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Global: Recovery Is Strong, but Uneven
GLOBAL REPORT
Yosyf Sheremeta SUMMARY. The global economy performed very well in 2021 and continues to recover, along with trade, employment and incomes. But the revival is unbalanced, with regions/countries, businesses and people facing very different economic realities. Recent improvements also conceal structural changes, which means that some sectors, jobs, and technologies will not return to their pre-pandemic trends. Based on the most recent economic developments and trends, Power Systems Research remains somewhat optimistic about the global recovery.
Many of us hoped to be in the post-Covid phase by now, but it is evident that there is no quick way out. The pandemic has had a profound impact on the world economy, and it will continue to challenge established norms of life and business into the foreseeable future. As we start the new year, many challenges remain, new and old alike: re-surgency of COVID variants, restrictions on travel, supply chain challenges, shortages of materials/goods, inflation, and employment, as well as renewed geopolitical tensions across many parts of the globe.
Power Systems Research witnessed a strong economic recovery globally in 2021, despite regional differences. Output in most OECD countries has now either surpassed or is about to reach pre-pandemic levels, but lower-income economies, particularly those where vaccination rates are low, are at risk of being left behind. Furthermore, the rebound will continue to vary widely among different market segments.
Global inflation re-surfaced in 2021 and presents a real risk to economic recovery in all regions. The renewed inflationary pressure risks lasting longer than was expected a few months ago. The surge in retail and wholesale energy costs in late 2021 will undermine economic growth prospects for large parts of Europe and Northeast Asia well into 2022. Rising food and energy prices already have impact on low-income households in particular.
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PowerTALK™ News, January 2022
Download PDFThe overall global economic recovery looks strong, and the outlook for the global MHV segment is expected to improve in 2022 and 2023, according to forecasts by Power Systems Research analysts. Read the latest global economic news and analysis in the January issue of PowerTALK News. The January issue also includes:
- DataPoint: North America Rollers
- Europe: Kohler Introduces Small Block Diesel
- South America:
- Bad Weather Hurts Brazil Ag Machinery
- Trailer Production Grows 33%
- Brazil Segments See 4% Growth in 2022
- China: Construction Machinery Electrifies
- Japan: Look for Electric Car Growth
- South Korea: LG Chem To Build Battery Plant
- Southeast Asia: Japan Could Miss EV Growth
- India: Semiconductor Incentive Plan Okayed
- Russia:
- KAMAZ Launches 720 hp Engine
- Autotor To Produce EVs in 2023
- Ural To Begin Axle Production
- Ford Auto Plant Sold
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Indonesia Aims at Lead in Integrated EV Production
INDONESIA REPORT
Akihiro Komuro Investment related to EVs is gaining momentum in Indonesia. While the government is aiming to upgrade the industry by mainly using nickel as a battery material, Hyundai Motor of South Korea and Hon Hai Precision Industry of Taiwan have announced their plans to produce EVs and automotive batteries. If the concentration of industries advances, the country will compete with Thailand, which is also making efforts to attract related industries, for the leading role in EV production in Southeast Asia.
At the Indonesia International Auto Show, which started in the suburbs of Jakarta on Dec 11, Hyundai Motor’s compact EV “Kona” attracted much attention. The company will begin production in 2022 at its plant in West Java province, which will soon be operational.
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Toyota Joins BYD To Build Affordable $30,000 Electric Car
JAPAN REPORT
Toyota reportedly has partnered with China’s BYD to develop an affordable electric car to launch next year. The Japanese automaker has widely been recognized as a laggard in the transition to electric vehicles. Years of betting on hydrogen fuel cells and hybrid vehicles has put Toyota behind on battery-electric vehicles.
