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Russia New Car Sales Drop 70% in April
New car sales plummeted by 102,000 vehicles in April, the largest monthly car sales decline in history in Russian, according to the Association of European Business.
Maxim Sakov During April, Russia introduced strict quarantine measures because of the coronavirus, causing car sales to fall by 102,089 units, or 72.4%.
After strong sales in March, dealers have had to suspend or restrict their activity.
“Black April” has dealt a strong blow to dealer cash liquidity, and seriously affected stability during middle-term period. The dealers are preparing to restart their business in May; however, they don’t expect significant sales growth.
AutoVAZ , the largest Russian car manufacturer, reported sales declined by three times in April over March.
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COVID-19 and Lockdown Have Major Impact on Engine-Driven Applications
Even before the COVID-19 crisis, the Indian automotive sector was facing a severe downturn, but the problems were amplified by the Covid-19 pandemic and the lockdowns across India and the rest of the world. The situation was compounded because India was transitioning from BS-IV to the BS-VI era.
Aditya Kondejkar These are challenging times for the Indian automotive sector because of slow economic growth, negative consumer sentiment, axle load norms, a liquidity crunch, low capacity utilization and potential bankruptcies. The current lockdown has severely affected the entire ecosystem of engine driven applications in India.
For the first time, automobile OEMs reported zero domestic sales and very limited exports in April. According to the Society of Indian Automobile Manufacturers (SIAM), the industry is losing more than $300 million per day.
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A New Class of Hybrids
The word “hybrid” in the power generation universe has generally been understood to mean a fossil-fuel engine supplemented by another power source, usually a renewable.
Tyler Wiegert Then, the word grew to include vehicles and equipment that ran primarily on battery power but could be switched to a smaller engine that would recharge the battery while it ran.
Now, we are entering a time when “hybrid” includes drive systems that are primarily renewable-based and supplemented by an additional renewable system.
In this sphere, alternative power has primarily meant batteries and hydrogen fuel cells; one of the major impediments to wide adoption has always been range.
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Vertical Integration Is Key for Competitive Battery Vehicles
R&D World magazine recently examined the global market for lithium-ion batteries and concluded that there could very well be a shortage in the next decade. They projected that recent investments will ensure supply keeps ahead of demand for at least the next two years, but that the demand for lithium in 2030 will be 2.3x higher than the global output in 2019, and investments may not be happening at the pace needed to meet it.
Tyler Wiegert The main bottleneck is that it takes 5-10 years to bring a new lithium or cobalt mine online, but their low prices right now remove some of the incentive to make those investments.
In the absence or shortage of those investments, control of current resources will play a critical role in the production costs of lithium-powered equipment, including on-highway vehicles. In this area, as in many others, Tesla appears to be a leader. The electric car maker has made a number of moves recently to pursue vertical integration, including, most recently, signing a supply deal with Hanwha for battery production equipment. But they are also making moves to secure ownership of the raw materials needed for battery production.
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SOUTHEAST ASIA REPORT: Spread of COVID-19 Shuts Down Automobile Plants
Due to the spread of COVID-19, Japanese automobile OEMs have stopped production in Indonesia. Isuzu stopped operating its plants April 1, and Honda and Suzuki stopped April 13.
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RUSSIA REPORT: April 2020
Large Russian Automakers Resume Work After One Week Stop
Many automakers who suspended work March 30 in Russian, as ordered by the government to the reduce spread of the COVID-19 resumed work April 6. The firms including KAMAZ, AutoVAZ, GAZ Group, Mazda Sollers.
Maxim Sakov However, 98% of office personnel are working remotely. Started working YAMZ, Yaroslavl plant of diesel apparatus and some production lines of Likino bus plant. Procurement production of GAZ plant in Nizhny Novgorod is also working. Schedule of main production lines will be determined within a week depending on situation on suppliers’ plants. Read The Article
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INDIA REPORT, March 2020
Coronavirus Reduces India Auto Components
This article first appeared in the March 2020 issue of PowerTALK™ News
China is one of the leading suppliers of auto components to India, and this supply chain was significantly interrupted in Q1 2020 by the caronavirus. In 2018-19, components worth an estimated US$4.5 billion (out of a total of approximately $17 billion) were exported from China to India. Most of this trade is in electronic components, EGR modules, fuel injection pumps, turbochargers, meter sets, LEDs, magnets, airbag components, and steering system components.
Since the discovery of the Coronavirus in December 2019, this supply chain has been affected. The covid-19 pandemic has started taking a toll on components supply and automotive production in India. The situation is further amplified, as China has terminated all sea routes to other parts of the world.
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Brazil/South America Report
This report appeared in the March issue of PowerTALK ™ News
Coronavirus Jeopardizes Brazil AG Machine Production
Lack of components coming from China may be a problem because of work interruptions caused by the coronavirus. According to the Brazilian Machinery Builders´ Association (ABIMAQ), the risk of supply stoppages is high. The Chinese content of an Agricultural Machine produced in Brazil is estimated to be 10% to 15%, with higher concentration on electronics components.
Source: M&T / Globo…
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We Expect 2020 NA Overall OEM Production To Be Flat
This article initially appeared in the February 2020 issue of PowerTALK News.
SUMMARY. The North American economy remained stable in 2019 and pure economic conditions as well as fundamentals in the region were favorable. Most industries performed very well, and the short-term outlook remains stable to flat for most market segments. However, we see many new developments that could suggest a shift in the trend.
Yosyf Sheremeta Consumer confidence declined slightly in December, following a moderate increase in November. The Conference Board’s Consumer Confidence Index stood at 126.5 in December, 1.4 points higher than in September 2019.
Per Lynn Franco, Senior Director of Economic Indicators at The Conference Board: “While consumers’ assessment of current conditions improved, their expectations declined, driven primarily by a softening in their short-term outlook regarding jobs and financial prospects. While the economy hasn’t shown signs of further weakening, there is little to suggest that growth, and in particular consumer spending, will gain momentum in early 2020.”
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Thailand Auto Industry Brakes Sharply
This article initially appeared in the February 2020 issue of PowerTALK News.
THAILAND–Vehicles produced in Thailand are exported to the world, including Asia, Oceania, the Middle East and Europe. However, the automobile industry is in trouble because of the double punch of the global economy slowing down due to the US-China trade friction and the spread of the new coronavirus.
Akihito Komuro Exports, which account for half of Thailand's automobile production, where Japanese and other automakers such…
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