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CNG Vehicles Are Moving in Cruise Mode
INDIA REPORT
Aditya Kondejkar Sales of CNG (Compressed Natural Gas) vehicles in India are set to scale a new peak, driven by robust double-digit expansion in 2023 demand, with lower total ownership costs decidedly tilting the scales in favor of gas-powered cars instead of those running on liquid automotive fuels.
“We are seeing excellent traction for CNG vehicles,” says Tarun Garg, Director – Sales, Services and Marketing, Hyundai Motor India. “CNG provides a very good option to customers in terms of reduced total cost of ownership. Not only is the price of CNG fuel less than petrol/diesel, the fuel efficiency, too, is relatively better and emissions are lower.”
Currently, the country has more than 4,500 operational CNG stations, compared with fewer than 1,000 in 2014. To push adoption of CNG vehicles in the personal mobility space, in 2019, the petroleum and natural gas ministry announced plans to set up more than 10,000 CNG stations over the decade. It is anticipated that the country will save approximately Rs 2 lakh crore in oil imports if personal car users switched to CNG vehicles. Read The Article
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VinFast Ends Sales of Two Gasoline Vehicles
VIETNAM REPORT
Akihiro Komuro VinFast, an automotive subsidiary of Vingroup, the largest conglomerate in Vietnam, announced that it ended orders for two types of gasoline-powered vehicles in early July. The models covered are SUVs and sedans, and the company now will only sell the Fadil, a compact gasoline-powered vehicle. The company has announced its plan to withdraw from the production of gasoline-powered vehicles by the end of this year and is hastening its shift to EV production.
VinFast states that the reason for the suspension of orders for the two models is that “procurement of parts has become difficult and the number of units delivered to customers was not as large as expected.” The company did not mention the timing of the suspension of orders for Fadil. The company began selling EVs in Vietnam in December 2021.
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Hyundai Launches Flagship EV, the IONIQ6
SOUTH KOREA REPORT
Akihiro Komuro Hyundai Motor Company unveiled in July its flagship EV model, the IONIQ 6, that has a driving range of 6.2 kilometers per kilowatt-hour, a 20% increase over the current 5 model. The cruising range was also increased by 22% to 524 kilometers or 326 miles, (based on Korean government certification standards). Hyundai Motor claims that its EVs have the world’s highest level of electricity consumption efficiency.
The company called the IONIQ 6 “a ‘mobile personal studio,’ a space where you can rest and relax on your own. It offers a new experience that is different from existing EVs.”
In Korea, pre-orders will begin in late July, with shipments starting in September. Pricing will start at 55 million won (approximately 5.8 million yen), and sales are expected to reach 12,000 units by the end of the year. It will be released in Europe by the end of the year and in the US in the first half of 2023. Sales in Japan have not yet been decided. The newly announced “6” has a lighter body, and the cruising range has been extended by improving the energy-saving performance of the drive components and semiconductors.
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Venture Firm Raises 4.2 Billion Yen for Electrification Projects
FAR EAST: JAPAN REPORT
Akihiro Komuro PowerX, Inc. says it has raised 4.15 billion yen in funding for two electrification projects: one is to develop its own “Power ARK,” a ship that carries electricity, and the other is to build a large-scale storage battery factory in Japan.
The idea behind the Power Transfer Vessel is to store electricity in container-shaped storage batteries and transmit it by ship, with an eye toward the expansion of offshore wind farms. Conventionally, power is transmitted from offshore wind farms to land via submarine cables, but the aim is to develop the Power Transfer Vessel that can replace submarine cables. This will make it easier to construct power plants offshore in windy distant seas. The construction of submarine cables that pass high-voltage electricity is environmentally hazardous, but the Power Transfer Vessels are cheaper than cables and will enable power transmission to be realized sooner.
Power Ark 100. The first vessel, the “Power ARK 100,” will have a length of approximately 100 meters and will be equipped with 100 storage batteries in the form of shipping containers, enabling it to store 220 MWh of electricity. This is roughly equivalent to one day’s worth of electricity for one city (22,000 households). In the event of a large-scale power outage or other disaster, the ship will serve as a contingency power source. Larger vessels are also planned, and a 220-meter-long vessel capable of carrying 3,000 containers would be able to transport 5,660 MWh of electricity.
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Heavy Truck Sales Fall by More Than 60% in H1 2022
CHINA REPORT
Jack Hao The heavy truck industry fell in the first half of 2022 by more than 63% from the previous year. According to the latest statistics from the China Automobile Association, for January to June this year, the overall sales volume of the domestic heavy truck market was about 380,000 units, a decrease of 63.6% compared with the same period last year.
In June, the sales volume of China’s heavy truck industry was only 55,000 units, a year-over-year decrease of 65%. The main reasons for the decline in heavy truck sales this year are the upgrading of emission standard from “China V” to “China VI” last year, which caused a pre-buy in the market, and the impact of the epidemic this year, which depressed the logistics and transportation market, further curbing demand for new trucks.
