Daimler India Adopts Aggressive Dealer Strategy

News: Industry Segments

2020-12-21

Daimler India Adopts Aggressive Dealer Strategy

Daimler India, which recently set up 10 new touchpoints, plans to have at least 350 dealerships across India in the next two years as it looks to deepen market penetration.

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In September, DICV announced plans to grow its BharatBenz dealer network by 10%, exceeding 250 outlets by the end of 2020. With the opening of these new touchpoints, the company moves a step closer to cutting the distance between dealerships from 160 km to 120 km. The company is expanding strategically. The touchpoints are located on leading national and state highways, improving DICV’s golden quadrilateral coverage.

Along with increasing domestic reach, the company is focusing on the export market. Post announcement of the production-linked incentive (PLI) scheme, the company plans to invest in the country. The new investment could be used to increase the localization levels of components to avail the PLI. Furthermore, India has moved to BS-VI norms (equivalent euro 6 norms), it will be relatively easier for the company to cater to domestic as well as an export market with the same engines (with few moderations).   PSR

Aditya Kondejkar is Research Analyst – South Asia Operations – for Power Systems Research

Japan Sees Hydrogen as Main Fuel by 2030

Akihiro Komuro
Akihiro Komuro

The government of Japan has set a target of 10 million tons of hydrogen to be used in Japan by 2030, enough to operate more than 30 nuclear power plants. This would be more than 10% of the total electricity capacity in Japan.

It will also hasten the practical application of hydrogen power generation and accelerate the spread of FCVs. The government will provide support through a newly established 2 trillion Yen fund and tax incentives for capital investment.

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Magni, Bobcat Reach New Heights

Emiliano Marzoli
Emiliano Marzoli

Magni TH, an Italian manufacturer of material handling equipment, has signed an agreement with Bobcat to supply a range of rotating telehandlers (RTH) between 18 and 39 meters. 

The new machines will be produced in Italy, by Magni TH, with the Bobcat branding and stage V engines.  In order to achieve demand Magni has already developed a new facility, allowing the company to produce 3500 rotating telehandlers per year, once at full capacity.  This agreement will allow Magni to grow significantly according to their president and founder, Riccardo Magni.

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Powersports Segment Growth Ignores COVID-19

Michael Aistrup
Michael Aistrup

While much of the North American economy slowed to a crawl after COVID-19 shutdowns in 2020, the powersports industry posted significant growth. Many people, weary of staying at home, found a cure for cabin fever while riding an off-road vehicle or experiencing socially distant spaces on trails. By all indications, the sales increase in powersports equipment has been one of the few bright spots in an otherwise grim COVID-19 economy.

According to Jeremy Jansen, senior vice president of Wells Fargo Commercial Banking’s distribution financing business, “What started out as a slight uptick has just taken off to record sales levels,” he said. “Dirt bikes, ATVs, side by sides, personal transport vehicles — everything in the book is retailing well above prior year.” After plummeting briefly in mid-March amid the initial shutdown, powersports sales skyrocketed in the ensuing months.

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DataPoint: U.S. Trenchers, 2020 Production Estimate, 5,768 Units

The 5,768 units is the estimate by Power Systems Research of the number of Trenchers to be produced in the U.S. in 2020.

This 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.

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2020-12-17

2020, A Year to Forget for MHV; 2021 Is Looking Better

Chris Fisher
Chris Fisher

SUMMARY: In this article we provide a global overview on a regional basis of the medium and heavy commercial vehicle market (GVWR > 6 MT’s) along with current trends and OEM happenings in North America.

NORTH AMERICA. MHCV production in North America is expected to decline by 35% in 2020 compared to 2019.  However, orders for class 8 trucks improved significantly in Q4 2020 as large fleets placed their orders for a 2021 build.  This appears to signal an improvement in demand for 2021 as the market aligns itself with the expected freight level moving forward.  The consumer segment was strong during the last half of the year and the industrial segment is now expected to improve, as well. 

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2020-12-01

PSR/JCB Power Systems Construction Outlook Webinar

On November 30th, Power Systems Research with JCB Power Systems presented a webinar providing the 2021 outlook for construction equipment production and engine emissions trends in North America, South America and Europe.

The presentation included the latest information on COVID-19 impacts on construction equipment production. JCB Power Systems provided details regarding emissions in developing engine technologies that are coming to market across the globe.

PSR-JCB Power Systems Construction Equipment OutlookDownload
PSR-JCB-Power-Systems-Construction-Equipment-OutlookDownload

Makita Engine Products To Be Discontinued in March 2022

Makita, a major power tool company, will discontinue the production of engine products such as engine mowers, engine chainsaws, and other engine products for garden equipment at the end of March 2022. The company will concentrate its resources on its mainstay rechargeable power tools and garden equipment, for which demand is expected to increase in the future. Annual sales of engine products account for less than 2% of the total.

Source: The Nikkei

PSR Analysis: I visited Makita’s booth at the Agri Week exhibition in October. Engine models were not on exhibit and had been removed from their catalog. HIKOKI had the same situation. I forecast that battery models will account for more than 95% of the total hand tool market in 2021.

This is a sign that battery models have evolved to a level comparable to engine models, even in the power-demanding products. The engine model has a better ability in terms of long hours of continuous operation, but this is not a reason to extend the life of the engine model. Long working hours can be done by simply replacing the batteries. The fact that these batteries can be shared across a wide range of products, from chainsaws to impact drivers, has prompted the company to seek user understanding by introducing sales methods that offer lower unit prices when multiple batteries are purchased at once.   PSR

Akihiro Komuro is a Research Analyst, Far East and Southeast Asia for Power Systems Research