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Small Signs of Recovery in Japan’s Domestic Motorcycle Market
Akihiro Komuro While car sales have been hit hard by the Coronavirus disaster, there are small signs of a recovery in the Japanese domestic motorcycle market. According to the Japan Mini Vehicle Association, new motorcycle sales in April 2020 (125 to 250cc) were up 2.0% YOY to 7,772 units.
This is the fourth consecutive month of YOY growth. Some observers believe this is a rebound from the decline following the October 2019 sales tax hike. This growth also is partly due to the growing need by commuters to use motorcycles as an alternative to public transportation to avoid coronavirus.
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COVID-19 2020 North American Impact: Ag, -12%, Construction, -14%
HDMA-PSR COVID Webinar Presentation
COVID-19 continues to batter production of off-highway equipment as we continue to move through 2020. The effects of the virus on Agricultural and Construction equipment production in North America were analyzed in a June 17 webinar presented by the Heavy Duty Manufacturers Association (HDMA) and Power Systems Research (PSR). The webinar updated information presented in PSR’s webinar in April.
Jim Downey The PSR webinar team was Jim Downey, PSR vice president-global data products , and Yosyf Sherementa, PhD, PSR director-product management and customer experience.
PSR projects AG to be down 9.4% and CN to be down 11.3% when comparing global production for this year (2020) to last year (2019).
China and India which have the largest volumes for ag machinery are the lower side for production percentage drops this year. China which is also the largest producer of construction equipment is not expecting a decline this year.
Yosyf Sheremeta A slight recovery for Construction equipment is expected in 2021, but not until 2022 for Agricultural machinery. Ag sector recovery will ultimately depend on overall economic recovery from the COVID-19 pandemic.
The construction segment will not return to pre-virus production volumes for another few years, at best. We’re looking out to 2024 or possibly 2025 to get back to 1.48 million units.
We don’t see a V-shaped type scenario on the horizon in North America, but rather recovery will look like something between a “U” and an “L.” Somewhat of a swoosh shape or upward sloping L. Economic activity will slowly return to a sense of normalcy as the curve of new COVID-19 cases flattens.
Government support and intervention will be needed, and stimulus will provide an economic backstop. We expect modest growth in 2021. Pent-up demand and continued economic stimulus should also help with rebound.
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Thoughts on Battery Change for New Energy Vehicle, using Big Data
Qin Fen The symposium of battery change mode for new energy vehicle was held June 15 in Xuzhou, Jiangsu. Data from National Big Data Alliance of New Energy Vehicles suggests that over 3 million new energy vehicles were in the system in 2019 and 900,000 vehicles are running daily. Data also suggest that new energy vehicle GVW range primarily falls under 4.5 tons.
Source: Sohu Read The Article
PSR Analysis: Many numbers are in the article, some contradictory. As one of the truck…
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Geely Poised to Acquire CAMC
According to a statement from CAMC, a.k.a Hualing Xingma, China automotive manufacturer Geely, will acquire a 15.4% position in the company.
Qin Fen Source: CV World Read The Article
PSR Analysis: A win-win situation for CAMC and Geely. There are still some legal proceedings to finish, but once it’s done, CAMC will save itself from financial trouble and Geely will add an asset to its commercial vehicle lineup. PSR
Qin Fen Is Business Development Manager for Power Systems Rese…
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Pepsico Acquires 18 Scania Trucks Fueled by NG / Biomethane in Brazil
After the first sale of NG trucks at Fenatran in October 2019, Scania has sold 22 more, including 18 to Pepsico. The forecast of 100 NG Trucks to be sold this year has been reduced because of the pandemic effect.
Source: Estadao Read The Article
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John Deere Starts Grader Production in Brazil
Fabio Ferraresi John Deere announced the start of production of G series of Graders in Brazil in the coming months. It had previously imported these units. With the movement, John Deere will attend the South American Market with 90% of products made in Brazil.
Source: AutoData Read The Article
PSR Analysis: The decision of nationalization started in 2018 and makes more sense with recent local currency depreciation. With this movement, Deere will be more competitive in delivery…
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COVID19 Special Report – Brazil Market Update
Power Systems Research published in the June 13 issue of Automotive Business magazine a high level update on perspectives of MHV and Off-Highway segments. See the article at the link below and translated presentation.
Carlos Briganti Source: PSR at Automotive Business Read The Article
PSR Analysis: Although ANFAVEA published a decreased forecast, we believe that the decrease will be lower than the Light Vehicles decrease. Metrics we follow, such as Diesel consumption and…
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DATAPOINT: US Lawn & Garden Tractors, 2020 Forecast: 681,500 Units
681,500 units is the estimate by Power Systems Research of the number of Lawn & Garden Tractors to be produced in the United States 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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The EV Story in Post-COVID Era
Roughly three months of countrywide lockdown, combined with zero sales and the post-pandemic uncertainty, has resulted in further degrading the health of the already struggling Indian automotive sector.
Aditya Kondejkar Though it has disrupted the entire value chain of the automobile industry, there is a silver lining to this Covid-19 pandemic: It has stimulated growth in renewable and eco-friendly transportation.
The Indian market has high potential for EVs since most commuters opt for two-wheelers, three-wheelers, and buses. There are numerous latent growth factors in place, and the pandemic might have set them in motion
While the pandemic has disrupted the transportation ecosystem, EV technology has the potential for rapid adoption, driven by an increased awareness towards a greener and cleaner transportation.
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SOUTHEAST ASIA REPORT: Southeast Asia Auto Sales Drop 80% in April
The Southeast Asian auto industry continues to suffer from the effects of the new coronavirus. New car sales in April were down 80% year-on-year due to restrictions on activity in each country. New car sales in the six major countries were down 82% in April from a year earlier to 51,063 units.
Akihito Komuro The biggest declines were in Malaysia and the Philippines, where sales were down 99.7% and 99.5%. Both countries began restricting activity in March, with production and sales of cars almost completely halted in April. Indonesia, the largest market, was down 91%. Thailand sales slumped 65%, although car dealerships operated under a declared state of emergency.
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