Search Results for: strong-order-intake-europe-considerable-decline-brazil

2024-03-17

AG and CE Segments Poised for Substantial Growth in Brazil

The agricultural and construction equipment sectors in Brazil are poised for significant growth in coming years, according to data compiled by Anfavea (National Association of Automotive Vehicle Manufacturers) in conjunction with the IBGE (Brazilian Institute of Geography and Statistics).

A comprehensive survey identified 5.1 million agricultural establishments nationwide, of which 14.5% possessed tractors and 2.4% had harvesters, indicating substantial potential for expansion provided farmers have access to both public and private financing avenues for equipment acquisition.

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2020-07-26

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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2022-04-22

Fleet Renewal Program Goes Live in Brazil   

BRAZIL REPORT
Fabio Ferraresi
Fabio Ferraresi

The Brazil Government has published a law starting the Truck and Buses Scrappage Policy, aiming to renew fleets, increase productivity and efficiency, reduce emissions and improve safety. Depending on the effectiveness of the program, it may affect the MHV market. See complete article translated in our webpage and the original from Automotive Business.

Source: Automotive Business    Read The Article

PSR Analysis: The launch of the Renovar program is a positive sign on the path of improving safety, logistics efficiency and environmental impact for Brazil, with genuine and relevant objectives.

Because it is a voluntary program, operating in phases, with regulations and parameters yet to be defined, it is too early to project the effectiveness and impact on the vehicle market.

We believe that Brazil still needs broader legislation for a long-term program with a gradual and geographically differentiated process to restrict the movement of older, less safe trucks and buses with lower efficiency and higher emission levels. Fleet owners, autonomous carriers, OEMs and the entire production chain need predictability for long-term planning to prepare for and assure feasibility for a broad and scheduled fleet renewal. PSR

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

2023-11-16

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

BRAZIL/SOUTH AMERICA REPORT 
Fabio Ferraresi
Fabio Ferraresi

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

2024-03-17

Car OEMs Announce US$ 14.3 Billion Investment in Brazil

BRAZIL/SOUTH AMERICA REPORT 
Fabio Ferraresi
Fabio Ferraresi

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.

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2020-03-22

Brazil/South America Report

This report appeared in the March issue of PowerTALK ™ News

Coronavirus Jeopardizes Brazil AG Machine Production

Lack of components coming from China may be a problem because of work interruptions caused by the coronavirus. According to the Brazilian Machinery Builders´ Association (ABIMAQ), the risk of supply stoppages is high. The Chinese content of an Agricultural Machine produced in Brazil is estimated to be 10% to 15%, with higher concentration on electronics components.

Source: M&T / Globo Rural Read The Article

PSR Analysis: This is an opportunity for local and international players to start
supplying these companies as an alternative source. The time window is short for
development of alternative sources, but global companies may start risk mitigation
plans. Understanding the opportunities, volumes and component content will be
key at this moment.

Production of Cars in Peru Drops 54% in One Year

The combination of market decline by 31% and the increase of vehicle imports
are the main reasons for the drastic reduction in production. From 2010 to
2015, the local production has been above the imports, with significant exports
to neighbor countries as Colombia and Peru. From 2016 – 2018, imports grew
from 31,000 to 103,000 units, while the production grew from 29,000 to 42,000
between 2016 and 2017, after a significant market growth, but reduced from
42,000 to 18,000 in 2019 with the competition from imports.

Source: PSR / AEADE Source: M&T Read The Article

PSR Analysis: Currency policy changes and changes in automotive industry
regulations are the main reasons for the shift in the automotive industry of
Ecuador. These changes affect not only Ecuador, but also the ability to reach
neighbor countries with its products, opening space for other players, like
Brazilian and Chinese. PSR

Fabio Ferraresi is PSR Director, Business Development, South America

2022-05-23

Komatsu Announces Expansion in Brazil

BRAZIL/SOUTH AMERICA REPORT  
Fabio Ferraresi
Fabio Ferraresi

Komatsu announced planned investment of US$ 30 million (R$ 158 M) for a second cycle of production capacity expansion of its Suzano Plant in Brazil. According to Komatsu, production capacity will be increased 26%. Komatsu has invested US$ 20 million (R$ 100 M) during the last three years for 32% capacity expansion and improvements in safety and environmental impact.

Source: M&T Magazine      Read The Article

PSR Analysis: The expansion meets Komatsu and Brazilian CE market growth during the last three years and the forecast for growth in the coming years. Komatsu has been producing strong business in Construction Equipment and especially in mining equipment in Brazil. Komatsu has been emphasizing high value added products in service and after sales. PSR

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