Regions | Power Systems Research

2026-01-25

Tesla’s 2025 Europe Data Shows Total Bloodbath

The data is in for Tesla’s full year 2025 in Europe, and frankly, it’s a bloodbath across most major markets. Every market in Europe showed a substantial decline (ranging from -4.1% to -66.9%). There’s a single exception, Norway, and Tesla can’t even count on this market in 2026 because the growth in Norway was caused by changing regulations for 2026, that brought forward car purchases into the last two month of 2025.

According to registration data compiled from major European markets, Tesla saw its total volume drop from roughly 326,000 units in 2024 to just over 235,000 in 2025. That is a staggering 27.8% year-over-year decline

The truth is that this is an impressive demand cliff by any standard that points to significant brand problems, which are due to a mix of Elon Musk, Tesla’s CEO, becoming highly toxic, and Tesla’s EV lineup becoming stale amid tougher competition.

Categories: Alternative Power, Europe, Passenger Cars, Minivans, and SUVs, Sales

Office: United States Offices

2026 Growth of 4.9% Seen in Truck Production

Chris Fisher

Medium and heavy truck production in North America is expected to increase by 4.9% this year compared with 2025. While class 8 truck production is expected to increase by 6.1% this year, the industry continues to be negatively impacted by the weight of the tariffs, low freight demand, excess truck capacity and relatively high finance rates which is expected to continue through at least the first half of the year.

With regard to the implementation of the phase 3 GHG emission regulations, it will be later in the spring before the EPA finalizes any revisions to the standards. Many in the industry believe the EPA will retain the 0.035 g/hp-hr standard along with the 2027 implementation date but cancel the extended warranty requirements which would have added significant up-front cost to the trucks.

Categories: Commercial Vehicles, North America, Production

Office: United States Offices

Government Program To Help Truck Industry

Fabio Ferraresi

In January 2026, the Brazilian federal government launched the Move Brazil Program, a credit support initiative totaling approximately USD 2.0 billion. The program aims to support the domestic truck manufacturing industry and stimulate fleet renewal amid a sharp downturn in heavy-duty vehicle demand.

Financing will be provided through BNDES with annual interest rates between 13% and 14%, grace periods of up to six months, and repayment terms of up to five years, capped at approximately USD 10 million per beneficiary. Eligible beneficiaries include independent truck drivers, cooperatives, transport companies, and large fleet operators, with 10% of total funding reserved for independents and cooperatives.

Financing is restricted to new trucks manufactured in Brazil and compliant with Proconve P8 emission standards, as well as used trucks (model year 2012 onward) meeting Proconve P7 requirements and local content criteria. The program will be available for six months and is positioned as a short-term measure to mitigate layoffs and production cuts in the heavy truck segment.

Categories: Central/South America, Commercial Vehicles, Financial, Legislation, South America/Brazil

Office: Brazil Office

2026 Brazilian Vehicle Market Projected To Grow 3%

Fabio Ferraresi

Brazil’s vehicle distribution association Fenabrave projects that the total new vehicle market in 2026 will grow by approximately 3%, reaching around 2.7–2.8 million units in total sales across all segments compared with 2025 performance. This projection includes ~3% increases in passenger cars and light commercial vehicles, roughly 2.6–2.7 million units, and ~3.5% growth in truck registrations. Sales of buses are also forecast to rise ~3%.

The outlook is supported by expectations of improved credit availability, federal support programs such as Carro Sustentável and Move Brazil, and a strong commodities export environment, which bolsters freight demand. The heavy truck segment, which faced a steep decline in 2025, is expected to contribute to overall market expansion. Fenabrave’s forecast assumes modest macroeconomic improvement and continued easing of credit conditions.

Categories: Central/South America, Commercial Vehicles, Off-Highway Equipment, Passenger Cars, Minivans, and SUVs, Sales, South America/Brazil

Office: Brazil Office

Marine Hydrogen Engine Project Aims for 2028

Akihiro Komuro

The New Energy and Industrial Technology Development Organization (NEDO), Kawasaki Heavy Industries, Yanmar Power Solutions, and Japan Engine Corporation have announced the installation of new liquefied hydrogen fuel supply equipment for demonstration purposes, as well as the start of land-based operation of marine hydrogen engines.

This is part of a project commissioned by NEDO’s Green Innovation Fund/Next-Generation Ship Development Project. Three purely domestic engine manufacturers have formed a consortium: Kawasaki Heavy Industries, Yanmar Power Solutions, and Japan Engine.

