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PowerTALK™ News, September 2021
Download PDFThe September issue of PowerTALK News includes several articles discussing electric vehicles and battery power and production. Get the latest information on these important trends. Also, in this issue, read about:
- DataPoint: Outboard Motors
- Europe: CNH Acquires Sampierana SPA
- South America
- Mercedes Announces EV Bus for Brazil
- Jacto Launches Self-Propelled Planter
- Eletra Converts Trucks, Buses to EV
- China: Volvo To Produce Trucks in China
- Japan: Toyota Invests in Auto Batteries
- South Korea: Hyundai To Convert Trucks and Buses
- Southeast Asia: VinFast To Build Batteries
- India: EV Segment Gains Traction
- Russia
- EV Transport Plan To Cost US$ 8 Billion
- Avotor Left Without BMW Subsidies
- Rostselmash Increases Investment Program
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DATAPOINT: 2021 Outboard Motors
Today Joe Delmont presents the 2021 forecast for global Outboard motor production in North Ameria, Japan, Brazil, China and Thailand. This forecast has been developed by Carol Turner, senior analyst of global operations, at Power Systems Research. Carol provides annual production forecasts for important equipment applications.
Transcript
Welcome to the PSR PowerTALK podcast produced by Power Systems Research.
00:06
From Power Systems Research I’m Joe Delmont, editor of PSR PowerTALK.
Today we’ll discuss a data point covering 2021 global production of outboard motors. We’ll be looking at motors production in Brazil, China, Japan, Thailand and the United States.
This forecast has been developed by Carol Turner, a senior analyst of global operations at Power Systems Research. Carol provides annual production forecasts for important equipment applications.
00:38
Only 12% of global production of outboards is produced in the US. It’s done primarily by Mercury Marine and Bombardier Recreational Products.
Japan is the leading producer of outboards. Building more than 71% of the units. And Yamaha Marine produces 43.5% of the units built in Japan.
Thailand is expected to produce about 9% of total global production of outboards.
China is 4th at about 7.5%.
01:13
Yamaha builds more outboard motors than anyone. It has 48.5% of the market and is expected to build almost 251,000 units in Japan this year and another 28,600 units in Thailand. In second position is Tohatsu with 15%, and 3rd is Mercury Marine with combined plant totals also of about 15%.
01:35
Outboard motors are generally defined as detachable boating engines mounted on the stern of a boat on outboard motor brackets and are typically either 2 stroke or 4 stroke engines.
The first outboard was produced by Ole Evinrude in 1909.
Outboard motors can be very powerful units with output ranging as high as 425 horsepower.
02:03
In 2021, we estimate that global outboard motor production will reach about 618,800 units. That’s up about 43,000 units, or seven and a half percent, from the 575,800 units produced last year.
In 2019, though, global production was 680,400 units; so, production this year will still be down about 9% from 2 years ago.
02:38
Despite COVID related factors, boat sales soared when stay-at-home consumers began looking for recreation.
However, manufacturing dropped mostly due to BRP canceling production of Evinrude Motors in May of 2020.
Yamaha reported unit sales of 279,000 in 2020; a 10% cut from the 310,000 it did in 2019.
Mercury Marine discontinued a variety of unpopular Marine and Mercury models, especially its two stroke models.
Outboard motor production peaked in 2018 and that was mostly attributed to the demand for new models, along with the soaring economy.
Outboard motors tend to last decades before owners purchased a new model.
In recent years, new motors are more powerful, but lighter in weight and more fuel efficient, and this certainly attracts consumers.
03:41
Boating is an extremely popular recreational activity worldwide; and enthusiasts want a motor that is powerful but also versatile. The growth in recreational boating over the past several years has been driven in large part by advances in outboard motor power.
Expect production of outboard engines to gain up to 15% by 2025.
04:06
This data is pulled from two of the major Power Systems Research databases: OE Link — which is the database of OEM production and forecast data, and EnginLink — which provides engine production, forecasts, and specification data.
Look for DataPoint reports every month in the PSR PowerTALK news report and on this podcast.
Contact us for more information on other off-road products and on-highway vehicles.
04:36
To read a transcript of this podcast, visit the website at powersys.com and click on the podcast archive.
Thank you for joining the PSR PowerTALK podcast. This podcast will be available on demand. Search for “PSR PowerTALK” in your podcast app or Google “Power Systems Research” to sign up today.
