Central/South America

  • Brazil Extends Trade Agreements with Mexico and Paraguay

    Brazil recently published two trade agreements with Mexico, and, earlier in July, with Paraguay. The Mexican agreements cover Commercial Vehicles trade, with the reduction of import taxes progressively reaching zero by 2022. The agreement with Paraguay covers auto parts taxes from country to country. The taxes are now between 0 and 2% and will be zero in 2022.

    Source:     Read The Article

    PSR Analysis: The agreement with Paraguay is beneficial to auto parts makers on both sides…

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  • Chile Bets on Hydrogen

    Chile has announced plans to produce US$ 30 billion in green Hydrogen for export by 2050. This involves using the mining industry equipment traditionally powered by diesel in fuel cell powered equipment to make the bridge for current state to future state.

    Fabio Ferraresi
    Fabio Ferraresi

    Source: Financial Times     Read The Article

    PSR Analysis: There are several roadblocks as technology improvement needs, energy cost and investment source for the initiative. So far it sounds like a campaign promise…

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  • The Future of Commercial Vehicles. Perspectives for Brazil

    Published in Automotive Business, August, 26, 2020

    1. INTRODUCTION

    The use of diesel in Commercial Vehicles and its alternatives has been studied and discussed globally over the past two decades. We have updated future trends annually based on the new platforms in our data and new models in development allowing us a 10-year horizon. In August 2019 we published an article on the subject for Automotive Business Brazil, which is now updating.

    Carlos Briganti
    Carlos Briganti

    In the 2019 article we said that fossil diesel propulsion for commercial vehicles would be exposed to several alternatives and therefore the 20s decade would be a decade of significant changes, justifying yearly monitoring of the subject.

    This whole range of studies was then impacted by COVID-19, a new event at the beginning of this decade that is another factor of change in this complex subject.

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  • ANFAVEA Negotiates To Postpone PROCONVE P8 in Brazil

    With the problems caused by COVID-19, ANFAEA is lobbying to postpone the introduction of PROCONVE P8 – an emissions regulation that will make the Brazil emissions level similar to Euro VI.

    Fabio Ferraresi
    Fabio Ferraresi

    ANFAVEA argues that the postponement is needed because of delays in testing and engineering development caused by COVID-19. The level of investment necessary also has increased.

    Source: Automotive Business     Read The Article

    PSR Analysis:  The Brazilian government is not likely…

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  • Higher Octane Gasoline Offered in Brazil

    Fabio Ferraresi
    Fabio Ferraresi

    The new specs as per ANP 087/20 resolution determines the minimum density of 715 kg/m3 and minimum octanes of 92 RON. In January 2022, it will be 93 RON. The Ethanol mix was kept in 27% for regular gasoline and 25% for premium gasolines.

    Source: UOL     Read The Article

    PSR Analysis: With the use of Ethanol in the mix, Brazil gasoline specs get closer to Europe and USA. The goal is to improve the consumption 6% and reduce failures in engines. This may reduce barriers…

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  • Brazil CE Sales To Grow 15% Despite COVID

    Fabio Ferraresi
    Fabio Ferraresi

    Construction Equipment Internal Sales in Brazil from January thru May grew 35% over the same period of 2019. The Brazilian Machinery Builders´ Association (ABIMAQ)  expects 2020 sales to hit 20,000 machines, 15% more than in 2019.

    Source: Valor Econônico      Read The Article

    PSR Analysis: The Construction segment was the less affected by the pandemic than some other segments. The interest reduction directed investment to real state, especially housing, and some measures, such as the new regulation for sanitation, recently approved by the parliament, will boost the Construction business in 2020 and more significantly in the coming years. PSR

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  • Pepsico Acquires 18 Scania Trucks Fueled by NG / Biomethane in Brazil

    After the first sale of NG trucks at Fenatran in October 2019, Scania has sold 22 more, including 18 to Pepsico. The forecast of 100 NG Trucks to be sold this year has been reduced because of the pandemic effect.

    Source: Estadao     Read The Article

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  • John Deere Starts Grader Production in Brazil

    Fabio Ferraresi
    Fabio Ferraresi

    John Deere announced the start of production of G series of Graders in Brazil in the coming months. It had previously imported these units. With the movement, John Deere will attend the South American Market with 90% of products made in Brazil.

    Source: AutoData     Read The Article

    PSR Analysis:  The decision of nationalization started in 2018 and makes more sense with recent local currency depreciation. With this movement, Deere will be more competitive in delivery…

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  • COVID19 Special Report – Brazil Market Update

    Power Systems Research published in the June 13  issue of Automotive Business magazine a high level update on perspectives of MHV and Off-Highway segments. See the article at the link below and translated presentation.

    Carlos Briganti
    Carlos Briganti

    Source: PSR at Automotive Business     Read The Article

    PSR Analysis: Although ANFAVEA published a decreased forecast, we believe that the decrease will be lower than the Light Vehicles decrease. Metrics we follow, such as Diesel consumption and…

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  • Brazilian Production and Sales of Commercial Vehicles Won’t Recover Until 2021

    Power Systems Research analyzes markets of trucks, buses, agricultural and construction machines

    Brazil deaths caused by coronavirus increased sharply in April and May 2020.

    Slump Caused by COVID-19 Will Last into 2021

    The overall slump in production and sales of heavy commercial vehicles (trucks and buses) as well as for agricultural and construction machines should last throughout this year; these segments won’t recover until 2021.  PSR

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