Central/South America | Power Systems Research

2024-03-17

Car OEMs Announce US$ 14.3 Billion Investment in Brazil

BRAZIL/SOUTH AMERICA REPORT

In the past three months, the aggregate investments announced by automotive manufacturers in Brazil have reached a total of US$ 14.3 billion. The largest individual investment came from Stellantis, committing US$ 6 billion to the country between 2025 and 2030, marking a record sum among major vehicle manufacturers operating within the nation. A significant portion of this investment will be directed towards the development of flex-hybrid models.

This investment influx began in December, with Renault earmarking US$ 500 million for the production of a new SUV in Paraná, featuring engine variants that blend ethanol, gasoline, and electricity. In January this year, General Motors (GM) unveiled investments totaling US$ 1.4 billion aimed at product rejuvenation.

Categories: Central/South America, Passenger Cars, Minivans, and SUVs, Production

Office: Brazil Office

2024-02-27

Brazil Posts Record Heavy Duty Trailers Sales in January 2024

Fabio Ferraresi

The Heavy Duty Trailers market has started the year 2024 with a record-breaking January, boasting 7,075 registrations of trailers and semi-trailers. This achievement reflects an impressive 8% surge compared to January 2023.

The exceptional performance of road implements at the outset of the year is predominantly attributed to the agribusiness sector.

Source: Automotive Business Read The Article

PSR Analysis. Notably, the initial months of the year coincide with critical harvest periods for key agribusiness commodities such as soybeans, corn, and sugarcane. Consequently, categories experiencing the most substantial growth in year-on-year comparisons include sugarcane farmers, with an increase of nearly 470%, and bulk carriers, which witnessed a notable uptick of 53%. Optimism pervades the road equipment segment for all of 2024, propelled by favorable forecasts for the industry’s trajectory. PSR

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

Categories: Agricultural, Central/South America, Commercial Vehicles

Office: Brazil Office

Cummins To Produce New Off Highway Engine at Guarulhos Plant

Fabio Ferraresi

Cummins Brazil has announced the introduction of the new QSF 4.5 engine, boasting 210 horsepower at 2300 revolutions per minute (rpm), specifically tailored for the Off-Highway segment.

This 4-cylinder engine represents the pinnacle of power density in the Brazilian market. Start of production at the Guarulhos plant is scheduled to begin this April. The QSF 4.5 is a homegrown project designed by Brazilian engineers to cater to domestic market demands. It is derived from the F 4.5 engine used in the automotive sector by Cummins.

Categories: Central/South America, Off-Highway Equipment, Production

Office: Brazil Office

VW To Invest US$250 Million in Argentina by 2026

Fabio Ferraresi

BRAZIL/SOUTH AMERICA REPORT

Volkswagen announced Feb. 4, 2024, that it plans to invest US$ 250 million in Argentina by 2026. Primarily, the funds will facilitate the ongoing production of the Amarok medium pickup truck, coinciding with the imminent launch of its new generation. Additionally, resources will be allocated towards sustaining the production of the Taos SUV.

At the same time, a new stamping line will be established in Pacheco. The investment also will enable the commencement of Ducati Motorcycle production at the Córdoba unit, which currently focuses on Volkswagen transmissions.

Categories: Central/South America, Economics, Financial, Passenger Cars, Minivans, and SUVs, Production

Office: Brazil Office

2024-01-22

BYD Seeks To Acquire Lithium Mining Operation

Fabio Ferraresi

BRAZIL/SOUTH AMERICA REPORT

BYD is negotiating to acquire Sigma Lithium, the largest lithium mining entity in Brazil, according to the Financial Times. The potential agreement could be valued at US$ 5 billion (R$ 14.3 billion). Sigma Lithium operates a lithium mining facility in the Jequitinhonha Valley in the state of Minas Gerais. The strategic intent behind this acquisition by the Chinese manufacturer is to secure a stable supply of raw materials essential for the production of batteries to power its electric vehicles.

BYD has expanded its presence in Brazil through the acquisition of the Ford plant in Camaçari (BA). This facility is earmarked for the production of light vehicles. Additionally, BYD operates a manufacturing plant in Campinas (SP), specializing in the production of bus chassis and plug-in hybrid electric vehicle (PhEV) panels.

Source: Financial Times Read The Article

PSR Analysis. After Tesla demonstrated interest in the same company, BYD advances its negotiations. It is in line with BYD’s strategy of verticalization and helps to solve one of the strategic bottlenecks of EV production, minerals availability and price. PSR

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

Categories: AltPwr, Batteries, Central/South America, Mergers & Acquisitions, Production

Office: Brazil Office

BYD Plans Supply Chain Verticalization in Brazil

Fabio Ferraresi

In a recent interview with EPBR News Agency, the Chinese carmaker BYD announced its strategic initiative to comprehensively verticalize its electric vehicle production operations in Brazil. This encompasses the entire value chain, ranging from lithium exploration and processing to battery manufacturing, culminating in the production of both buses and automobiles.

Categories: Central/South America, Commercial Vehicles, Electrification, Passenger Cars, Minivans, and SUVs, Production, Supply Chain

Office: Brazil Office

2023-12-17

VW Trucks and Bus To Restart Two Shifts in January

Fabio Ferraresi

Volkswagen Trucks and Bus announced that it will return in January from collective vacations to resume production in two full shifts, marking a return to a pre-April status.