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DataPoint: US Crawlers, 2021 Production: 4,100 Units
Today Joe Delmont presents the 2021 forecast for Crawler production in North America. This forecast has been developed by Carol Turner, senior analyst of global operations, at Power Systems Research. Carol provides annual production forecasts for important equipment applications.
4,100 units is the estimate by Power Systems Research of the number of crawlers to be produced in North America in 2021.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: With combined plant totals of 55% Caterpillar leads in production of crawlers in North America. In second position is Deere with 31.5%; third, is Case with 10%.
Exports: Collectively, up to 30% worldwide.
Trends: During 2020, production of Crawlers in North America (US) decreased nearly 18%, but production is expected to rebound 19% in 2021, compared to 2020. Most of the decline in 2020 was due to COVID-19-related factors such as plant shutdowns, parts availability and lack of workforce. The market significantly dropped in the Spring of 2020 due to the combination of low oil prices and a lull in mining and construction projects.
A few years ago, construction spending in the United States was above annual levels, according to a new analysis of federal data released by the Associated General Contractors of America. Construction and mining activities increased resulting in gains for 2018.
Decreases in production are also attributed to divergent trends however, as public sector construction activity has continued to decline while private sector demand for new construction strengthened. Even though sales dropped considerably in 2020, production is expected to gain up to 15% by 2025 primarily influenced by the positive outlook for construction (infrastructure) and mining related activities. PSR
Carol Turner is Senior Analyst, Global Operations
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PowerTALK™ News, August 2021
Download PDFTaiwan is a one of the world’s leading producers of digital chips for everything from commercial vehicles and autos to Lawn & Garden and other consumer products. Read Erik Martin’s report on Taiwan’s chip production in the August issue of PowerTALK™ News.
Here are more articles in this issue:
- Global:
- 20%+ Growth in Truck Production
- Bitcoin Energy Consumption
- DataPoint: U.S. Crawlers
- Europe: Recovery Stresses Supply Chain
- South America:
- Ford Ends Troller Production
- Toyota Suspends Production
- Komatsu Invests in Para Facility
- Japan: Honda Staff Seek Retirement
- South Korea: Hyundai, LG Chem Build Batteries
- Southeast Asia: COVID Disrupts Supply Network
- India: Scrappage Policy Is Launched
- Russia:
- Ag Equipment Sales Jump
- KAMAZ Builds Parts for Aurus Cars
- Czech Republic Builds Electric SUV
- Global:
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DATAPOINT: Personal Watercraft, 2021 NA Production: 104200 Units
Power Systems Research forecasts that the number of personal watercraft produced in North America in 2021 will reach 104,200 units; an increase over 2020 levels of about 24%.
This forecast has been developed by Carol Turner, Senior Analyst – Global Operations, at Power Systems Research.
Transcript
Welcome to the PSR PowerTALK podcast produced by Power Systems Research.
00:06
From Power Systems Research I’m Joe Delmont, editor of PSR PowerTALK. Today we will discuss a data point covering personal watercraft production in North America this year.
This forecast has been developed by Carol Turner, Senior Analyst of Global Operations at Power Systems Research. Carol provides annual production forecasts for important equipment applications.
Personal watercraft, sometimes called PWC’s or jet skis, can accommodate up to four persons and are primarily designed for marine recreation, although they also are used for water patrols and industrial activities.
00:50
Jet skis hit rough times in recent years. Production of PWC’s in North America dropped 8700 units, or almost 10%, in 2020.
In 2019, North American production was 93,000 units. The next year production dropped to 84,250 units. Production was reduced in 2020 because of plant shutdowns and parts shortages caused by the pandemic.
While COVID caused plant closures, it also drove demand as consumers look for ways to spend their extra time and cash.
01:35
Things are looking much brighter this year than in 2020. Production this year is expected to surge 24% to about 104,000 units. This is based on high demand for recreational products like these watercraft.
01:53
The National Marine Manufacturer’s Association tells us that the boating industry is booming, and that demand is at a record high as Americans are spending more time on the water this summer.
The popularity of outdoor activities has increased in part because of the pandemic, where people are enjoying off-road riding in the dirt — on motorcycles and four wheelers, and on the water — in boats and personal watercraft.
Expect PWC production in North America to ride this wave and to increase up to 10% by 2025.
02:35
The leading personal watercraft manufacturers in North America are Yamaha, which has almost 50% of total North American production. In second position is BRP with 43 1/2%, and 3rd is Kawasaki with a distant 7%.
