Hon Hai Delivers First EV Bus To Kaohsiung City in Taiwan

News: Power Systems Research

2022-03-22

Hon Hai Delivers First EV Bus To Kaohsiung City in Taiwan

TAIWAN REPORT

On March 3, Hon Hai Precision Industry delivered its first EV, the Model T commercial bus, to a bus route operator based in Kaohsiung City in southern Taiwan. The company aims to deliver 30 buses by the end of this year to expand its EV business, which is a new entry into the market, and the key to its future growth will be the extent to which it can break away from its business model that relies on contracted production of iPhones.

The “Model T” was delivered to Kaohsiung Bus Company. The vehicle was developed by Hung Hua Advanced Technology, a new company jointly established with Yulon Motor Manufacturing (Yulon), a major Taiwanese car manufacturer. Everything about the Model T, from concept to design and manufacturing, was done in Taiwan.

More than 65% of the parts procured were supplied by members of MIH, a group of more than 1,000 cooperating manufacturers recruited by Hon Hai when it entered the EV market, as well as by Taiwanese manufacturers. The vehicle will begin operating on actual bus routes on March 16, the company said.

Hon Hai also plans to introduce EVs for personal use in the future. In addition to the Model C SUV, which will be the first EV for individuals, the company plans to introduce the Model E, a high-end sedan. The company has already announced a plan to achieve sales of 1 trillion Taiwan dollars (over 4 trillion yen) in five years.

Source: The Nikkei

PSR Analysis: Hon Hai moves very fast. Less than two years after announcing its entry into the EV business, Hon Hai delivered one of the company’s first three EV prototypes in October 2021.

The alliance they founded, MIH, has been in existence for more than a year since October 2020, and more than 2,000 companies from Japan and other countries have joined the development coalition. An alliance of unprecedented scale is about to bring about a major innovation in the automotive industry.

MIH (Mobility in Harmony) is an open EV ecosystem that promotes new collaborations in the mobility industry. MIH brings together strategic partners in the EV field, where the development and manufacturing processes are different from those of conventional vehicles, and promotes the creation of next-generation EVs, autonomous driving, and mobility service applications by opening up advanced hardware and software technologies.

Through the realization of reference designs and standardization of EV technologies, many alliance members intend to jointly create an open EV platform that will bring innovation to the industry by shortening development cycles and lowering barriers to entry.

The number of overseas companies outside of China and Taiwan participating in the MIH continues to increase. In addition to South Korea’s Kia and India’s Mahindra, Tier 1 automakers Continental of Germany and ZF are also participating.

Major players include Microsoft, Arm, LG Electronics, ON Semiconductor, Oracle, Kaspersky Lab, Samsung Electronics, Siemens, TomTom, and Dell Technologies.

At the time of MIH’s inception, the impression was that Taiwanese and Chinese companies accounted for more than 95% of its members, but now, one after another, a diverse group of members have gathered from around the world, greatly enhancing its development capabilities.

The unprecedented scale of the MIH is symbolic of the global interest in next-generation mobility, such as EVs and autonomous driving.

It is easy to imagine that this power of MIH has been a major driving force in the development of the EV buses this time around. All eyes are now focused on the future actions of this huge alliance on an unprecedented scale. PSR

2022-03-21

Russia Shuts Down Half of Auto Plants

RUSSIA REPORT
Maxim Sakov
Maxim Sakov

March 10, 2022–The volume of working auto production facilities in Russia has dropped by 45% since the invasion of Ukraine. On March 3, work continued in Russia on 55% of the facilities for assembling LCVs and passenger cars, comparing to 2021. Last year, domestic operations produced 83% of sales in Russia.

Work continues at AutoVAZ (in Tolyatti and Izhevsk), Stellantis and Mitsubishi alliance (PSMA Rus plant), Autotor (Kia and Hyundai assembly), Nissan, Haval, GAZ, UAZ, Mazda Sollers and Isuzu. The total number of vehicles produced by these enterprises has reached 766,000, which is 55% of the sales produced by the Russian automotive industry last year. The total annual production capacity of Russian automotive industry is about 2.7 million vehicles.

