News: PowerTALK

2022-02-20

Truck Production Index (PSR-TPI) Loses 37%

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Jim Downey
Jim Downey
Chris Fisher
Chris Fisher

ST. PAUL, MN — The Q4 2021 Power Systems Research Truck Production Index (PSR-TPI) increased from 116 to 120, or 3.4%, for the three-month period ended December 31,2021, from Q3 2021. The year-over-year (Q4 2020 to Q4 2021) loss for the PSR-TPI was, 190 to 120, or -37%.

The PSR-TPI measures truck production globally and across six regions: North America, China, Europe, South America, Japan and Korea and Emerging Markets.

This data comes from OE Link™, the proprietary database maintained by Power Systems Research.

Global Index: We expect global production volumes in 2022 to gain 3.7% vs 2021, with a positive trend in all regions, except for China, where we expect production volumes to be down -3.6% in 2022 vs 2021. China experienced a surge in demand during 2020 due to the change in emissions regulations, so 2021 was down significantly, about 20%.

All Regions: Global demand for Medium and Heavy Commercial Vehicles (MHV) rebounded in 2021 but overall growth in the segment was flat. Going forward, we expect the growth to accelerate in 2022 and 2023. The exceptions to this rebound trend are in China and India, which continue to decline and sharply drive overall global production numbers into negative territory.

North America: While supply chain disruptions continue to negatively impact the commercial vehicle market, medium and heavy commercial vehicle production is expected to finish 2021 15.8% higher than 2020. The forecasted production growth rate is expected to continue to show improvement through 2023 as supply chain disruptions ease and truck capacity in the market begins to align with demand. The disruption in the supply chain and on-going issues with COVID will continue to impact the market in 2022.    PSR

Jim Downey is Vice President-Global Data Products and Chris Fisher is Senior Commercial Vehicle Analyst at Power Systems Research

2022-01-22

KAMAZ Launches 720 hp Engine

RUSSIA REPORT

PowerTALK, January 2022

Maxim Sakov
Maxim Sakov

KAMAZ said it is installing new 6-cylinder engines working on methane gas and having 720 HP on its trucks. Switching to NG fuel is one of the main trends of the Russian automotive giant. It builds Inline 6 and V8 engines

Inline 6 cylinders engine will be made in several versions but the 720 hp will be available in the top model only. For the economy segment, the OEM will offer a 450 hp engine;  the price of this model will be significantly cheaper.     Read The Article

PSR Analysis: A few years ago, KAMAZ started developing new 6-cylinder inline engines in co-operation with Liebherr. The R&D now is program successfully expanding into a new stage, developing a new range of HHP NG-powered engines.    PSR

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

Autotor To Produce Two Models of Electric Cars in 2023

RUSSIA REPORT

Autotor said it plans to start mass production of electric cars next year. One of the new models will be a city car for young drivers, and second one will be a car for people with limited liabilities.

The OEM already has developed a concept vehicle with the designers from Europe, and there are plans to assemble a test lot of several thousand electric vehicles in 2023. Three possible OEMs are considered as partners in the venture:  Kia, Hyundai and BMW.

Read The Article

PSR Analysis: Considering that there is almost no market for electric passenger cars in Russia, the OEM can expect limited demand for these new cars. And without massive development of a charging infrastructure, there will be no chance for this market to develop. Additionally, climate conditions also add problems for electric car owners and reduce their sales potential. PSR

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

Ural To Produce Axles for Heavy Trucks

RUSSIA REPORT

The Fund of Industrial Development has approved a loan of US$ 27 million (2 Bln rubles) under the “Priority Projects” program, which will allow Ural to build axles at a new production facility. The new site will allow OEM to double production of heavy load trucks and to create about 4,000 jobs.

Currently, these axles are being purchased in China. Ural is going to make this product for its own use, and for sale to other truck makers. Production under the program is expected to begin in 2023.

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Ford Automotive Plant Sold To Korean Sungwoo Hitech

RUSSIA REPORT

The South Korean company Sungwoo Hitech, a manufacturer of auto components that is part of the Hyundai group, has purchased an abandoned Ford plant in Vsevolzhsk.

Details of the deal have not disclosed. However, the plant, which is partly stripped and which has been idle for two years, is being sold for US$ 20 million, a total considered to be far below market value.

For now, the new owner said it is not planning to resume car production there, but the company said it is going to rehab the plant and start production in 2023. Sungwoo Hitech said at this time it plans to invest about US$ 70 million and employ 520 people. Production capacity will be about 265,000 units per year.

