Industry News | Power Systems Research

VW Tukan Is Brand’s First Flex Hybrid Vehicle

Volkswagen confirmed that the upcoming Tukan compact SUV will be its first flex fuel hybrid vehicle developed for Brazil. The model will combine a hybrid powertrain with a flex fuel ICE capable of running on gasoline and ethanol, aligned with local decarbonization strategies and Brazil’s biofuel infrastructure.

The vehicle is expected to be produced locally and positioned in the compact SUV segment, supporting Volkswagen’s regional electrification roadmap. The launch reinforces the company’s focus on hybridization technologies adapted to Brazilian market conditions and regulatory trends.

Schwing Stetter Starts Production of Concrete Mixers

Fabio Ferraresi

Schwing Stetter has started automated production of concrete mixer trucks in Brazil, implementing new manufacturing technologies to increase productivity, quality consistency and operational efficiency.

The initiative includes automation systems across assembly processes and aims to strengthen the company’s local manufacturing footprint in response to demand in the construction sector. The move supports domestic supply capability and aligns with broader industry trends toward digitalization and advanced manufacturing in heavy equipment production.

Source: Revista MT Read The Article

PSR Analysis. The investment in automation reflects the Chinese-German company’s belief in South America Construction Equipment, as it gains productivity and brings cost optimization. Benefits include improved scalability and quality control, though returns depend on sustained construction activity and fleet renewal cycles.

The project is in an expansion stage, with competitiveness linked to localization levels and supply chain resilience. With the investment, capacity should reach 480 units per year. PSR

Exported from Brazil, Mercedes-Benz Axor Debuts in Argentina
Mercedes-Benz has introduced the Axor heavy duty truck in Argentina, supplied from its Brazilian manufacturing base. The model targets long haul and regional freight applications and expands the brand’s portfolio in the Argentine market, leveraging Mercosur trade integration.

The launch occurs amid a challenging macroeconomic environment in Argentina, with demand shaped by currency volatility and restricted financing conditions. The Axor strengthens Mercedes-Benz’s regional product strategy by aligning Brazilian production with export demand across South America.

Source: Automotive Business Read The Article

PSR Analysis. The Axor launch highlights continued reliance on Brazil as a regional manufacturing hub for heavy duty trucks within Mercosur. Market penetration will depend on Argentina’s macro stabilization and freight sector recovery, while currency risks remain a structural constraint. The move supports capacity utilization in Brazil and reinforces cross border supply chain integration. Competitive pressure will center on pricing, financing availability and operating cost efficiency in a constrained transportation market. PSR

Ammonia-Fueled Marine Engine Approved

Akihiro Komuro

Swiss marine power company WinGD says it has completed both Type Approval Testing (TAT) and Factory Acceptance Testing (FAT) for its ammonia-fueled two-stroke marine engine, marking what it described as a world first.

The tests were completed in January 2026 on the X52DF-A-1.0 engine at the Engine & Machinery Division of HD Hyundai Heavy Industries (HHI-EMD) in South Korea, witnessed by Lloyd’s Register together with representatives from major classification societies and under the supervision of EXMAR.

The 52-bore engine is scheduled to be installed on a 46,000 m3 LPG/ammonia carrier ordered for EXMAR. According to WinGD, the vessel series is expected to become the first ammonia-fueled gas carriers to enter commercial service, representing an important step in the shipping industry’s decarbonization efforts. The company said the development program demonstrated strong safety, reliability and performance results under a fuel pathway widely viewed as one of the more promising zero-carbon options for long-distance marine transport.

WinGD said the X-DF-A engine uses high-pressure ammonia injection with a pilot fuel dose of around 5% at full load, while delivering load handling, dynamic response and fuel efficiency comparable to equivalent diesel-fueled X-Engines in both ammonia and diesel modes. The company also said emissions results were encouraging, including NOx levels during ammonia operation that were below those generated in diesel use, alongside negligible contribution of N2O to the overall greenhouse gas emissions footprint. WinGD added that it has already secured an early orderbook of around 30 X-DF-A engines across multiple vessel segments.

Source: WinGD

Many alternative-fuel projects still sit at the concept or pilot stage. This one is different because it was executed on an engine destined for an actual commercial vessel program, under classification-society supervision and in cooperation with a yard ecosystem that can industrialize the result.

BYD Indonesia EV Plant Nears Production

Akihiro Komuro

Chinese electric vehicle manufacturer BYD is moving closer to launching local production in Indonesia as construction of its EV assembly plant in Subang, West Java, progresses toward operational readiness. The facility is designed with an annual production capacity of approximately 150,000 vehicles and is currently entering the final preparation stage ahead of full-scale production.

According to reports, the plant has begun trial production and manufacturing line verification as the company prepares for commercial operations. The project represents one of the largest EV manufacturing investments in Indonesia and reflects the country’s efforts to attract electric vehicle production.

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