Beijing Plan Calls for 100% EV Commercial Vehicles

News: Power Systems Research

2022-05-23

Beijing Plan Calls for 100% EV Commercial Vehicles

CHINA REPORT
Jack Hao
Jack Hao

Under its new Five Year Plan, Beijing will expand restriction on the use of vehicles entering Beijing. At the same time,  Beijing will restrict the use of China III diesel trucks and will implement regional traffic restrictions during peak hours of working days, strengthen the management of illegal electric three and four wheeled vehicles, and implement a preferential traffic policy for new energy logistics and distribution vehicles.

The Five Year Plan also calls for the promotion of low-carbon new energy transportation tools, and the promotion of “oil for electricity” of vehicles in public transport, rental (including cruise and online appointment), tourism and freight transportation.

Today, 69,000 diesel trucks have been eliminated in Beijing, and the proportion of clean energy and new energy vehicles in public transportation has reached 90.2%. Beijing plans to accelerate the promotion of new energy intelligent vehicle technology and cost reductions in many applications.

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DATAPOINT: 2022 U.S. Production Hydraulic Power: 6,800 Units

6,800 units is the estimate by Power Systems Research of the number of Hydraulic Power Units to be produced in the United States during 2022.

A Hydraulic Power Unit (HPU) usually refers to a self-contained, free-standing engine assembly that is used to drive one piece of equipment. HPUs are powered by internal combustion engines or AC/DC electric motors.

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.

Market Share:  Dominating production of HPUs in NA is Stanley Hydraulic with 49% of total units produced.  In second position is Great Northern (Brave) with 9.5%. Tradewinds Powers is third with 8%. 

Trends: Production of HPUs in the US increased 22% from 2020 to 2021.  Production is expected to increase another 6% from in 2022.  Hydraulic Power Units (power packs) are used in a variety of applications and industries ranging from marine, construction and military applications. 

The overall gain in 2022 is attributed to the increase in construction and marine related activities.  This product segment will continue to increase steadily over the next 5 years as warranted by current economic conditions and related demands. Expect an additional 10% increase by 2025.    PSR

Carol Turner is Senior Analyst, Global Operations, for Power Systems Research

2022-04-23

Maruti Suzuki To Build EV-Battery Plant

INDIA REPORT 
Aditya Kondejkar

The development work has already been started on a project codenamed YY8 planned for 2024-2025.

Source: Economic Times.    Read The Article

Major auto players in India like Tata Motors, MG Motors and Hyundai have already announced their investment plans in the electric vehicles sector, there wasn’t any formal announcement from Maruti Suzuki, India’s largest automaker. But now, the penny has dropped.

Suzuki Motor, parent of Maruti Suzuki, says it has signed a Memoranda of Understanding (MoU) with the Gujarat State government, and plans to invest Rs 10,440 crore in there to build an EV and battery factory. The MoU was signed at the India-Japan Economic Forum held in New Delhi.

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Korea To Increase EV Battery Material Production

FAR EAST: SOUTH KOREA REPORT
Akihiro Komuro
Akihiro Komuro

Korean materials giants are rushing to increase production of battery materials for EVs. Lotte Chemical plans to invest 160 billion yen to build plants for electrolytes and other materials in Korea and the U.S. LG Chem and POSCO have also announced plans to increase production. The three major Korean battery manufacturers, including LG, have active investment plans, but they are lagging their Chinese counterparts in the upstream area of battery materials. Materials companies are also increasing their supply capacity to compete with the Chinese.

Lotte Chemical, a major petrochemical company, will build a new plant for organic solvents for electrolytes in its own plant. The company will build a new factory with a total investment of 602 billion won, aiming for production by the end of 2023. The company is also considering building a plant related to electrolyte and cathode materials in Louisiana, U.S. It has begun coordination with local governments and other related parties in anticipation of starting production in 2025. The investment is expected to be in the order of 100 billion yen.

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Thai Incentive Program to Promote EVs, Starting in 2022

SOUTHEAST ASIA: THAILAND REPORT

The Thai government plans to introduce an incentive program to promote EVs starting in 2022. The program will focus on providing subsidies to lower sales prices and reducing excise and import taxes. Automakers taking advantage of the program will be required to produce EVs locally from 2024 onward.

According to local media, the subsidy is 70,000 to 150,000 baht per vehicle, depending on the model and battery capacity. The excise tax on purchases will be reduced from the current 8% to 2%. Import duties will be reduced by 20-40% depending on battery capacity and sales price. The current maximum tariff rate is 80%, but the trade agreement will impose no tariff on Chinese-made products and 20% on Japanese-made products. Japanese-made products are also expected to be tariff-free if they meet the conditions. The current sales prices of imported cars vary from about 1 million baht for EVs from China’s SAIC Motor Group and Great Wall Motor to about 1.5 million baht for Nissan Motor’s LEAF at campaign prices.