After implementation of Western sanctions and the volatility of currency exchange, automakers started raising prices and stopped production and shipping cars. Companies such as Volkswagen, BMW, Renault, Mercedes, Hyundai, Toyota, Sollers Ford have announced the temporary closing of factories. Closed import to Russia Audi, Porshe, GM, Jaguar Land Rover, Lexus, Volvo, Honda, Mazda and others.

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2022-03-20

Foreign Automakers Face Ultimatum

RUSSIA REPORT

March 10, 2022–Foreign companies which have paused their business operations in Russia must resume their work, or face bankruptcy of their Russian division.

Foreign companies made huge investments to localization production in Russia, and they don’t want to leave the Russian market, but they face unprecedent pressure by their own regulators. In this situation the government has developed three scenarios for foreign concerns’ subsidiaries which have production plants in Russia.

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Caterpillar Plans To Stop Production in Russia

RUSSIA REPORT

March 10, 2022—The American company Caterpillar, specializing in construction and mining machines, has suspended work at its plants in Russia because of the situation in Ukraine. Caterpillar said it is donating more than US$ 1 million to the victims of the crisis.

“We are deeply saddened by the tragic events continuing to occur in Ukraine and hope for a peaceful resolution to the crisis. Through the Caterpillar Foundation, we are donating more than $1 million to support both urgent and long-term needs of the Ukraine humanitarian crisis. We are complying with all applicable laws and evolving sanctions, while remaining focused on our employees, dealers and customers. Operations in Russia have become increasingly challenging, including supply chain disruptions and sanctions, and we are suspending operations in our Russian manufacturing facilities” – said in the company statement.

According to the company website, it has a production plant in Tosno (Leningrad region) and a distribution center in Moscow region.

Read The Article

PSR Analysis: Evidently, Cat business in Russia continues, however in reduced size. It’s not possible to maintain production operation with absence of parts. Same reasons were stated in press-release of Hitachi, which has also suspended production in Russia with Cat and Komatsu.   PSR

Maxim Sakov is Market Consultant – Russia Operations, for Power Systems Research

KAMAZ Changes Truck Models Following Daimler’s Exit from Russia

RUSSIA REPORT

March 10, 2022—The KAMAZ plant, which was hit by sanctions, has production orders only until the end of March. Currently, the OEM is working through orders for April and May, according to a company official. Company operations are linked to supplies from Europe, which have been halted, he said.

He also added that production continues, but changes in model range cannot be avoided. The main efforts of the OEM will be concentrated on deeper localization of trucks and rearranging production using local components.

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Piaggio Developing Electric Scooter For Indian Market

INDIA REPORT 
Aditya Kondejkar

Piaggio, which sells electric scooters in Europe, is developing products specifically for India but it will take 18-24 months to enter the market. It will focus on scooters and not launch electric motorcycles.

The large automaker has 2024 in its sights as a realistic go-to-market timeline for the new scooter.

“We are interested in providing customers with a solution in the two-wheeler space that (makes sense) even beyond the effect of subsidies. It is a matter of fact that the players that have entered recently in this space are gaining volumes on the base of subsidies,” says Diego Graffi, MD & CEO Piaggio India

Read The Article

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Sony Unveils EV SUV, Announces Collaboration With Honda

FAR EAST: JAPAN REPORT
Akihiro Komuro
Akihiro Komuro

On March 5, the Sony Group unveiled its prototype EV “VISION-S” SUV to the public for the first time in Japan. The vehicle brings together Sony’s strengths in sensor, audio, and video technologies. On March 4, Sony announced a partnership with Honda, and the two companies will jointly develop EVs through a new company in which both companies will invest, with the aim of launching the EVs in 2025.

Following a sedan-type prototype announced in 2020, Sony unveiled an SUV at the Consumer Electronics Show (CES), a digital technology trade show held in the U.S. in January 2022.

