Japan’s Emphasis on Hydrogen Power Is Questionable

News: Far East

2023-05-24

Japan’s Emphasis on Hydrogen Power Is Questionable

Japan continues its efforts to make hydrogen a carrier of energy at all levels of society even though the results are not productive. Japan’s focus on hydrogen for transportation, imported hydrogen and derivatives for electrical generation, and hydrogen for home heating and cooking is proving economically destructive.

Japan, and especially, Toyota, has been pushing hydrogen for years. Toyota began exploring hydrogen for vehicles in 1992, at the same time it was exploring electric vehicles. It delivered the first EV cars in 1993.

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2023-05-21

Kia Plans Customer Specific EVs

FAR EAST: SOUTH KOREA REPORT

Kia is pursuing its own EV strategy centered on specific applications such as delivery vehicles and cabs. The company is jointly developing delivery vehicles with Korea’s largest online retailer, Coupang, and customer specific EVs will account for 1 million of the 1.6 million EV sales target for 2030. A dedicated plant will also be built in the suburbs of Seoul.

The company and Coupang will develop vehicles with increased cargo capacity and refrigerated and frozen interior equipment, with the assumption that only one driver will be on board. Coupang will have its own distribution center and delivery vehicles for high-speed delivery and will hire drivers directly. Coupang has indicated that it plans to operate 10,000 EV delivery vehicles in the future.

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Hitachi To Launch Remote Excavator in FY2023

FAR EAST: JAPAN REPORT
Akihiro Komuro
Akihiro Komuro

Hitachi Construction Machinery says it will release a medium-sized hydraulic excavator that can be operated remotely during fiscal 2023. Workers will be able to remotely operate the excavator without getting on the machine during construction of housing sites and rivers. Demand is expected to increase due to labor shortages at construction sites, and the company will introduce the medium-sized models, which are widely used.

The main target is hydraulic excavators with a body weight of 10 to 30 tons. Hitachi Construction Machinery will prepare a body that can be remotely controlled and will install the necessary remote-control controller and video system in consultation with the customer.

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2023-04-18

Honda Plans Personal Electric Motorcycles

JAPAN REPORT

Honda said it plans to produce a motor-driven electric motorcycle for individuals in Japan by the end of 2023. This will be the first time Honda produces a product for the public in Japan.

Overall, Honda said it plans to launch more than 10 models of electric motorcycles worldwide by 2025. Their goal is to increase overall sales, including pedal-powered and electric bicycles, mainly in China and India. The company plans to increase its sales to 3.5 million units worldwide by 2030, more than 20 times the 2021 level.

The EM1e electric scooter was unveiled March 17, 2023, in Japan. It has a cruising range of approximately 40 km and uses replaceable batteries. The price is expected to be higher than gasoline-powered scooters with a displacement of about 50 liters. The company plans to launch the moped equipped with pedals that can be pedaled with the feet, and five other motorized bicycle models in China, Southeast Asia, Europe, and Japan by 2024.

Electric motorcycles face the problem that on-board batteries are expensive and production costs are more than 50% higher than those of internal combustion engine models. Honda plans to increase its global sales to 1 million units by 2026, and further to 3.5 million units by 2030. However, demand for internal combustion engines is strong in emerging countries, and Honda intends to maintain its annual production capacity of 20 million two-wheeled gasoline vehicles until 2030.

Source: The Nikkei

PSR Analysis: Honda is finally bringing an electric model to the consumer market. Yamaha already sells the E-Vino to individuals. Harley is spinning off its electric motorcycle division to attract investment, and India’s Hero will release its VIDA electric motorcycle in 2022 and is working with a U.S. company to develop new products.

All companies are very ambitious about electric motorcycles, but there are still many challenges to be overcome before they become widespread. As a first mover example, Taiwan’s Gogoro is doing well by developing a network of battery exchange stations. Honda’s EM1e is equipped with a single replaceable battery, and by taking the battery pack home after use and recharging it at a power outlet at home, the vehicle can start running the next day with a fully charged battery.

The handle makes the battery look easy to carry, but at 10.3 kg, it may be difficult for women to accept it. The spread of battery exchange station networks like those in Taiwan has just begun in Japan, and charging stations in urban areas are still in their infancy. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia for Power Systems Research

2023-03-26

Hitachi Construction Machinery Raises Product Prices

JAPAN REPORT
Akihiro Komuro
Akihiro Komuro

Komatsu will continue to raise prices substantially in the fiscal year ending March 31, 2024. This will be at the same level as the current fiscal year. The impact of price increases on consolidated operating income is estimated to be in the range of 100 billion yen.

This is approximately 20% of operating income for this fiscal year. Although the impact of high raw material prices will lessen in the next fiscal year, there are concerns about an economic slowdown. While the benefits of the yen’s depreciation will diminish, they will build a profitable structure to further increase the operating profit margin from less than 13% in the current fiscal year.

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2023-01-20

Electric Light-Duty Trucks Must Meet 5% METI Goal by FY2030

FAR EAST: JAPAN REPORT
Akihiro Komuro
Akihiro Komuro

The Ministry of Economy, Trade and Industry (METI) now requires shippers that transport a large volume of freight to set a target of using 5% electric light-duty trucks by FY2030, which includes EVs and fuel cell vehicles (CVs), but not hybrids.

