Volvo Construction Equipment has expanded its Brazilian manufacturing portfolio by localizing production of the A45G articulated hauler at its Pederneiras facility in São Paulo. This model, the largest articulated hauler produced by Volvo in Brazil, is now eligible for BNDES’s Finame financing program, that offers attractive rates and favorable payment terms.
The A45G is designed for industries requiring heavy-duty articulated haulers with a payload capacity of 41 tons, such as mining and heavy construction.
Kubota says it plans to build a factory in Germany to manufacture small excavators. Production will begin in 2026, and the new factory will increase the local subsidiary’s production capacity by 40%. Kubota will acquire a factory site near the current factory of Kubota Baumaschinen, which manufactures and sells construction equipment in Germany. In the fiscal year ending December 2022, sales of construction equipment in Europe accounted for 20% of the company’s total sales in this sector, behind North America and Australia, which accounted for 60%.
Demand for small construction equipment in Europe is currently sluggish. In the first nine months of fiscal 2024, sales of construction equipment in Europe declined 29.1 billion yen from the same period a year earlier.
Kubota says the reason for building a new plant despite the sluggish demand for construction equipment is that the market has bottomed out.
PSR Analysis: In Germany, Kubota has held the leading market share for its main product, mini excavators, for 20 years. Although the construction equipment market is currently sluggish, this move can be seen as an investment in anticipation of an upturn in demand in the medium to long term. The EU has the most stringent exhaust regulations, and acceptance in such a market demonstrates the company’s ability to respond to increasingly stringent environmental regulations in other countries. PSR
Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research
The Thai government says it will relax the requirement for EV manufacturers receiving subsidies to produce a certain number of vehicles by 2024. There had been calls for a revision from Chinese manufacturers and others. This is in response to poor market conditions for EVs.
The Board of Investment (BOI) of Thailand provides subsidies to manufacturers that can be applied to the purchase of EVs. The subsidy amount is up to about US$ 3,000 (100,000 baht or about 440,000 yen) per vehicle, which is about 10% of the purchase price of a medium-sized SUV.
In December, FAW Jiefang began production on its first hydrogen engine in Dalian, Liaoning Province, marking a key step for it in the field of green intelligent transportation.
The project is expected to have a total investment of US$84.41 million (614 million yuan), building medium-sized engines ranging from 5 to 7 liters, heavy-duty hydrogen engines, and production lines. The CA6HV3 production line is the world’s first hydrogen engine production line; it will help FAW Jiefang build a more complete powertrain product line. It is reported that the CA6HV3 hydrogen engine, independently developed by FAW Jiefang, is the first domestic heavy-duty commercial vehicle direct-injection hydrogen engine in China. It leads the country in thermal efficiency and product reliability and achieves zero carbon emissions.
The Indian tractor industry, which faced a stagnant first half of the fiscal year, is pinning its hopes on a robust second-half performance. With favorable developments like healthy reservoir levels, improved minimum support prices (MSPs), and a positive outlook on the Rabi crop, manufacturers are optimistic about achieving double-digit growth by the year-end.
H1 Performance: A Mixed Bag In the first half of the fiscal year, tractor sales remained flat, growing marginally to 472,000 units from 469,000 units in the same period last year. The industry’s decline in FY2024 to 876,000 units, following a record-breaking FY23 at 945,000 units, underscores the impact of a high base effect, weak precipitation, and uneven monsoons. A shift in the festive calendar, with Diwali and Dhanteras occurring later this year, also affected demand in the early months.
“Our next target in terms of geographical expansion is Southeast Asia. We have been talking about it for a long time. We want to get into four different markets in Southeast Asia. “We expanded our range of products (in Middle Eastern markets) and that is why as a result we believe we should be in a position to record one of the best years when it comes to international operations” – Shenu Agarwal, Managing Director and CEO
Ashok Leyland is intensifying its international expansion efforts, setting its sights on Southeast Asia to drive export growth in the coming year. This strategic push is part of a broader plan to strengthen its presence outside India while maintaining strong domestic sales. The company has already launched operations in the Philippines, with Malaysia lined up next, aiming to establish a firm foothold in the region.
Bosch and Jiangling Group have signed a joint venture agreement in Nanchang, planning to establish a joint venture to jointly develop and sell electric drive axle systems for light commercial vehicles. The registered capital of the planned joint venture is 500 million yuan (63 million euros), with Bosch holding 60% and Jiangling holding 40%. The newly established company will be mainly responsible for the development, application, production, sales, and service of electric drive axle systems for light commercial vehicles.
Bosch will rely on its experience in electric drive technology to provide core technical capabilities such as electric drive, electric motors, and electric control, while Jiangling Group will contribute its insights in the complete vehicle field and grasp of the local market.
Reducing greenhouse gas emissions at mining sites is a pressing issue. The number of emissions from mines around the world is about 1.9 to 5.1 billion tons per year, which is more than Japan’s annual emissions of about 1.1 billion tons. In addition to methane gas emissions from coal mining, heavy equipment powered by diesel engines is also a source of emissions, and there is a trend toward electrification of mining equipment.
In August, Komatsu announced the development of a diesel-ethanol blended fuel engine. The engine is for large dump trucks, and Komatsu will work with Brazilian mining giant Vale and U.S. engine giant Cummins. Brazil has a high global share of bioethanol production from plant materials. The use of bioethanol is expected to reduce CO2 emissions by up to 70%. The company wants to put it into practice at Vale’s mining sites. In 2023, it signed an agreement with General Motors of the United States to jointly develop hydrogen fuel cell modules. The goal is to install the batteries in large dump trucks with a load capacity of about 290 tons and to start testing them in the second half of the 2020s.
Donald Trump has always pushed for more oil drilling and fewer regulations, left the Paris Agreement in his first term as president, says he hates “windmills,” has promised to scrap offshore wind on “day one” if he won the 2024 election, and calls climate change a “scam.”
And now that he’s won, this is a direct threat to the US’s pledge to reach net zero by 2050. After all, federal policy directly impacts the pace of renewable energy growth, especially when it comes to incentives and research funding
Donald Trump will push fossil fuels and undo renewable energy policies, but it ultimately won’t stop clean energy’s momentum
PSR Analysis: The clean energy market isn’t solely driven by US federal policy. Over the last decade, solar, wind, and EVs have become more cost-competitive and popular. State policies play a huge role too, and many states are committed to their own clean energy goals regardless of who sits in the White House. Only time will tell the true impact of Trump’s victory. PSR
Super materials trailblazer Lyten will invest over $1 billion to build the world’s first lithium-sulfur battery gigafactory in Reno, Nevada. The factory will be capable of producing up to 10 gigawatt-hours (GWh) of batteries annually once it’s fully online. Phase 1 is set to go live in 2027.
Lyten’s gigafactory will cover 1.25 million square feet on a 125-acre campus in the Reno Air Logistics Park. Initially, it will employ around 200 people, eventually expanding to more than 1,000 jobs
PSR Analysis: Lithium-sulfur batteries are considerably lighter than lithium-ion batteries and use materials that are more abundant, so they should have a lower cost than Lithium ion batteries and their widespread use could reduce the pressure on lithium supplies. However, they are less stable and have a shorter lifespan, so unless Lyten has resolved these issue, this approach could backfire. PSR