The side mirrors will have no mirrored surfaces and will use images and data collected from nearly 40 sensors, including those in the front and rear of the vehicle, to enhance safety. The dashboard has three displays that can show movies and other content in addition to driving information. Inside the car, Sony’s audio technology is used to provide a realistic music experience.

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Penetration Rate of Intelligent EVs in China in 2030 May Exceed 90%

CHINA REPORT
Jack Hao
Jack Hao

“China has the largest automobile production in the world, the most complete industrial foundation, supply chain foundation, talent foundation and market foundation,” said Li Bin, chairman of Weilai automobile.

These factors provide China with a significant advantage in developing intelligent EVs, he said “In fact, if we can have the advantages of these four aspects at the same time, China is the only one in the world,” he added.

The penetration rate of new energy has exceeded 10% in 2021. From the trend, this target will exceed 20% in 2025. China’s penetration rate of intelligent electric vehicles in 2030 will exceed 90% in new car sales. In recent years, with the accelerated popularization of intelligent electric vehicles, the automotive industry will once again become the commanding height of scientific and technological innovation.

Source:  Beijing News     Read The Article

PSR Analysis: Today, new bus procurement is fully electrified. Buses have fixed routes, and the operation range is relatively stable. At the end of 2020, all buses in key regions and major cities have been replaced with new energy. The trend of bus electrification will continue to be promoted nationwide and gradually electric buses will replace diesel vehicles.

Considering that the running distance and working environment are relatively controllable, the market promotion of oil and electricity price difference, and the gradual completion of bus electrification, taxis will also accelerate electrification.

The second step is to accelerate the electrification of trucks such as urban logistics, environmental sanitation and muck trucks. The State Council proposes to promote green and low-carbon means of transportation, port and airport services, urban logistics distribution and postal express to give priority to the use of new energy or clean energy and strengthen the charging and switching facilities of new energy vehicles.

The penetration rate of private car electrification will also continue to increase. According to the current situation, electric vehicles can replace unified fuel vehicles in terms of price and mileage around 2025. At the same time, with the promotion of electrification in the field of public transport and trucks, driving the continuous improvement of infrastructure, the electrification of private cars will proceed more smoothly.  PSR

Jack Hao is Senior Research Manager – China, for Power Systems Research

2022-03-19

Middle East Energy Show Is Back Live

EUROPE REPORT

Emiliano Marzoli
Emiliano Marzoli

The last two years have seen a turnaround in the global economy and the way of doing business.  Many habits have changed, and trade shows were severely impacted by the pandemic.  For 2022, however the MEE is back live in Dubai.  The floor plan has been reduced, removing roughly half of the space used in previous edition.  This is not a surprise considering that the show was not busy in 2020, with many last-minute withdrawals, and that it was cancelled for 2021.  With many countries around the world relaxing Covid restrictions, attendance was positive, with the halls and stands buzzing during the show.  One common comment, it’s good to be back.

The energy sector is thriving now, pushed by investments in renewables and need for backup power.  During the last few years, critical power (Data centres and hospitals), infrastructure investments and telecommunication have created a strong demand for diesel and gas generators. 

However, the current supply chain shortages, logistic issues and rising costs have represented a tricky challenge for the industry.  From OEMs to engines and components suppliers, companies are working around the clock to find solutions to deliver their products to partners and customers. 

While in the third quarter of 2021, there was optimism looking at 2022, things are not developing as hoped.  In fact, most companies reported an even more challenging environment, with components and raw material shortages continuing, rising prices, and increasing shipping costs.  As already mentioned, during our 2021 forecast, we are not expecting a significant improvement in the supply chain until 2023.  PSR

Emiliano Marzoli is Manager-European Operations for Power Systems Research

DATAPOINT: North America Dumpers/Tenders, 2022 Production, 1620 Units

1,620 units is the estimate by Power Systems Research of the number of Dumpers/Tenders to be produced in North America 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 62.5% of total units produced, Country Home Products leads in production of Dumpers/Tenders in North America. In second position is Allen Engineering with 19.5%; third, is Indy Equipment with 10.5%.    

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