Reuters reports Toyota is planning to release a “small and affordable electric sedan” in China next year:
The electric vehicle is reportedly going to be powered by BYD’s blade battery cells with LFP chemistry. LFP chemistry has improved enough in recent years that it is moving from mainly being used in electric buses to now electric cars. BYD’s blade battery has attracted a lot of attention – even from Tesla, according to reports coming out of China. A Toyota source talking to Reuters said that it is what is enabling the automaker to produce its first affordable all-electric car:
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UAZ Patriot SUV Collects US$ 3.8 Million in Pre-orders in USA
Maxim Sakov The North-American premiere of the UAZ Patriot SUV took place recently at the Los Angeles international Autosalon. The exclusive importer of the vehicle is Bremach Inc., a California company. The Russian car has its own name, Bremach 4×4. The name Taos, announced earlier, was rejected to avoid the conflict with Volkswagen, which has had a product with this name since 2020.
The Patriot was introduced in two versions–standard and off-road extreme. Both models are equipped with 2.7 gasoline engine ZMZ Pro of 149 hp and a six-gear automatic transmission Punch Powerglide 6L50, connected all-wheel drive. Standard version costs US$ 26,405 in USA.
According to Bremach, in the first 24 hours after the introduction, they received deposits totaling US$ 3.8 million. How many cars were ordered, was not disclosed, but the minimum deposit is US$ 100.
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New Cars in Russia Cost More Than in USA and Europe
The prices for cars in Russia now exceed the prices abroad. The high prices are caused by high custom taxes, certification for Glonass satellite systems and exchange rates of national currency. After many global OEMs built assembly plants in Russia, prices for cars were equal to cars in other markets, and after fall of the Ruble exchange rate in 2014, cars became even cheaper. However, in 2021 prices have grown significantly because of a shortage of semiconductors.
For example, the minimum price of…
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GAZ Group May Start Mass Production of Hydrogen Engines in 2.5 Years
This report comes from General Director of GAZ Power Aggregate division Konstantin Rukhani. “After 18 months we shall complete the tests, after about 2.5 years, we’ll come to mass conveyor production,” he told Ruhani. He added that the design of the new hydrogen engine will be similar to its gas reciprocating engine.
“We consider that at the moment, if we come to the strategy of use gas piston engine working on hydrogen, we can get vehicle with a price of 30-34% higher than current ones. The engine will be less demanding for the purity of hydrogen fuel,” he added.
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MG Motors Plans To Make India An Export Hub
Aditya Kondejkar MG Motor India is considering the possibility of exporting shipments from India to markets such as South Africa and the UK along with tapping other right-hand-drive markets across the globe. Despite the current semiconductor shortage, MG motors plans to prepare for a long-term vision of increasing its exports from India. The start of the company’s South Africa operations has been delayed due to Covid-19.
MG motors has started exporting their vehicles to Nepal, and the company is preparing for the long term to make India an export hub for the neighboring markets. The carmaker has already dispatched its first batch of Hector SUVs to Nepal and plans to add Astor and ZS EV to the lineup in the Himalayan country next year.
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TSMC in Early Talks on Germany Plant
Erik Martin Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is in early talks with the German government about potentially establishing a plant in the country, according to a senior executive.
Various factors, including government subsidies, customer demand and the talent pool, would influence its final decision, TSMC senior vice president of Europe and Asia sales Lora Ho (何麗梅) told reporters on the sidelines of a technology forum in Taipei.
The discussions come as the EU and others seek to increase domestic chip production to mitigate the risk of supply chain disruptions.
The chipmaker has not discussed incentives with Berlin or decided on a location, Ho said.
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Cummins Announces Hydrogen and Electrified Portfolio in Brazil
When completing 50 years in Brazil, Cummins announces the arrival of the New Power unit in South America. This includes Electric propulsion, NG Engines, cleaner Diesel Engines, Fuel Cell and mainly Hydrogen.
Source: M&T Magazine Read The Article
PSR Analysis: As part of its global strategy, Cummins in South America, leads in the first phase in market niches with NG Engines and follows with other new solutions in the following phases. PSR
Fabio Ferraresi is Director, Business Development South…
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