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IHI Tests 6 MW Ammonia-Fueled Land-Based Engine
Akihiro Komuro IHI Power Systems in July began operating a demonstration plant using a 6,000kW ammonia-fueled reciprocating engine at its Ota Plant in Gunma Prefecture. The engine uses ammonia and heavy fuel oil in a dual-fuel configuration and can also operate entirely on heavy fuel oil. The company is targeting both an ammonia fuel ratio and a greenhouse gas emissions reduction of more than 90%.
The demonstration will evaluate the complete power generation system, including engine performance, fuel supply equipment, exhaust aftertreatment, leak detection and safety controls. Fuel handling and exhaust treatment are particularly important because ammonia is toxic and can produce unburned ammonia and nitrous oxide under certain combustion conditions. IHI Power Systems plans to complete the testing during fiscal 2026 and begin commercial sales in fiscal 2027.
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Investment for AutoAlliance MHEVs Approved
Akihiro Komuro Thailand’s Board of Investment in July approved a THB 7 billion, approximately USD 210 million, investment by AutoAlliance Thailand (AAT). The joint venture between Mazda Motor and Ford Motor will upgrade its existing production facilities, mainly for Mazda vehicles, in preparation for a B-segment SUV using mild hybrid electric vehicle technology.
The investment will introduce additional automation and robotic equipment in chassis welding, body assembly, painting and final assembly. The upgrades are intended to improve production efficiency and accuracy while allowing the plant to handle the additional components and manufacturing requirements of the new MHEV model.
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XCMG Group, ZF Set Joint Venture for Ag Machinery
Jack Hao XCMG Group of Friedrichshafen, Germany, and ZF Group have signed a joint venture agreement to establish “ZF (Xuzhou) Machinery Co., Ltd.”, headquartered in Xuzhou Economic and Technological Development Zone, Jiangsu Province.
In 2024, ZF expressed its plan to localize the production of power shift transmissions in China. With this joint venture, we see a collaboration that may be a technology transfer or a long term strategy to localize China’s high-end agricultural equipment.
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India–UK CETA: A Strategic Opportunity for Autos
Aditya Kondejkar The implementation of the India–UK Comprehensive Economic and Trade Agreement (CETA) from July 15 marks a significant milestone for the Indian automotive industry. While much of the attention has focused on tariff reductions for premium vehicle imports, the agreement’s strategic importance extends well beyond lower duties. It has the potential to reshape trade flows, strengthen technology partnerships, attract investments, and enhance India’s position in the global automotive value chain.
For Indian OEMs and auto component manufacturers, the agreement creates new export opportunities by improving access to the UK market and enhancing cost competitiveness. India’s component industry, already a key supplier to global OEMs, stands to benefit from increased demand for precision-engineered products, castings, forgings, and EV-related components. The agreement also provides a stronger foundation for collaboration in advanced automotive technologies, including electric mobility, battery systems, lightweight materials, software-defined vehicles, and digital manufacturing.
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North America 2026 Hydroseeders Production
Sign-up for DataPoint Reports4,000 units is the estimate by Power Systems Research of the number Seeders/Hydroseeders expected to be produced in the United States during 2026.
Hydroseeding sprays a slurry of seed, water, fertilizer, and mulch to rapidly establish grass. Demand is driven by its massive cost savings (up to 80% cheaper than sod), rapid germination, and superior erosion control. It is the premier method for large-scale landscaping, land restoration, and climate-resilience projects.
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.
Exports: Up to 10% worldwide.
Trends. In 2025, production of Seeders/Hydroseeders in the United States decreased 4.4%. Production is expected to gain 3% in 2026. The gain is attributed to healthy lawn needs that include parks, residential, commercial/professional landscaping and sport fields. Expect production to increase by 10% by 2035. PSR
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Q2 2026 Truck Production Index Climbs 11.3%
Sign-up for TPI ReportsSt. Paul, MN — The Power Systems Research Truck Production Index (PSR-TPI) increased from 115 to 128, or 11.3%, for the three-month period ending June 30, 2026, from Q1 2026. The year-over-year (Q2 2025 to Q2 2026) gain for the PSR-TPI was, 127 to 128, or 0.8%.
Jim Downey The PSR-TPI measures truck production globally and across six regions: North America, China, Europe, South America, Japan & Korea and Emerging Markets.
This data comes from OE Link™, the proprietary database maintained by Power Systems Research.
All Regions. MHCV demand will vary by region in 2026. North America and Europe have seen orders increase through much of the first half of the year and vehicle demand is expected to improve somewhat over last year. China is expected to see a single digit decline in production much of the decline comes on the heels of very high levels of production in 2025.
Global Index. Overall, global production is expected to decline slightly in 2026 over last year. Ongoing tariffs along with the conflict in the Middle East and the shipping disruption in the Strait of Hormuz are currently putting pressure on truck demand. However, at the time of this writing fuel prices have been declining as more vessels are able to pass through the Strait.
Chris Fisher North America. Medium and heavy truck production in North America is expected to increase by 9.5% this year compared with low 2025 production. While class 8 truck production is expected to increase by 13.5% this year as order rates for class 8 trucks have improved strongly throughout much of the year. Improvement in freight rates and freight demand along with tightening truck capacity and some level of truck pre-buy ahead of the 2027 GHG emission regulations is expected to drive increased truck production this year. While truck sales have been down for much of this year, production levels are expected to be strong in the second half of the year. Oil prices have been recently declining which will also help drive truck demand in the third and fourth quarters of 2026.
The next update of the Power Systems Research TPI will be in October 2026 and will reflect changes in the TPI during Q3 2026. PSR
Jim Downey is Vice President-Global Data Products at Power Systems Research
Chris Fisher is the Senior Commercial Vehicle Analyst at Power Systems Research -
PowerTALK™, June 2026
Download PDFIn the June 2026 issue of PowerTALK News you can read articles about Toyota pulling the plug on its Lexus EV, PV equipped vehicles that may produce as much as 80% of needed electricity, endangered European EV investments, 2026 North American ATV production, Chinese CFMoto launching motorcycle production in South America, China stepping up EV production in the heavy-duty truck market, and more.
IN THIS ISSUE
ALTERNATIVE POWER REPORT
- EV Investment May Be at Risk in Europe
- Electrifying Your Fleet Isn’t Just About Going Green
- Toyota Pulls Plug on Lexus EV
- New Battery Could Last 16 Years Without Capacity Loss
- PV Equipped Vehicles May Cover 80% of Electricity Needs
TRUCK PRODUCTION REPORT: Strict EV Mandates Could Implode Economy
DATAPOINT REPORT: 2026 North American ATV Production
EUROPE REPORT:- German Market Continues To Struggle
- Exmar Pushes Ammonia-Fueled Maritime Engines
- Beneteau Posts Strong Q1 2026 Results
SOUTH AMERICA/BRAZIL REPORT:
- AGCO Presents Advances in Alternative Fuels Engines
- Randon Exports Semitrailers to Indonesia
- Chinese DFMoto Starts SA Operations with Motorcycles
- Public Funding Program Fails To Halt Brazil Truck Market Decline
JAPAN REPORT: Hitachi Moves Toward Remote Construction Deployment
SOUTH KOREA REPORT: Construction Equipment Exports Move into Strategic Markets
THAILAND REPORT: EV Policy Moves from Adoption To Industrial Absorption
CHINA REPORT: Plan Sets New Energy Goal of 40% Market Share for Heavy Duty Trucks
INDIA REPORT: Biofuels Lead Next Phase of Auto Fuel Transition
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