In announcing financial results recently, BRP said that its Sea-Doo sales for 2020 increased by 7% over the previous year. This, in spite of its Mexico plant having been shut down for two full months as a result of the COVID pandemic.
The company also noted that approximately half of all its Sea-Doos sold in 2020 were purchased by first time buyers. They’re typically younger, with a higher ratio of women, the company said.
Look for an electric personal watercraft from BRP in the next few years. The company recently announced plans to invest $300 million over the next five years to offer options to consumers; with electric models in each of its power sports and marine product lines by the end of calendar year 2026.
03:53
This data is pulled from two of the major Power Systems Research databases. OE Link is the database of OEM production and forecast data, and EnginLink — which provides engine production forecasts and specification data.
Look for data point reports every month in the PSR PowerTALK News report and on this podcast. Remember, to read a transcript of this podcast visit the PSR website at powersys.com and click on the podcast archive.
Contact us for more information on other marine products such as outboard motors and pleasure craft.
04:31
Thank you for joining the PSR PowerTALK podcast. This podcast will be available on demand. Search for “PSR PowerTALK” in your podcast app or Google “Power Systems Research” to sign up today.
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PowerTALK™ News, July 2021
Download PDFIN THIS ISSUE is a report on global truck production that shows truck production growing by nearly 200% in Q2 2021. Read the Q2 2021 PSR Truck Production Index report in the July issue of PowerTALK™ News.
Here are more articles in this issue:
- Edge Computing Connects America
- North America: Strong Post-pandemic Economic Growth Seen
- DataPoint: North American Excavators
- Europe: HansYachts Group Reports ‘Exceptional Year’
- South America
- Chinese Great Wall Acquires Mercedes Facility
- Green Hydrogen Projects Developed in Brazil
- Tupy Developing Hydrogen Engine
- Taiwan: Acquisition May Create Powerhouse
- Japan: Sony Joins Komatsu DX Alliance
- South Korea: SK, LG To Build EV Battery Plant
- Indonesia: Sany Challenges Komatsu
- India: Second FAME II May Boost EV Demand
- Russia
- Russia To Suspend Auto Support
- KAMAZ Introduces Articulated Truck
- Sinara May Cut 20% of Workers
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DATAPOINT: NA Excavators, 2021 Production: 19,900 Units
19,900 units is the estimate by Power Systems Research of the number of Excavators to be produced in North America in 2021.
This information comes from industry interviews and from two proprietary databases maintained by Power Systems Research: EnginLink™ , which provides information on engines, and OE Link™, a database of equipment manufacturers.
Market Share: With combined plant totals of 47.5% Caterpillar leads in production of excavators in North America. In second position is Doosan Bobcat with 22%; third, is Deere-Hitachi with 14.5%.
Exports: Collectively, up to 30% worldwide.
Trends: Excavators are heavy pieces of equipment designed for large scale projects for a variety of sectors that include construction, mining, and industrial activities. Despite the recent lull in production, excavators are a popular device for construction activities.
Production of excavators in North America decreased 9% in 2020, largely because the global pandemic made 2020 challenging across most industries. The off-highway segments (agricultural, construction and industrial) saw dramatic production drops in 2020 compared to 2019.
Another factor in the recent decline is the fact that purchasers are choosing backhoe loaders that are more versatile than excavators. Expect production to gain an additional 3% by 2025.
As fabrication has resumed, assembly is back on track for 2021 with an expected gain of 9% from last year to a total of about 19,900 units.
One example of the rebound: Doosan Bobcat North America, a global leader in the compact equipment industry, is celebrated the completion of a $26 million expansion at its manufacturing facility in Litchfield, Minn., in Q2 2021. The 15-month project nearly tripled the size of the facility, from 70,000 square feet of office and manufacturing space to nearly 200,000 square feet. PSR
Carol Turner is Senior Analyst, Global Operations, for Power Systems Research
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Q2 2021 Power Systems Research Truck Production Index (PSR-TPI) climbs 193.5%
Download PDF
St. Paul, MN (July 12, 2021)— The Power Systems Research Truck Production Index (PSR-TPI) increased 193.5% year-over-year (Q2 2020 to the Q2 2021), moving from 46 to 135. For the three-month period ended June 30, 2021, (Q1 2021 to Q2 2021) the TPI climbed 15.4%, increasing from 117 to 135.