Since April, alternating worker groups have managed the production line and remote work, with workers undergoing training courses during off-duty periods. This measure was essential due to a 37.8% decline in truck production and a 35.2% decrease in bus chassis production from January to October.

From January onwards, production will resume at full capacity, assuming positive market expectations.

Source: AutoData Read The Article

Categories: Central/South America, Commercial Vehicles, Production

Office: Brazil Office

Brazil Off Highway Machine Sales Continue To Decline

Fabio Ferraresi

Agricultural machinery sales totaled 49,500 units through October, down 11.8% from the same period last year. In October, 4,900 units were sold, a 25.8% decline from 2022 and 17.7% below September.

Year-to-date, 25,400 machines were sold, a 24.2% decrease from 2022. October sales were 2,300 units, down 31.6% from October 2022 and 13.8% from September.

Agricultural machinery exports through October were 7,600 units, down 13.1% from 2022. October shipments totaled 733 units, a 37.4% decrease from the previous year but a 7% increase from September.

Categories: Agricultural, Central/South America, Production, Sales

Office: Brazil Office

Argentina Vehicle Production Grew in November

Fabio Ferraresi

BRAZIL/SOUTH AMERICA REPORT

After a slowdown in October, Argentina’s vehicle production rebounded in November, reaching 56,500 units—an 8.9% increase from the previous month and 6% higher than November 2022.

Yearly production stands at 573,700vehicles, up 14.8% from the same period last year.

Exports rose 1.5% in the eleven months of this year, totaling 304,000 units. November’s 30,300 shipments increased by 6.4% from October but decreased by 3.1% compared to November 2022.

Registrations for the year reached 430,600, a 10.9% increase over 2022. In November, 35,7,00 units marked a 15% decrease from October but a 15.6% increase from November last year.

Source: AutoData Read The Article

PSR Analysis: Although the market is demanding more than in 2022, part of the growth in November is related to more working days, totaling 21, compared to October. The new government in Argentina also helps to improve the popular optimism which impacts positively on the decision to buy a new vehicle. PSR

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

Categories: Central/South America, Commercial Vehicles, Production

Office: Brazil Office

2023-11-16

XCMG To Invest US$ 55 Million in Brazil Electric Truck Plant

Fabio Ferraresi

BRAZIL/SOUTH AMERICA REPORT

XCMG has signed a letter of intent to invest in Pouso Alegre, in the south of the state. XCMG also plans to invest in the creation of a research and development center in the state.

Source: Brazil Mineral Read The Article

PSR Analysis: The letter of intent reaffirms the intention of XCMG to gain market share in Brazil, not only on the Off Highway Electric Truck segment, but also in Brazil’s On Highway Truck segment they entered in May 2023. XCMG, the world’s third largest CE producer, threatens CAT, Komatsu and Volvo in the OH Tuck segment and plans to become a player in the On Highway market. It should be noted that XCMG already has a 500,000 square meter plant in Pouso Alegre and probably has enough space to make the investment only for equipment and tools for assembly. PSR

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

Categories: Central/South America, Commercial Vehicles, Production

Office: Brazil Office

News: Central/South America

Car OEMs Announce US$ 14.3 Billion Investment in Brazil

BRAZIL/SOUTH AMERICA REPORT

XCMG To Invest US$ 55 Million in Brazil Electric Truck Plant

BRAZIL/SOUTH AMERICA REPORT

TPI

OE Link™ Offers
Global Coverage

Sign-up for PowerTalk

PSR Global Offices & Affiliate Locations*O

Power Systems Research, Inc.

Power Systems Research, Inc.

Power Systems Research*

Power Systems Research SA

PSR Power Systems
Research India Pvt. Ltd.

Power Systems Research SA*

Power Systems Research

Power Systems Research

Tohan Research, Inc.*

PSR Global Offices & Affiliate Locations*

Power Systems Research, Inc.

Power Systems Research, Inc.

Power Systems Research*

Power Systems Research SA

PSR Power Systems
Research India Pvt. Ltd.

Power Systems Research SA*

Power Systems Research
(Beijing) Co., Ltd.

Power Systems Research

Tohan Research, Inc.*

Industries

Products

Solutions

BRAZIL/SOUTH AMERICA REPORT

BRAZIL/SOUTH AMERICA REPORT

BRAZIL/SOUTH AMERICA REPORT

BRAZIL/SOUTH AMERICA REPORT

BRAZIL/SOUTH AMERICA REPORT

Sign-up for PowerTalk

PSR Global Offices & Affiliate Locations*O

Power Systems Research, Inc.

Power Systems Research, Inc.

Power Systems Research*

Power Systems Research SA

PSR Power SystemsResearch India Pvt. Ltd.

Power Systems Research SA*

Power Systems Research

Power Systems Research

Tohan Research, Inc.*

PSR Global Offices & Affiliate Locations*

Power Systems Research, Inc.

Power Systems Research, Inc.

Power Systems Research*

Power Systems Research SA

PSR Power SystemsResearch India Pvt. Ltd.

Power Systems Research SA*

Power Systems Research(Beijing) Co., Ltd.

Power Systems Research

Tohan Research, Inc.*

Industries

Products

Solutions

PSR Power Systems
Research India Pvt. Ltd.

PSR Power Systems
Research India Pvt. Ltd.

Power Systems Research
(Beijing) Co., Ltd.