Alternative Propulsion MHVs Down 55% YTD in Brazil

Unlike what happened with automobiles, in which new propulsion technologies registered an increase of almost 60% in the first half of 2023, heavy vehicles powered by electricity or gas dropped 55.5% in this period.

From the 604 units licensed in H1 2022, the volume fell to 269 from January to June this year. The survey was released by the National Association of Motor Vehicle Manufacturers (Anfavea).

Source: Automotive Business    Read The Article

PSR Analysis. Although OEMs say the drop is in line with the overall market reduction, the ICE market does not account for the significant decrease in sales. Sales from January to June 2023 are only 1% below 2022 in the same period. The small volumes and the size of orders can explain the oscillation with orders postponed from Q1 2023 and Q2 2023 with expectations for incentives and better credit in the second half of 2023.

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

First VW Truck Produced in Argentina

The first Volkswagen truck has just left the new exclusive area for the assembly of commercial vehicles of the Industrial Center of Córdoba, Argentina. The vehicle, a VW Delivery 11,180, will be used in the validation of the manufacturing process and for the training of employees. Then it will be part of the fleet that will run tests around the country. The agreement announced by Volkswagen Caminhões e Ônibus and Volkswagen Argentina in December 2022 provides for the manufacture of five models of the brand in that country from 2024.

The new assembly line in Córdoba occupies an area of 15,000 square meters to produce the VW Delivery 9,170 and 11,180 trucks, the VW Constellation 17,280 in chassis-cab and horsepower versions, as well as the Volksbus 15.190 OD bus chassis.

Source: Press Release   Read The Article

PSR Analysis. This production is an important milestone for VW’s plan to produce in scale in 2024 and forward. Forecasts of introduction and production/sales ramp ups are available in PSR’s OE Link/OE Link Sales databases. PSR

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

BYD Expands Production in Brazil

BRAZIL/SOUTH AMERICA REPORT 
Fabio Ferraresi
Fabio Ferraresi

BYD announced the installation of an industrial complex in Camaçari, Bahia. The largest manufacturer of electric vehicles in the world, the Asian giant will invest, in five years, about US$ 600 Million (R $ 3 Billion) in the installation of three factories at the Bahia complex, generating about 5,000 direct and indirect jobs. In addition to passenger vehicles, electric bus and truck chassis will be made on site, as well as a battery split.

The company will take over Ford’s facilities. The deal, however, has not yet been officially announced. The Camaçari pole is the last factory that still belonged to the North American brand in Brazil. The automaker, which announced the end of its local production in 2021, has already sold its facilities in Taubaté (SP) and São Bernardo do Campo (SP).

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New Machinery Requirements

Christopher Bamforth
Christopher Bamforth

New Machinery requirements have been published for Europe and will replace the existing Machinery Directive Jan. 20, 2027. OEMs will have to be compliant with the new requirements on that day since there is no transition period.

With a heavy focus on safety, the environment and machine learning, the main takeaways are that these are EU regulations. This means that manufacturers will not have to wait for each member state’s upgrade of the regulation into law. This may streamline the process although it could mean big changes for some member states that previously had fewer requirements.

And there’s another important consideration. Since we have entered the digital age, all certifications and instructions can be in digital format. One exception is the non-professional machinery’s safety measures which must be included in paper format.

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PowerTALK™, August 2023

Reports of new product development and emissions are featured in several articles in the August 2023 issue of PowerTALK News. Read about VW’s breakthroughs, a new hydrogen-powered generator, and new regulations covering machine products in Europe.

IN THIS ISSUE
  • Alternative Power:
    • VW Reveals Four EV Breakthroughs
    • EVs Report Fewer Greenhouse Gases
    • Methane Is Big Greenhouse Gas Problem
    • Hydrogen Engines Pose Hurdles
  • DataPoint: North America Personal Watercraft
  • Europe: New Machine Regulations
  • Brazil/South America:
    • PSR Sponsors at SAE Mobility Forum
    • Mexico Beats Argentina in Brazil Exports
    • 29% of 2023 Brazil Trucks Have Euro 6 Engines
  • Japan: Firms Develop Hydrogen-Powered Generator
  • Vietnam: Foxconn To Invest $246 Million in Vietnam
  • China: XCMG Group, Toyota Sign Pact
  • India: Marluti Suzuki Plans India Market Expansion

Mexico Beats Argentina for Brazilian Vehicle Exports

Fabio Ferraresi
Fabio Ferraresi

Mexico became the main trading partner of the Brazilian automotive sector in July, beating Argentina in 2023 YTD results. Brazil exports volume to Mexico are favorable because of a 33% growth in the Mexican domestic market. Brazil expanded its exports to the country by 142%, according to Anfavea.

Even with the help of increasing exports to Mexico, Brazilian exports had a significant reduction to 30,300 units, 27.6% below the same period in 2022, which totaled 41,900 units.

The Chilean market has shrunk by 30% this year, from 261,000 to 182,000 units compared to the first seven months of 2022. Purchases of vehicles made in Brazil decreased 61% in the period, from 41,000 to 16,000 units.

In Colombia, the domestic market fell by 60%, from 263,000 to 104,000 units, from January to July compared to the same period last year, and the presence of Brazilian vehicles fell 42%, from 47,000 to 27,000 units.

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29% of 2023 Trucks Fit with Euro 6 Engines

Data released by Anfavea about July Sales and Production show only 29% of the trucks sold in 2023, and produced during the year, met the PROCONVE P8 / Euro VI emissions regulation.

From January to July 2023, 53,900 trucks were produced, 36.2% below the 84,500 units produced in same period last year. This amount is also lower than that produced in the same period in 2021, when 89,500 trucks were produced on the Brazilian OEM assembly lines.

Truck production is still at a slow pace as the market continues to generate low demand for the new PROCONVE P8 technology.

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BEV Demand Boosts Brazil Mining Investment

The increase in global demand for clean energy is accelerating investments in the exploration of reserves of so-called critical or strategic minerals in Brazil. Over the next five years in Brazil, companies are expected to invest approximately US$ 8 billion in key strategic minerals. In copper the expectation is that the resources will reach US$ 4.47 billion, while nickel is in second place, with investments of US$ 2.3 Billion forecast.

Source: Valor      Read The Article

PSR Analysis:  A significant part of the investment will take place in Construction and Mining Equipment such as Hydraulic Excavators, Heavy Duty Wheel loaders and Graders that helps to sustain and increase the growth in the segment in Brazil.   PSR

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

Companies Support Government Fleet Renewal Program

Fabio Ferraresi
Fabio Ferraresi

Gerdau, Vamos and Volkswagen Caminhões have formed a partnership to support the national fleet renewal program, aimed at removing from roads vehicles more than 20 years old.

The fleet renewal program provides for the purchase of low emission and more efficient vehicles by self-employed drivers and other operations. Under the plan, 140 acquired vehicles were sent to Gerdau’s headquarters in Araçariguama, which is responsible for their destruction and recycling.

At the same time, an extension for the incentives program of up to 1 Billion Reais, (US$ 200 M) was announced.

Source: G1      Read The Article

PSR Analysis: The total of resources and mechanisms to allow the access to the resources still are not sufficient for the program to impact the market significantly. However, the small inroads demonstrate the desire of Government and private entities to make changes and should impact the market going forward. More deployments and adjustments in the program should come in the medium term. We will keep monitoring and adjusting our short-medium term forecast as it progresses.   PSR

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