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Cabinet Okays Rs 76,000-cr Semiconductor Plan

INDIA REPORT 
Aditya Kondejkar

The India Cabinet has cleared a Rs 76,000-cr incentive plan for semiconductors that will set up more than 20 semiconductor design, components manufacturing and display fabrication units over the next six years.

A specialized and independent “India Semiconductor Mission (ISM)” was launched Dec. 29, 2021, to drive the long-term strategies for developing a sustainable semiconductor and display ecosystem in India. The ISM will act as the nodal agency for efficient and smooth implementation of the schemes on semiconductors and display ecosystem.

Read The Article
On December 15, 2021, India’s Union Cabinet approved the Program for Development of Semiconductors and Display Manufacturing Ecosystem in India, with an outlay of  US$10 billion (INR 760 billion) for the development of a sustainable semiconductor and display manufacturing ecosystem in India.

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LG Chem To Build Plant for Auto Battery Materials in Korea

FAR EAST: SOUTH KOREA REPORT

LG Chem says it will build a cathode material plant for automotive battery materials in Gumi, central South Korea. LG Chem has the second largest automotive battery business in the world. They will continue to invest in increasing production in the materials field to meet the increasing demand and plans to start mass production by 2025 and will build a dedicated line for cathode materials with high nickel content, called NCMA, which can increase the output of batteries.

LG Chem’s new plant will be its fourth; it has two cathode material plants in operation in Korea and one in China. The current production capacity is 80,000 tons. LG Chemical produces its own cathode materials, separation membranes, and adhesives, and supplies them to LG Energy Solution, its battery subsidiary. LG Chem is working with Toray Industries, Inc. to secure the amount of separation membrane to be procured.

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Look for Unprecedented Launch of EVs in Japanese Market

JAPAN REPORT

The Japanese market in 2022 will be greatly affected by two factors: COVID-19 in its third year and the semiconductor shortage. Despite this, companies are making steady progress in their approach to the industrial issues of the environment and safety, and in particular, the full-scale development of EV products is positioned as a major step toward the realization of carbon neutrality by 2050. The launch of EVs in the Japanese market in 2022 will be on an unprecedented scale.

Nissan will start selling its new model “ARIA” at the beginning of the year. Nissan and Mitsubishi are also jointly developing a mini-EV which they plan to launch early in 2022. Toyota and Subaru will also gradually roll out their first jointly developed SUV in Japan and overseas markets starting in mid-2022. Toyota’s “bZ4X” and Subaru’s “SOLTERRA” are the best-selling mid-size SUV EVs globally and will be the touchstone for future EV development. Honda will launch its first two Honda-brand EVs in China in the spring of 2022. These are also SUVs and will be marketed under the name “e:NS1” by Dongfeng Honda and “e:NP1” by Guangqi Honda, both of which are local joint ventures, and will be considered for export from China to global markets.

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In 2025, China’s Construction Machinery Electric Drive Products May Reach 25%

CHINA REPORT
Jack Hao
Jack Hao

Electrification has become one of the important directions of green development within China’s construction machinery segment. Domestic construction machinery leaders have increased the development of equipment electrification and have launched a variety of electrification products.

Some professional organizations predict that by 2025 the penetration rate of main products may reach 25%. The electrification of construction machinery initially replaces conventional diesel engine drive with electric drive and then the hydraulic device is replaced by an electric device. Concrete mixers, truck cranes, muck trucks, excavators and wheel-loaders are the most easily electrically driven products, especially for small construction machinery.

Source:  CLS     Read The Article

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Bad Weather in Brazil Jeopardizes Ag Machines Market

BRAZIL/SOUTH AMERICA REPORT  
Fabio Ferraresi
Fabio Ferraresi

During the last week of 2021 and the first week of 2022, grain crops faced unfavorable weather conditions. At Mato Grosso and Paraná Regions the lack of rain has been the big problem, while in states like Tocantins and Bahia the problem is an excess of rain, influenced by the climatic phenomenon called La Niña. In some states , such as Paraná, the harvest forecasts are 40% lower than the initial forecast and the losses are estimated at US$ 5 Billion in Paraná.

Source: Valor Economico          Read The Article

PSR Analysis: The loss in Agribusiness affects farm cash flow directly and farmer’s ability to invest in Ag Equipment. Moreover, the mood of farmers could be negatively impacted in a year with new waves of COVID 19 and with political instability due to elections. Ag equipment forecasting in 2022 may be challenging and sales results may surprise OEMs, many who expect double digit growth. PSR

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