PowerTALK™ News, March 2020

The coronavirus affected every one of the worldwide regions in which Power Systems Research operates, to one degree or another. The impact of the virus in China–and subsequently on supply chains throughout the world–can be seen in the regional reports in the March issue of PowerTALK News.

In This Issue

  • Dealing With Coronavirus
  • Report from CONEXPO
  • Europe: New Era in EU Industry
  • DataPoint: NA Utility Vehicles
  • Brazil: Coronavirus Jeopardizes Production
  • Brazil: Peru Auto Production Drops 54%
  • China: New Emission Regulations
  • Japan: Komatsu Offers ICT Retro Kit
  • Korea: Battery Market Shares
  • Thailand: Railway Network Expands
  • India: Coronavirus Reduces Components
  • India: OEMs Hurt by China Shutdown
  • Russia: China’s Haval Builds Engine Plant
  • Russia: Claas Shifts Production from Germany
  • Russia: KAMAZ Shows Cabless Truck
  • Russia: Aurus Bike Production Planned

Q1 2020 Motorcycle Production in Brazil Was Strong But Will Drop in April

Different from the segments with 4 wheels or more, Motorcycles plants worked normally in March. The total production has been of 296 k motorcycles in the first quarter, about 7% above the same period of 2019. However, the stops in this sector started March 30 and will remain until the beginning of May.

Source: AutoData     Read The Article

PSR Analysis:

Although motorcycles are also a way of delivering packages in big Cities, sales of motorcycles in Brazil have a closer relationship with lower income individuals who see motorcycles as an alternative to bad public transportation or even animal transportation in rural locations.

This segment of the society has a high number of informal jobs, mostly related to service, heavily impacted by the social restriction measurements. Therefore, the impact on this business for the remainder of the year should be considerably high, despite of the growth in the first quarter. PSR

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 rather than a robust initiative. However, the technology use is progressively closer to reality.  PSR

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

Production of First Russian EV Passenger Car Postponed

Zetta company has had to shift mass production of its Russian car “City Modul 1” until after 2020 because the Fund of Industry Development refused to provide credit of 99.9 million Rubles (about € 1.1 million).

Maxim Sakov
Maxim Sakov

According to the Fund opinion, the company has insufficient budget to start the production, even with the requested credit. “The company needs an investor, who will believe in market potential of the product, and will co-finance the project together with the fund. The fund is ready to consider application one more time as soon as such investor will be found,” the Fund said

“City Modul 1” would become first serial Russian electric car. Zetta plans to make the car on its own production site in Tolyatti; production capacity is 15,000 units per year.

Read More»

OEM Off-Highway Magazine: Heavy Equipment Markets See Improvement in 2021

Off-road equipment markets are expected to see a slight recovery from the devastating effects of COVID-19 in 2021, according to a report prepared by Power Systems Research that appeared in the October 2020 issue of OEM Off-Highway magazine.

One segment, the construction equipment market in North America has been riding a strong economy over the past few years. The segment was due for a slowdown; however, current worldwide economic conditions have caused a rapid cycle to reset in the construction industry. Government is committed to support the demand in the sector by investing heavily into infrastructure. We have yet to see any new level of demand, but we expect to see signs of the new normal in H2 2020 and early 2021. PSR

Iveco Sets Record Sales of NG Trucks in Argentina

After selling 35 NG Trucks in Chile, Iveco announced the sale of 100 Stralis NP Cursor 13 NGs in Argentina for a supplier to O&G industry in the Southern country.     

Source:    Read The Article

PSR Analysis: The acceptance from customers helps to remove a barrier to NG sales, transforming this technology from a Trend to a reality. NG was formerly more deployed in Buses than in Trucks. With the experience of fleet owners, the technology will gain scale rapidly in South America countries and accelerate the volumes in South American markets. PSR

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

DICV To Strengthen Dealership Network

Aditya Kondejkar

Daimler India Commercial Vehicle (DICV), a subsidiary of Stuttgart-based Daimler, plans to increase its dealership count by 10% to 250 this year.  Read The Article

As Ashok Leyland (second largest player in the MH CV segment) is reducing its business to focus on SCV, DICV is adopting an aggressive strategy in the struggling Indian MH CV industry.

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Hyundai Plant in St Petersburg To Reduce Production by 15%

Hyundai plans to reduce annual production by 15% at its St Petersburg plant, according to plant director A. Kossack. As he notes, production volume at the plant has dropped significantly this year: in H1 2020, the plant produced only 73,000 cars, 25% of its production capacity.

Taking into consideration September’s output of 24,000 cars, total production volume through the end of the year should reach about 200,000 vehicles, almost 15% below the 2019 results. The plant has just returned to a three-shift working schedule. During the post-quarantine period, the plant working on a two-shift basis, making 700 cars per day. 

 Read The Article

PSR Analysis: It appears that the most pessimistic forecasts for the passenger car market to drop 40-50% are not going to be realized. Despite this outlook, Hyundai remains positive about the Russian market, and plans to start engine production here in 2021.    PSR

Maxim Sakov is Market Consultant, Russia, for Power Systems Research

Russia To Start Making Diesel Engines for Passenger Cars

Maxim Sakov
Maxim Sakov

Today, there is no mass production of diesel engines for passenger cars in Russia. Production of the last such project, the turbodiesel ZMZ-514 for UAZ SUV, was halted several years ago.

But next year Russia will resume mass production of diesel engines for passenger cars. The PSMA Rus plant in Kaluga will make 1.6-liter diesels of the DV6 family, designed by French PSA. The production start is planned for mid-2021.

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