First VW Truck Produced in Argentina

The first Volkswagen truck has just left the new exclusive area for the assembly of commercial vehicles of the Industrial Center of Córdoba, Argentina. The vehicle, a VW Delivery 11,180, will be used in the validation of the manufacturing process and for the training of employees. Then it will be part of the fleet that will run tests around the country. The agreement announced by Volkswagen Caminhões e Ônibus and Volkswagen Argentina in December 2022 provides for the manufacture of five models of the brand in that country from 2024.

The new assembly line in Córdoba occupies an area of 15,000 square meters to produce the VW Delivery 9,170 and 11,180 trucks, the VW Constellation 17,280 in chassis-cab and horsepower versions, as well as the Volksbus 15.190 OD bus chassis.

Source: Press Release   Read The Article

PSR Analysis. This production is an important milestone for VW’s plan to produce in scale in 2024 and forward. Forecasts of introduction and production/sales ramp ups are available in PSR’s OE Link/OE Link Sales databases. PSR

Fabio Ferraresi is Director Business Development-South America for Power Systems Research

Alternative Propulsion MHVs Down 55% YTD in Brazil

Unlike what happened with automobiles, in which new propulsion technologies registered an increase of almost 60% in the first half of 2023, heavy vehicles powered by electricity or gas dropped 55.5% in this period.

From the 604 units licensed in H1 2022, the volume fell to 269 from January to June this year. The survey was released by the National Association of Motor Vehicle Manufacturers (Anfavea).

Source: Automotive Business    Read The Article

PSR Analysis. Although OEMs say the drop is in line with the overall market reduction, the ICE market does not account for the significant decrease in sales. Sales from January to June 2023 are only 1% below 2022 in the same period. The small volumes and the size of orders can explain the oscillation with orders postponed from Q1 2023 and Q2 2023 with expectations for incentives and better credit in the second half of 2023.

Fabio Ferraresi is Director Business Development-South America for Power Systems Research

Scania Launches HV Truck with 900km Range

The X-gas line, presented by Scania in June 26, in Piracicaba (SP) will have versions with powers of 280, 340 and 410 horsepower, and has a range of 900 kilometers, 400 km more than Scania’s debut version in the gas segment.

The longer range was made possible by increasing the number of cylinders that store fuel in the chassis of the vehicles. There are 16 tanks, eight on each side, with a capacity ranging between 118 and 95 liters. In the gas truck previously launched by Scania, there were eight tanks in total.

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DATAPOINT: NA Mixers, 2023 Production

34,000 units is the estimate by Power Systems Research of the number of Mixers expected to be produced in the United States, Mexico and Canada in 2023.

Mixers are used by a variety of industries, especially for construction applications, and mix an assortment of materials. Power Systems Research tracks the North American production of two types of mixers: one used to produce asphalt and one for mixing mortar or concrete. Asphalt Mixers/Agitators are used to manufacture asphalt, macadam and other forms of coated road stone, often called “blacktop.”

A Cement/Mortar Mixer is a mechanical mixer that uses rotating paddles attached to a horizontal axle to blend the mix ingredients of mortar or concrete.

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.

Battery/Corded Electric Units: Production of electric units are expected to increase by 23% in 2023 over 2022, climbing 1,300 units to about 6,800 units this year powered by either battery or cords. In 2023, electric units (battery and corded) will be about 2% of total North American Mixer production. PSR

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

Ammonia-Powered Fuel Cell Developed for Deep Sea Shipping

ShipFC is the project financed by the Union European program Horizon 2020 and Hydrogen Europe aiming to prove that fuel cells powered by green ammonia can meet the strict IMO standards of zero-emission Deep Sea shipping.

Currently, a 100% zero-emission solution is not available in this segment. Batteries do not last longue enough with a size that can fit a ship onboard, and Hydrogen technology has some other challenging issues to resolve. Alternative fuel solutions are promising but still need to be tested, confirmed, and approved by DNA.

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Hyundai China Sales Drop 77% in Six Years

FAR EAST: SOUTH KOREA REPORT

South Korea’s Hyundai Motor has announced that it will sell two plants in China. Beijing Hyundai, a joint venture with China’s state-owned auto giant Beijing Automotive Group, will reduce the number of plants in operation to two. Sluggish sales in the Chinese market have prompted the company to make structural reforms.

Hyundai Motor’s sales in China were 260,000 units in 2022; in 2016 it sold 1.13 million units, a 77% decline in six years.

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Honda Forced To Reduce Car Features

FAR EAST: JAPAN REPORT
Akihiro Komuro
Akihiro Komuro

Honda will sell some of its new vehicles without a function that detects vehicles in the blind spot and warns the driver, saying the dedicated semiconductors required for this function have been in short supply.

To solve the situation where it takes about a year from order receipt to delivery, Honda will sell the new models with the function reduced so that they can be delivered in about six months.

Sales of the new SUV model “ZR-V” began with a specification that eliminates “Blind Spot Information (BSI),” which alerts the driver by detecting vehicles diagonally behind the vehicle and displaying them in the door mirror. Since the procurement of the necessary in-vehicle semiconductors was not completed in time and the delivery period was expected to be prolonged, the company decided to sell the car without this BSI function. Although it varies by store and model, the time from order to delivery can be reduced by half, from about one year to about six months.

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VI B Emissions Seen Boosting China’s Auto Industry

CHINA REPORT
Jack Hao
Jack Hao

The new national standard for automotive emissions, scheduled to be implemented July 1, 2023, could boost China’s auto industry, say industry insiders.

The Ministry of Ecology and Environment, the Ministry of Industry and Information Technology, and other departments recently issued a joint notice proposing that the National VI Emission Standards for automobiles (National VI B) be implemented nationwide July 1, 2023.

Industry insiders believe that the implementation of the new regulations will drive car companies to accelerate technological upgrading, thereby achieving green and low-carbon development of the automotive industry.

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OEMs Target India’s Premium MC Segment

INDIA REPORT
Aditya Kondejkar

The dominance of Royal Enfield in the mid-segment of the premium motorcycle market (300cc-500cc) could be facing challenges from upcoming products. The Triumph Speed 400, a result of a joint development effort between Triumph and Bajaj Auto, and the Harley-Davidson X440, developed through a collaboration between Hero MotoCorp and Harley Davidson, are set to compete in this market segment.

In response, Royal Enfield plans to introduce three new models in the 350-450cc range within the next year.

The Indian motorcycle market has witnessed a favorable trend towards high-end bikes. The phenomenon of premiumization has gained momentum due to increasing income levels, a growing young population, shifting preferences, and a surge in product launches.

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DATAPOINT: NA Off-Highway Trucks 2023 Production

1,600 units is the estimate by Power Systems Research of the number of Off-Highway Trucks expected to be produced in the United States and Canada in 2023. None of these trucks are electric units.

Unlike On-Road Trucks, Off-Highway Trucks are specifically designed to work in punishing environments and are made to haul material and debris around a work site. These purpose-built vehicles are not constrained by the weight limits of their smaller on-road counterparts.

Expect production to increase 5% by 2025 as the need for new equipment for mining operations increases.  It is speculated that there will be growth in the excavation of iron ore, nickel and bauxite followed by gold and copper.  PSR

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