The PSR-TPI measures truck production globally and across six regions: North America, China, Europe, South America, Japan & Korea and Emerging Markets.
This data comes from OE Link™, the proprietary database maintained by Power Systems Research.
Global Index. Overall, medium and heavy truck demand will finish the year on a strong note and continued strength is expected into 2022. On-going supply chain disruptions will continue to impact production throughout the rest of the year and possibly into 2022.
All Regions. Except for China, all regions are expected to experience solid commercial vehicle demand growth this year and into 2022. Chinese heavy truck demand is expected to decline this year primarily due to the implementation of the China VI emission regulations that adds cost to the vehicles but no significant improvement in fuel economy.
North America. In the United States, freight demand remains extremely strong and freight rates very high primarily due to high levels of consumer spending and the overall strong economy.
While the demand side is very strong the supply side is where the issues lie concerning medium and heavy truck production. The on-going issues with the supply chain are expected to continue for the remainder of the year and possibly into 2022 as OEM’s continue to have difficulty sourcing various components such as semi-conductors.
While the 2021 class 8 truck order boards are mostly filled and orders for next year are also expected to be strong, there are some concerns surrounding higher levels of inflation. On-going supply chain disruptions, worker shortages and possible negative effects from high levels of government spending could fuel higher inflation moving forward.
Europe. During the first four months of the year, European medium and heavy commercial truck registrations improved by 28.5% compared to the same period in 2020. Order bookings remain strong primarily due to an improved economy. However, Europe is facing the same problems as other regions with various supply chain disruptions. While sourcing of semi-conductors continues to be a problem, the EU’s proposal to extend the restriction on steel imports into Europe remains a point of concern. While most of the steel is sourced in the EU, imports are needed to fill in the gaps especially during periods of high vehicle demand.
South Asia. Medium and heavy commercial vehicle production in India is expected to reach 261,000 vehicles in 2021 which is an increase of 55% over last year. Moderate growth is also expected in 2022 and 2023 before declining in 2024 partially due to it being an election year. The medium and heavy truck segment will continue to face headwinds due to excess capacity in the market, increased rail freight usage, relative constant freight rate and booming fuel prices. Further, we are witnessing a change in product dynamics–the share of higher tonnage vehicles is rising. Because of this trend, fewer trucks will be needed to haul the same amount of freight.
South America. Medium and heavy commercial vehicle production is expected to increase by 36% this year over 2020 with truck production improving by 41%. Increased vaccinations and an overall improving regional and global economy are driving the growth in vehicle demand. However, continued supply chain disruptions are negatively impacting production and this trend is expected to continue throughout the remainder of the year.
Japan/Korea. Medium and heavy commercial vehicle production in Japan and South Korea is expected to increase by 16% this year over 2020. While South Korean production is expected to increase by 28% this year, Japan production continues to lag and is expected to improve by 14.8%. Japan has been hit particularly hard by the supply chain disruption. PSR expects continued volatility in this region throughout the remainder of the year.
Greater China. Heavy truck demand during the first half of the year was strong primarily due to a truck pre-buy ahead of the China VI emission standard implementation in July 2021. The cost of the emission technology for China VI vehicles is not offset with any significant improvement in fuel economy. The Heavy truck growth rate changed from positive in April to negative in May. Also, in May, the inventory of heavy trucks exceeded 300,000 units. Considering that June to July is the off-season, the short-term heavy truck sales are expected to experience downward pressure. The industry is currently expecting production of heavy trucks to be approximately 1.4 million which is a decrease of 14% compared with 2020.
The next update of the Power Systems Research TPI will be in October 2021 and will reflect changes in the TPI during Q3 2021. PSR
Chris Fisher is the senior commercial vehicle analyst at Power Systems Research
Jim Downey is vice president – global data products at Power Systems Research
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DataPoint 2021 UTV Production
Today, PSR PowerTALK Editor Joe Delmont presents the Power Systems Research 2021 North American Utility Vehicle production outlook. We estimate that North American wheel loader production this year will reach 440,100 units; about even with 2020 levels.
This forecast has been developed by Carol Turner, Senior Analyst – Global Operations, at Power Systems Research.
Transcript
Welcome to the PSR PowerTALK podcast, produced by Power Systems Research.
00:06
From Power Systems Research, I’m Joe Delmont, editor of PSR PowerTALK. Today we’ll discuss a data point covering 2021 utility vehicle production in North America.