They will also be required to submit periodic reports on their progress toward this target. If the efforts are significantly inadequate, the committee can make recommendations to shippers and publicly announce the names of the companies involved.

Of the 800 major manufacturers, retailers, and other companies with large annual transportation volumes, those that are also involved in their own transportation or those that request exclusive transportation from a specific company are eligible for the program.

Source: The Nikkei

PSR Analysis: The fact that hybrids are not included in this goal effectively means that the next-generation development of light-duty trucks has been narrowed down to BEVs or FCVs. However, FCVs still lack hydrogen stations, and the construction cost of hydrogen stations is higher than that of EV charging stations, so the shift to EVs will be promoted first. Light-duty trucks are numerous and can be said to be the artery of domestic logistics. With about seven years to go until 2030, the number of vehicles that will be replaced by EVs will increase every year. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

Hyundai Plans $14.7 Billion for Software Development

FAR EAST: SOUTH KOREA REPORT
Akihiro Komuro
Akihiro Komuro

Hyundai Motor Company is getting serious about developing the software needed for automated driving, etc. It has decided to invest $14.7 billion by 2030 and has begun building a development structure and embarking on M&A.

Hyundai Motor Company has achieved record profits through a shift in strategy in conjunction with a generational change. The company plans to further improve profitability in the software field, where customers can add functions to their cars after purchase. But acquiring human resources will be an immediate challenge for Hyundai.

The “Over the Air (OTA)” function, which updates the latest software via the Internet, will be standard on all new models released in 2023 and after. The plan is to establish a system that allows users to be charged according to function updates. The company will first introduce content such as car navigation systems, audio, lighting, and remote-control functions, and then expand into peripheral areas such as auto insurance policies, to diversify and upgrade services in response to customer needs.

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2022-12-14

Honda To Produce FCVs in the U.S. in 2024

FAR EAST: JAPAN REPORT

Akihiro Komuro
Akihiro Komuro

Honda announced that it will produce electric fuel cell powered vehicles in the U.S. in 2024. They will also be equipped with a plug-in function that allows them to be recharged externally. Honda has set a goal that all new vehicles sold by 2040 will be either EVs or FCVs.

In North America, its main market, Honda will offer FCVs as an option. The new FCV to be produced is based on the CR-V SUV model and will be manufactured in small quantities at the Performance Manufacturing Center in Ohio. The plant had produced the Acura NSX sports car until November. Since the plant has not yet developed a sufficient hydrogen supply base, it will be a plug-in FCV that can also be recharged externally. This is said to be the first production vehicle in North America to adopt such technology.

Honda has been developing FCVs for some time, introducing the FCX in 2002 in Japan and the United States. In Japan, it launched the FCV model Clarity Fuel Cell in 2016. However, due to sluggish sales, the company discontinued production of this vehicle in Japan in 2021.

Source: The Nikkei

PSR Analysis: Plug-in FCVs can run on electricity, fed by plug-ins, where there are no hydrogen stations. If FCVs are to be popularized at a stage where the hydrogen filling infrastructure is weak, a plug-in that can be charged from an electrical outlet may be the best combination. After filling up at a hydrogen station, which might be located far away, the vehicle could be operated by recharging its battery, and the hydrogen could be used as a range extender in case of power shortages. Of course, if a hydrogen station were to be established in the same neighborhood, it would be possible to switch to the same operation as at a gas station. The biggest barrier to sales expansion is the price. In the price competition, FCVs will probably lose out to BEVs. The availability and scale of subsidies for FCVs will have a significant impact on sales. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

2022-10-21

Hyundai Motor and KT Invest in Autonomous Driving

FAR EAST: SOUTH KOREA REPORT

The Hyundai Motor Group and telecommunications giant KT have formed a capital and business alliance. The two companies will invest about 750 billion won in each other by exchanging their shares.

The two companies will jointly develop communication-related technologies to produce autonomous driving equipment. In addition to automobiles, Hyundai Motor is expanding its business in the fields of robotics and urban air transportation (UAM, or flying cabs), and has decided that partnering with KT will enable it to accelerate research and development in fields other than automobiles.

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Agri Week 2022 Report: Drones Become Popular

FAR EAST: JAPAN REPORT
Akihiro Komuro
Akihiro Komuro

Agri Week 2022 is a comprehensive exhibition on agriculture, livestock, and horticulture. It is held twice a year in Kyushu and Kanto. Agricultural materials, smart agriculture products, livestock materials, and products related to industrialization are exhibited. Agriculture Week consists of the following four exhibitions: AGRI TECH (Material & Technology), AGRI NEXT (Next Generation), AGRI PROCESS (Farmer‘s Processing), LIVESTOCK (Livestock Supply & Equipment)

Source: Official HP

PSR Analysis: The drone market is seeing an increase in the number of new entrants. Currently, the market size is estimated to be around 300 billion yen, but some say it will grow to nearly 800 billion yen in five years. This is because the revision of the Civil Aeronautics Law to be implemented this December will lift the ban on Level 4 unassisted visual flights in manned areas. Until now this has been limited to Level 3 unmanned areas. Currently, the use of drones is mainly for spraying chemicals, but it is also being considered for logistics, inspections, civil engineering, and construction.

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