Industry Segments | Power Systems Research

2025-09-13

Sharing of EV Battery Data Supported by METI

The Ministry of Economy, Trade and Industry says it will support the development of an industry-wide system for sharing information on the degradation status of EV batteries. Toyota and Honda will provide battery-related data to used car dealers, insurance companies and others. The aim is to prevent the export of used EVs overseas and enable the domestic utilization of batteries containing critical minerals.

Currently, battery degradation is difficult to assess, resulting in low trade-in prices for used EVs in the domestic market. The fact that approximately 80% were exported overseas was a cause for concern.

Categories: Alternative Power, Batteries, Japan, Legislation, Passenger Cars, Minivans, and SUVs, Production

Office: Japan Office

Proton Builds First EV Plant in Malaysia

Akihiro Komuro

Proton, Malaysia’s national car brand, opened its first EV factory in the state of Perak. The factory has an annual production capacity of 20,000 units, which can be expanded to 45,000.

Construction of the factory costs a total of 82 million ringgit (approximately $19.47M). Proton receives technical support from its major shareholder, Zhejiang Geely Holding Group of China. Previously, Proton imported EVs produced at Geely’s factory in Hangzhou, Zhejiang Province, China.

Categories: Alternative Power, Japan, Passenger Cars, Minivans, and SUVs, Production

Office: Japan Office

New GST Is Game Changer for Autos, Tractors

Aditya Kondejkar

The September 2025 GST Council meeting introduced sweeping tax revisions that significantly lower GST rates across multiple vehicle and farm equipment categories. Tractors and their components now attract a 5% rate (from 12% for standard tractors, and from 18% for parts), while small cars, two-wheelers (up to 350cc), three-wheelers, buses, and certain commercial vehicles are enjoying reduced GST from 28% to 18%.

These changes are expected to improve affordability, stimulate demand (especially in rural and semi-urban areas), boost manufacturing and ancillary industries, and lead to job growth across the value chain.

Source: The Times of India. Read The Link

Categories: Agricultural, Indian Subcontinent, Legislation, Passenger Cars, Minivans, and SUVs, Production, Sales

Office: India Office

2025-08-26

Dongfeng Plans To Sell 50% Stake in Honda Engine

Jack Hao

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

News: Industry Segments

TPI

OE Link™ Offers
Global Coverage

Sign-up for PowerTalk

PSR Global Offices & Affiliate Locations*O

Power Systems Research, Inc.

Power Systems Research, Inc.

Power Systems Research*

Power Systems Research SA

PSR Power Systems
Research India Pvt. Ltd.

Power Systems Research SA*

Power Systems Research

Power Systems Research

Tohan Research, Inc.*

PSR Global Offices & Affiliate Locations*

Power Systems Research, Inc.

Power Systems Research, Inc.

Power Systems Research*

Power Systems Research SA

PSR Power Systems
Research India Pvt. Ltd.

Power Systems Research SA*

Power Systems Research
(Beijing) Co., Ltd.

Power Systems Research

Tohan Research, Inc.*

Industries

Products

Solutions

Sign-up for PowerTalk

PSR Global Offices & Affiliate Locations*O

Power Systems Research, Inc.

Power Systems Research, Inc.

Power Systems Research*

Power Systems Research SA

PSR Power SystemsResearch India Pvt. Ltd.

Power Systems Research SA*

Power Systems Research

Power Systems Research

Tohan Research, Inc.*

PSR Global Offices & Affiliate Locations*

Power Systems Research, Inc.

Power Systems Research, Inc.

Power Systems Research*

Power Systems Research SA

PSR Power SystemsResearch India Pvt. Ltd.

Power Systems Research SA*

Power Systems Research(Beijing) Co., Ltd.

Power Systems Research

Tohan Research, Inc.*

Industries

Products

Solutions

PSR Power Systems
Research India Pvt. Ltd.

PSR Power Systems
Research India Pvt. Ltd.

Power Systems Research
(Beijing) Co., Ltd.