This forecast has been developed by Carol Turner, Senior Analyst of Global Operations at Power Systems Research. Carol provides annual production forecasts for important equipment applications.
00: 34
Utility vehicles, sometimes called UTVs or side-by-side machines, can accommodate up to six passengers and are primarily designed for off-road use, although they can be used for industrial activities and as personnel carriers on campuses.
00: 54
UTVs are gaining in popularity because of their flexibility and power. And are replacing ATV’s in many cases because ATV’s generally are limited to two persons seated, one behind the other and aren’t as flexible as UTVs.
01:12
In 2021, we estimate that North American UTV production will reach 440,100 units, down about 400 units, or 9%, from the 440,500 units produced last year.
01:30
About 40% of US production is exported worldwide, up to 85% of Mexico’s UTV production is for North American markets and Canada exports about 90% of its small 1700-unit production.
01:48
In 2019, North American production was 424,800 units. Production climbed almost 16,000 units, or about 4% in 2020, to that 440,500-unit level we discussed. Despite negative COVID related factors, the pandemic actually fed the demand for utility vehicles from recreational and industrial uses to military applications.
02:19
This is known as the pandemic paradox, because sales surged during lockdowns. The popularity of outdoor activities has increased, in part because of the pandemic. And people are enjoying off-road riding in the comfort and safety that is provided by UTVs.
02:39
The growth also comes from stabilization of the overall economy. Demand for products in the golf industry, federal government incentives, and the desire for new equipment with greener technology, especially within the sport and utility sectors.
02:56
Expect UTV production in North America to increase up to 5% by 2025. The leading UTV manufacturers in North America are Polaris — which has 32% of total North American production with its plants in the US and Mexico, in second position is Deere — with combined plant totals of 11.5, third is Kawasaki with 11%, just edging out Honda by only about 125 units which also has 11%.
There are nearly two dozen other manufacturers of UTVs in North America — including Arctic Cat, Clubcar, Kawasaki, Textron, Toro, and Yamaha.
03:36
This data is pulled from two of the major Power Systems Research databases, OE Link — the database of OEM production and forecast data, and EnginLink — which provides engine production forecasts and specification data.
Look for data point reports every month in the PSR PowerTrack news report and on this podcast.
Contact us for more information on other off-road products, such as mixers and agricultural equipment.
04:22
Or Google “Power Systems Research” to sign up today.
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Datapoint: 2021 Grader
Today, PSR PowerTALK Editor Joe Delmont presents the Power Systems Research 2021 North American Grader production outlook. We estimate that North American grader production this year will reach 2325 units; up about 8% from 2020 levels. This forecast has been developed by Carol Turner, senior analyst-global operations, at Power Systems Research.
Transcript
Welcome to the PSR PowerTALK podcast, produced by Power Systems Research.
From Power Systems Research I’m Joe Delmont, editor of PSR PowerTALK. Today, we’ll discuss a data point covering grader production in North America for 2021.
This forecast has been developed by Carol Turner, Senior Analyst of Global Operations at Power Systems Research. Carol provides annual production forecasts for important equipment applications.
Motor graders are used worldwide to build and maintain roads, highways, airports and other construction projects.
00:44
In 2021, we estimate that North American grader production will reach 2525 units, up about 185 units, or 8%, from the 2340 units produced last year. About 30% of this production is exported worldwide.
In 2019, North American production was 2815 units; but production dropped sharply in 2020, plunging about 17% to only 2340 units.
01:24
The decline was driven by Tier 4 pre-buying incentives and the lull in activities that used graders that are predominantly road related.
01:34
Motor graders have a long lifespan and, as a result, demand for new machinery is not always necessary; even though construction related activities focusing on road construction are ongoing.
This product segment generally is not directly affected by COVID; however, with less roadway traffic, road construction can be expedited.
02:00
Expect grader production in North America to increase up to 10% by 2025. The leading grader manufacturers in North America are Deere — which has 59% of the total North American production, followed by Caterpillar — with 37%, and Wheeler — with two percent.
This data is pulled from two of the major Power Systems Research databases — OE Link, the database of OEM production and forecast data, and EnginLink, which provides engine production forecast and specification data.
Look for DataPoint reports every month in the PSR PowerTALK news report and on this podcast.
Contact us for more information on other off-road products, such as mixers and agricultural equipment.
02:59
Or Google “Power Systems Research” to sign up today.
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