Industry Segments | Power Systems Research

2025-09-13

Truck Demand Expected To Remain Soft into 2026

How things have changed. Less than a year ago the industry was gearing up for a huge 2026 class 8 truck pre-buy ahead of the phase 3 GHG emission regulations that would add significant cost to the price of a truck. Road freight was expected to rebound after the post covid freight recession, and the heavy truck replacement cycle was expected to begin. OEMs filled dealer lots in anticipation of strong demand starting in early to mid-2025 and lasting through all of 2026.

As a result of very strong freight shipments and supply chain disruptions during the Covid era, fleets were purchasing as many trucks as possible which resulted in very high truck sales from 2022 – 2024. This resulted in truck overcapacity within the market.

Categories: Commercial Vehicles, Legislation, North America, Production

Office: United States Offices

Brazil Vehicle Exports Hit Highest Level in Seven Years

Fabio Ferraresi

By the month of August 2025, Brazil’s automotive exports reached 57,100 vehicles, marking the highest monthly level since June 2018. This figure represents a 19.3% increase over July and a 49.3% increase compared to August 2024. Argentina played a pivotal role, accounting for 59% of the country’s annual exports.

From January to August, total exports summed 313,300 units, up 12.1% compared to the same period in 2024. Production stood at 247,000 vehicles in August, nearly flat from July (+3%) but down 4.8% year-on-year. Overall production in the year reached 1.743 million units, an increase of 6% over 2024. Domestic market performance remained largely stable, with 225,400 vehicle registrations in August, though the average daily sales were slightly below 2024 levels at 10.7 thousand per day, raising caution for the final quarter

Source: Automotive Business

Categories: Central/South America, Passenger Cars, Minivans, and SUVs, Production, South America/Brazil

Office: Brazil Office

August Brazil Truck Production Below 2024

Fabio Ferraresi

Brazilian truck production declined in August 2025, with factories manufacturing 10,096 units, down 16.3% from July (12,058 units) and down 22.9% compared to August 2024 (13,101 units). Over the first eight months of 2025, accumulated production was 88,525 trucks, slightly lower by 1% compared to the same period in 2024 (89,401 vehicles).

Domestic truck sales also fell sharply: 8,900 trucks were licensed in August, 15.9% fewer than July, and 22.6% fewer than August 2024. High interest rates are being cited as a main cause, especially affecting heavy trucks, which account for nearly half the truck market and saw a production drop exceeding 19%.

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

Office: Brazil Office

São Paulo Adopts Biomethane in Bus Fleet

Fabio Ferraresi

On Sept. 2, 2025, the biggest city in Americas with biggest bus fleet, started on the path to use of biomethane as fuel in the city’s public transport fleet and garbage collection vehicles. The initiative sets rules for fuel acquisition and introduces the gradual adoption of biomethane-powered vehicles. City officials emphasize that biomethane offers lower operating and acquisition costs compared to electric buses and avoids the need for large-scale charging infrastructure.

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

Office: Brazil Office

Sharing of EV Battery Data Supported by METI

Akihiro Komuro

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

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