The heavy truck industry is a cyclical industry, and its development cycle fluctuates due to changes in environmental protection policies and the overall economy. Following a 14 month decline in sales, the primary concern in the heavy truck industry is this: When will there be a turnaround?
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Brazil Government Announces US$ 65 Billion Agriculture Funding Plan
The Brazil government announced June 29 the new Safra Plan for 2022/2023 with a total of R$ 340 Billion (US$ 65 Bi) to fund business related to Agriculture, including Agricultural Machines and Trucks for product transportation. The amount is 36% higher than the previous year plan.
Source: Automotive Business Read The Article
PSR Analysis: While the volume of funds is higher, the interest rates are also higher. In addition, the prices of agricultural supplies are higher…
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Mercedes Makes Fourth Production Shutdown in Brazil
BRAZIL/SOUTH AMERICA REPORT
Despite high demand, Mercedes announced its fourth temporary production stop at the plant in São Bernardo do Campo-SP, from July 4-15. In the announcement, Mercedes mentions the shortage of components and its effort to work with the supply chain to meet commitments with customers.
Source: Automotive Business Read The Article
PSR Analysis. The shortage of components, particularly semiconductors, is taking longer than expected and is affecting…
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DATAPOINT: North America/Global Personal Watercraft. 2022 Production: 90,350 Units
90,350 units is the estimate by Power Systems Research of the number of Personal Watercraft to be produced in North America during 2022. A PWC is a small pleasure craft that uses an inboard jet drive as its primary source of propulsion and is designed to be operated by a person or persons sitting, standing, or kneeling on the PWC rather than inside the pleasure craft. PWC Sit-Downs 3 People is defined as a type of vessel which is specifically designed to haul multiple passengers sitting on the vessel; commonly referred to as jet skis.
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.
Exports: Collectively, up to 30% worldwide.
Market Share: With combined plant totals of 51%, Yamaha leads in production of Personal Watercraft in North America. In second position with 41% is BRP; third place is held by Kawasaki with 8%.
Trends: From In 2021, production of PWCs in gained nearly 3%. Production is expected to increase 5% in 2022, based on high demand for recreational items that includes Personal Watercraft. Even though sales have skyrocketed, PWC builders experienced supply chain disruptions during the pandemic that impacted deliveries for calendar year 2021.
According to the National Marine Manufacturers Association (NMMA), this trend is here to stay – the boating industry is booming with demand at an all-time high as Americans plan for a summer on the water. As the country returns to a new normal, people are reassessing how they spend their quality time with loved ones, and many are continuing to choose boating as the preferred choice in recreation.
Sales of these recreational vehicles depend on disposable income and leisure time. Expect the production of Personal Watercraft to gain an additional 10% by 2025.
BRP plans to go electric by 2026.PSR
Read more about Sea-Doo electrics.
Carol Turner is Senior Analyst, Global Operations, at Power Systems Research
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North America Economy Faces Multiple Problems
Jim Downey SUMMARY. The United States economy is facing several serious problems that don’t have simple solutions and are not likely to be solved for several years, reaching out to the presidential elections in 2024.
Take your pick of problems: Inflation. Stock Market. Climate Changes. Interest Rates. Housing Prices. Gasoline Prices. Food Prices. Social Unrest. Political Conflicts. Worker shortages. Supply Chain Shortages. Russia-Ukraine Conflict.
The bottom line here is that consumers, investors, businesses, and governments are uncertain about what the future holds for the next several years, and this uncertainty makes it difficult to build multiple-year action plans, whether it’s for purchases, manufacturing, marketing, or investing.
Uncertainty makes people nervous, and Uncertainty is the name of the game in the U.S. for the foreseeable future.
However, we’re still optimistic about the U.S. economy and we see 2022 production growing by 11.6% but that activity is likely to fall to 2.7% next year and drop again to 1.5% in 2024.
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UTV & ATV Market Dynamics
NORTH AMERICA REPORT
Michael Aistrup Market Overview. The global UTV/ATV market size was US$ 8.66 billion in 2021, with a compound annual growth rate (CAGR) of 6.13%. PSR forecasts the global market to grow to US$ 11.67 billion by 2026
The North American UTV/ATV market was valued at US$ 6.66 billion in 2021, and it is expected to reach US$ 8.50 billion in 2026, registering a CAGR of about 5.00% during the forecast period (2022 – 2026).
Applications. UTVs/ATVs were originally associated with sports and recreational activities. Application of these vehicles has diversified, and they are now being used in the agricultural sector and for patrolling, hunting, gardening, and other activities.
A recent application is the United States Army. The military has shown interest in acquiring UTVs/ATVs with features such as rapid transportation, the ability to carry nine fully armed soldiers, agility, and a minimum of 55 mph.
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