Categories: Hydrogen, Japan, Marine, Partnerships, Production

Office: Japan Office

Construction Machinery Demand Could Hit 25,000 Units

Akihiro Komuro

The Indonesian Heavy Equipment Distributors Association (PAABI) forecasts an expansion in construction machinery demand in 2026, with a potential total of 23,000 to 25,000 units. This represents an estimated growth of 5% to 8% compared to 2025, with a projected total market size of around US$3.62 billion.

According to the PAABI Chairman, the increase in demand in 2026 will be driven by the nation’s Strategic Infrastructure Projects (PSN), the ongoing construction of the new capital, IKN, and mining activities at major nickel and coal sites. These projects are expected to increase demand for heavy machinery, such as hydraulic excavators, wheel loaders, and bulldozers.

Categories: Construction, Indonesia

Office: Japan Office

Canada Cuts Tariff on Chinese EVs 100%

Jack Hao

Canada has agreed to allow a maximum of 49,000 Chinese-made electric vehicles to enter the Canadian market annually at a most-favored-nation tariff rate of 6.1%.

This policy marks Canada’s termination of the 100% additional tariff measure on Chinese electric vehicles that had been in effect since October 2024, shifting instead to a tariff-rate quota system. Carney stated that this move aims to restore normalized levels prior to trade friction, with the relevant volume accounting for less than 3% of Canada’s new vehicle market sales.

High tariffs had caused electric vehicle prices to soar and limited options in the Canadian market. According to Statistics Canada data, new registrations of zero-emission vehicles declined significantly in the third quarter of 2025. This tariff adjustment is expected to bring more affordably priced electric vehicle models to Canadian consumers. It is projected that within five years, over 50% of Chinese electric vehicles imported to Canada will be priced below CAD 35,000 ($25,300 USD), offering consumers low-cost alternatives. Meanwhile, Canada expects that within three years, the agreement will drive Chinese enterprises to establish joint ventures in Canada, promote the development of the domestic electric vehicle supply chain, and create employment opportunities for Canada’s automotive manufacturing industry.

Categories: Greater China, Passenger Cars, Minivans, and SUVs, Tariff

Office: China Office

These Drivers Boost Two-Wheeler Market

Aditya Kondejkar

India’s two-wheeler market has re-entered a phase of strong recovery, marking one of the most encouraging periods for the segment in the post-pandemic cycle.

After an extended stretch of muted retail activity—driven by rural income pressure, price inflation, and delayed replacements—the current upswing reflects deeper, broad-based improvements in consumer sentiment. The revival is being powered by a mix of macroeconomic stabilization, rural liquidity improvements, urban premiumization, and targeted OEM strategies.

Source: Times of India Read The Article

Categories: Indian Subcontinent, Production, Recreational Products, Sales

Office: India Office

2025-12-08

Ford Uses Revised Strategy for Success

Aditya Kondejkar

Ford Motor Company’s decision to re-enter the Indian market marks one of the most closely watched developments in the auto industry this year. After exiting mass-market operations in 2021, due to persistent losses and an increasingly competitive environment, Ford’s return signals a significant strategic recalibration driven by changing market dynamics, India’s rising manufacturing relevance, and the company’s global EV transformation agenda.

Unlike the last decade—when Ford struggled with scale, cost structures, and a limited product pipeline—its new India plan is built around focused investments, platform sharing, premium positioning, and leveraging India as an export and engineering powerhouse.

Shifting from Mass-Market to Strategic Segments
Ford’s earlier struggle stemmed largely from competing in high-volume, price-sensitive segments dominated by Maruti Suzuki, Hyundai, and later Tata and Kia. The new strategy avoids this path.

Categories: Indian Subcontinent, Passenger Cars, Minivans, and SUVs, Production, Sales

Office: India Office

Heli Breaks Ground for Factory in Thailand

Jack Hao

Heli Industrial Vehicles (Thailand) Co., Ltd.’s broke ground for its industrial vehicle assembly and lithium battery pack production factory at the Navaan Nong Khuang Industrial Park in Chonburi Province, Thailand Nov. 27, 2025.

To consolidate and expand its leading position in the global market, actively advance its global strategic layout, and build a global production and supply system, Anhui Heli Co., Ltd. has established a strategic partnership with Siam Motors Parts Co., Ltd., a local Thai enterprise, to jointly establish Heli Industrial Vehicles (Thailand) Co., Ltd.

Through this joint venture, the two parties will co-invest in building a new manufacturing base in Thailand, creating an integrated production and sales platform for industrial vehicle complete machines and lithium battery systems.

Categories: Alternative Power, Batteries, Greater China, Industrial, Production, Thailand

Office: China Office

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Construction Machinery Demand Could Hit 25,000 Units

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