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

News: Regions

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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EV Purchase Subsidies Planned To Promote Sales

SOUTHEAST ASIA: 6 MAJOR COUNTRIES REPORT
Akihiro Komuro
Akihiro Komuro

Indonesia plans to introduce a subsidy program to encourage the purchase of EVs starting in 2023. The goal is to increase the number of EV users to 2.5 million by 2025 and reduce air pollution. The EV purchase subsidy program will be added to the list of EV policies introduced by President Joko Widodo over the past year.

Transportation Minister Boudi Karya Sumadi said the government is also considering subsidies for retrofitting internal combustion engine vehicles, but the government is carefully considering this plan because it would bring major changes to the labor-intensive auto industry. The Ministry of Transport plans to approach existing Indonesian automakers, such as South Korea’s Hyundai Motor and China’s BYD, to create an EV ecosystem for Borneo’s new capital city, he said.

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India Bets on Green Hydrogen

INDIA REPORT
Aditya Kondejkar

The electric vehicle market in India is mostly dominated by lithium-ion battery technology, which powers two-, three- and four-wheeler vehicles. But this situation comes with its own set of challenges.

For instance, each battery chemistry has a different energy density, peak power output and charging time. Hence, the industry is working on alternative green solutions, and the government of India is aggressively working on hydrogen as a fuel option.

In terms of refueling time, hydrogen has a definitive advantage over batteries. It takes just a couple of minutes for a hydrogen vehicle to be refueled, irrespective of size, compared to the hours it takes to recharge an electric vehicle.

The union cabinet approved US$ 2.4 trillion (Rs 19,744 cr) for National Green Hydrogen Mission. The mission has four components aimed at enhancing domestic production of green hydrogen and promoting the manufacturing of electrolysers — a key constituent for making green hydrogen. The initial target is to produce 5 million tons of green hydrogen annually.

Source: Business Standard    Read The Article

Along with the government, other industry stakeholders are taking significant steps to develop hydrogen fuel. Ashok Leyland (one of the largest CV makers) is working with Reliance industries on the development and supply chain of hydrogen-powered engines.

Ashok Leyland plans to install fuel-cell engines in an existing fleet of 45,000 trucks that RIL has hired to transport refined products and other marketing goods as a first stage in the strategy. Also, Adani (diversified business portfolio) and TotalEnergies (French energy and petroleum company) have entered into a partnership to jointly create the world’s largest green hydrogen ecosystem.

The potential of the country towards the production of hydrogen is attractive to many companies. European aircraft manufacturer Airbus is looking to source green hydrogen from India as well as Australia and Latin America. 

“India is an amazing location with huge potential for the production of (green) hydrogen at a very exciting cost,” says Glenn Llewellyn, VP Zero-Emission Aircraft at Airbus.

In the 16th edition of the motor show Auto Expo Toyota, MG motors, Tata motors, Hyundai, and VECV,  showcased their hydrogen-powered vehicles across several segments. It’s evident that OEMs are seriously exploring the option of Hydrogen powered vehicles.   PSR

Aditya Kondejkar is Research Analyst – South Asia Operations for Power Systems Research

2022-12-16

DATAPOINT: North America Terminal Tractors

Terminal Tractors – Dec 2022Download
Estimated 2022 Production: 3,800 Units

3,800 units is the estimate by Power Systems Research of the number of Terminal Tractors to be produced in North America (United States) in 2022. Terminal Tractors are specialized heavy duty vehicles designed to move loads at container ports and container terminals. Generally, they are slow moving (under 30km/h) and employ a high torque diesel engine and 4×4 wheel drive which enables them to move very heavy trailer loads, sometimes up to 200 or 300 tons. PSR

2022-12-14

Alternative Power Report, December 2022

AlternativePower Report_December2022Download

Read the expanded December 20222 Alternative Power Report produced by PSR’s Guy Youngs and other analysts at Power Systems Research. This month’s report includes articles on increased battery production in the US., Tesla’s plans for a recycling plant in Texas, increased merger activity in the EV Light/Medium commercial vehicle segment and new power sources being developed for cargo ships.

CV Production Nears Pre-covid Levels

INDIA REPORT
Aditya Kondejkar

A favorable mix of factors is propelling demand for commercial vehicles to their best-ever pre-covid-19 volumes in India. Even though the CV segment has not reached its 2018 peak, it is expected to grow by double digits in the current fiscal year.

This growth is based on healthy demand and a relatively low base last year. While the sales are in green for all the major OEMs, market leader Tata Motors has reported year-over-year drop of 3%.

Source: Auto News     Read The Article

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Korea’s SK Battery To Supply Hyundai’s U.S. Plant

FAR EAST: SOUTH KOREA REPORT
Akihiro Komuro
Akihiro Komuro

Korean battery giant SK Innovation announced that it will expand its supply of batteries to Hyundai Motor Group in North America, and the two companies will discuss the construction of a joint venture plant to increase supply after 2025. SK Innovation says it plans to support Hyundai Motor Group’s increased EV production in North America.

In addition to EV production at its existing Alabama plant, Hyundai Motor plans to start operations of a dedicated EV plant in Georgia by 2025. Kia Motors, a group company, will also increase EV production in Georgia, as stable procurement of batteries, a key component of EVs, has become an issue.

SK On, a battery subsidiary of SK Innovation, already supplies batteries for Hyundai Motor’s mainstay Ioniq EV series. In the U.S., SK On produces batteries at its existing Georgia plant, and after consulting with Hyundai Motor, the company will decide whether to expand the plant or establish a new joint venture plant.

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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

China 2023 EV Sales To Grow To 8.4 Million Units

CHINA REPORT
Jack Hao
Jack Hao

The development trend for the new energy vehicle (EVs) market remained positive through 2022. In November, retail sales of new energy passenger vehicles reached 598,000 units, with a year-on-year growth of 58.2%. From January to November, the domestic retail sales of new energy passenger vehicles were 5.03 million units, with a year-on-year growth of 100.1%.

As for December, the Passenger Transport Federation believes that the subsidy for new energy vehicles will decline by 12,600 RMB this year, which is much more than the decline of 5000 RMB in the previous two years. In addition, some vehicle enterprises have announced a price increase for next year, which may promote strong pre-buying of new energy vehicles at the end of the year and boost sales.

This year, the new energy vehicle market is expected to achieve the annual sales of 6.5 million vehicles.

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