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2022-04-22

Yanmar Makes Major Battery Buy

FAR EAST: JAPAN REPORT

Yanmar Holdings Co. Ltd. announced it has acquired a majority share in ELEO Technologies B.V., a battery technology company based in Helmond, the Netherlands. By integrating ELEO’s advanced, scalable, and modular battery technology, Yanmar said it will further its electrified powertrain capabilities with customized solutions for off-road applications.

After joining the Yanmar Group as part of Yanmar Power Technology Co., Ltd., ELEO will continue to operate as a stand-alone entity under its own brand at its current location in Helmond, the Netherlands. 

Founded in 2017, ELEO Technologies develops and produces advanced modular battery packs which are differentiated by their proprietary battery management system (BMS) and thermal management technologies. The company is near completion with a new advanced production facility that will increase its annual battery production capacity to 500 MWh, equivalent to approximately 10,000 battery packs. 

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Fleet Renewal Program Goes Live in Brazil   

BRAZIL REPORT
Fabio Ferraresi
Fabio Ferraresi

The Brazil Government has published a law starting the Truck and Buses Scrappage Policy, aiming to renew fleets, increase productivity and efficiency, reduce emissions and improve safety. Depending on the effectiveness of the program, it may affect the MHV market. See complete article translated in our webpage and the original from Automotive Business.

Source: Automotive Business    Read The Article

PSR Analysis: The launch of the Renovar program is a positive sign on the path of improving safety, logistics efficiency and environmental impact for Brazil, with genuine and relevant objectives.

Because it is a voluntary program, operating in phases, with regulations and parameters yet to be defined, it is too early to project the effectiveness and impact on the vehicle market.

We believe that Brazil still needs broader legislation for a long-term program with a gradual and geographically differentiated process to restrict the movement of older, less safe trucks and buses with lower efficiency and higher emission levels. Fleet owners, autonomous carriers, OEMs and the entire production chain need predictability for long-term planning to prepare for and assure feasibility for a broad and scheduled fleet renewal. PSR

By Fabio Ferraresi, Director Business Development South America, for Power Systems Research

Yanmar  Acquires Fast Growing Battery Technology Firm

EUROPE REPORT
Natasa Mulahalilovic
Natasa Mulahalilovic

Yanmar Holdings Co. Ltd, the multi-billion dollar multinational company headquartered in Osaka, Japan, has acquired a majority of shares of a young and fast-growing ELEO Technologies B.V. from theNetherlands, this month. The acquisition has been completed through European’s subsidy, Yanmar B.V. An earlier investor, Lumipol Group, has entirely exited the company.

As a part of Yanmar Power Technology Co, Ltd, Eleo will continue operating as an independent entity under its existing brand and with production located in their current site in Helmond, the Netherlands.

ELEO Technologies B.V. was founded in 2017 to design and produce innovative modular electric batteries systems for use in marine, industrial machine, e-mobility, commercial vehicles or specialized recreational product applications.

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DATAPOINT: US Lawn & Garden Tractors, 2022 Production Estimate, 709,700 Units

709,700 units is the estimate by Power Systems Research of the number of Lawn & Garden Tractors to be produced in the United States during 2022.

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.

Market Share:  With 39% of total units produced, Husqvarna leads in production of Lawn & Garden Tractors in North America.  In second position, with combined plant totals, is MTD with 33.5%; third, also with combined plant totals, is Deere & Co. with 23.5%.    

Trends: In 2021 production of Lawn & Garden Tractors in North America (US) increased 4.5% over 2020 to 683,250 units.   Production in 2022 is expected to reach 709,700 units, a gain of 4.5%, compared to 2021.  The forecasted gain is driven by the demand for new fuel-efficient models in the market along with the demand for new equipment. 

Production has been slowed somewhat by the temporary lull in production of the Craftsman line, the saturation of new products in the market, and the unfavorable mowing conditions caused by the wet spring. 

The latest models offer a variety of features for homebuyers based on yard size. Entry-level lawn riders are suited for 1.5 acres or less and usually have 1-cylider engines.  Mid-grade riders have twin cylinder engines with high HP’s that work well in large cutting areas. 

Production is expected increase up to 5% by 2025; lifespan of this product has about a 10-year turnover.  PSR

Carol Turner, is Senior Analyst, Global Operations, for Power Systems Research

2022-04-06

German Soccer

The European office of Power Systems Research (PSR) this season sponsored a local soccer team in Germany. The A youth of the SSG Gravenbruch is playing in the district class in the district of Offenbach am Main. The club currently occupies fourth place out of a total of 10 teams. The club is coached by Dalibor Sablic, an account manager for PSR.