emission standards, as well as used trucks (model year 2012 onward) meeting Proconve P7 requirements and local content criteria. The program will be available for six months and is positioned as a short-term measure to mitigate layoffs and production cuts in the heavy truck segment.
Brazil’s vehicle distribution association Fenabrave projects that the total new vehicle market in 2026 will grow by approximately 3%, reaching around 2.7–2.8 million units in total sales across all segments compared with 2025 performance. This projection includes ~3% increases in passenger cars and light commercial vehicles, roughly 2.6–2.7 million units, and ~3.5% growth in truck registrations. Sales of buses are also forecast to rise ~3%.
The outlook is supported by expectations of improved credit availability, federal support programs such as Carro Sustentável and Move Brazil, and a strong commodities export environment, which bolsters freight demand. The heavy truck segment, which faced a steep decline in 2025, is expected to contribute to overall market expansion. Fenabrave’s forecast assumes modest macroeconomic improvement and continued easing of credit conditions.
In the December 2025 issue of the Alternative Power Report produced by Power Systems Research and authored by Guy Youngs, you’ll find articles on slowing EV Sales, hydrogen power, battery development, China’s shift from diesel powered trucks to electric, and Spain’s growing emphasis on hydrogen power. Read these articles and more in the December Alternative Power Report today. PSR
Guy Youngs is Forecast and Technology Adoption Lead at Power Systems Research
Eletra announced an investment of BRL 40 million (approximately US$ 7 million) to expand its factory in São Bernardo do Campo (SP) and build a new in-house chassis assembly line. The initiative will transform Eletra into a full-fledged chassis manufacturer, rather than relying solely on chassis supplied by partners.