2024 MHCV Production Expected To Decline by 1.6%

News: Production

2024-07-15

2024 MHCV Production Expected To Decline by 1.6%

GLOBAL REPORT
Chris Fisher
Chris Fisher

In 2024, medium and heavy commercial vehicle production in Europe, South Asia and North America is expected to decline modestly while production in China, South America, Japan and Korea is expected to improve over last year.   

Globally, medium and heavy commercial vehicle production is expected to decline by 1.6% this year over 2023.  Moving into 2024, much of the focus on demand is centered around slowing global economic conditions that will likely impact overall freight demand. 

North America. Medium and heavy commercial vehicle production is expected to decline by 4.3% this year over 2023 after strong class 8 truck production last year was driven by on-going pent-up demand.  While class 8 demand is expected to decline this year, it will still be at a relatively high level, especially during the first part of the year. 

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2024 Global Motorcycle Market Estimated at $144 Billion

Michael Aistrup

The global motorcycles market size is estimated to be valued at $144.1 billion in 2024 and is estimated to rise at a compound annual growth rate (CAGR) of 8.1% from 2024 to 2033 and to be valued at $288.46 billion in 2033, according to research by Power Systems Research (PSR).

The unit sales of Motorcycles market are expected to reach 61.62 million by 2029 according to PSR. In the United States, the trend in the motorcycle market is shifting towards electric bikes, as consumers become more environmentally conscious.

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Belgium May Lose Audi Car Production in Brussels

EUROPE REPORT 

Audi said it intends to “restructure” its Forest production site in Brussels, a move that clearly could end with the site closing by 2027. Production of the model Q8 e-tron, the only model produced in Forest, will end sooner than was expected. Audi Brussels manufactured about 53,000 cars in 2023, but the sale of the large Q8 car with a high price tag (the catalog price starts at 86,000 EUR) does not meet market demand in Europe.

The possible closure could put more than 1500 employees out of work. The full production of the electric SUV Q8 e-tron will be relocated to Mexico and China where production costs will be lower than in Europe.

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Brazil Truck Production Grows Significantly

BRAZIL/SOUTH AMERICA REPORT 

Brazil truck production reached almost 64,40 units in the first half of this year, an increase of 36.5% over the same period in 2023

In June, 12,200 trucks were manufactured, a 74.1% increase compared to the same period last year.

Heavy truck sales also grew. In the first six months of this year, 56,800 trucks were sold, an increase of 8%. Last month, 10,000 trucks were sold, a 26.6% increase compared to June 2023.

Source: Automotive Business    Read The Article

PSR Analysis: The production growth was expected due to the pre-production effect with P8 introduction in 2023. The good news is the 26% sales increase in June compared to the same period in 2023, which reinforces the confidence in the Truck Market in the region. PSR

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

Hitachi Demonstrates Ultra-Large Electric Dump Truck

JAPAN REPORT

By Akihiro Komuro, Research Analyst, Far East and Southeast Asia

Akihiro Komuro
Akihiro Komuro

Hitachi Construction Machinery said it is demonstrating a rechargeable all-electric dump truck at a mine in Zambia. It’s the world’s first demonstration of an ultra-large machine with a payload capacity of 200 tons.

Operating conditions and battery life will be verified over a one-year period. The original plan was to have the system in operation by the end of 2024, but the company now plans to launch it in 2025 or later.

The overhead wires will be installed along the mine’s route and the battery will be recharged as it travels along the route. This system allows for more efficient operation than recharging at stops. The batteries mounted on the vehicle body will also be lighter, increasing the payload capacity of the dump truck.

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LG, Hyundai Open Indonesia EV Battery Plant

SOUTH KOREA REPORT

South Korean battery giants LG Energy Solutions and Hyundai Motor have opened their first battery plant in Indonesia. The plant will produce batteries for electric vehicles to be sold locally and in neighboring countries. Indonesian President Joko made the announcement at a ceremony held July 3 in the Karawang region near the capital, Jakarta, to mark the opening of the new plant.

The investment is $1.2 billion, split 50-50 between LG Energy and Hyundai Motor. The annual battery production capacity is 10 GWh, which is equivalent to 150,000 electric vehicles. The plan is to invest an additional $2 billion in the second phase to increase the capacity to 20 GWh.

The company will produce lithium-ion batteries using a cathode material called NCMA. The high nickel content increases battery performance and range. The new plant will be LG Energy’s fifth production site in Southeast Asia, following those in South Korea, Poland, China and the U.S.

LG Energy has already supplied NCMA to Tesla, among others. In addition to Indonesia, the new plant will also serve as an export base for batteries used in electric vehicles sold by Hyundai Motor in neighboring countries in Southeast Asia, India, South Korea and elsewhere.

Source: The Nikkei

PSR Analysis:  South Korea, which is positioning its battery industry as a key national industry, is moving very fast. The fact that it was able to get its battery plant up and running before its competitors may give it an advantage in its future business development in the region. But China’s CATL, the world’s largest EV battery manufacturer, plans to build new factories for batteries, battery materials and battery recycling in Indonesia in cooperation with local companies. The investment is about $6 billion. The news of the new plant in Indonesia is good news for South Korea’s automotive industry, but whether South Korea will be able to maintain a stable supply of EV battery materials in the future remains to be seen yet. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

Chinese Joint Venture Begins Mississippi Battery Plant

CHINA REPORT
Jack Hao
Jack Hao

ACT Company (AMPLIFY CELL TECHNOLOGIES LLC ), a Chinese a joint venture company, has broken ground for a battery production plant in Mississippi.

ACT Company was established by EVE Energy’s wholly owned subsidiary EVE Energy US, Cummins, Daimler Trucks, and Paccar. The joint venture will produce prismatic lithium iron phosphate batteries, mainly for designated North American commercial vehicle applications. It will have an annual production capacity of about 21GWh and will provide more than 2,000 local jobs.

The project is expected to start shipping in 2026, and the three foreign enterprises and their affiliates will become the main customers, purchasing most of the products from the factory.

ACT Company is the first project of EVE Energy’s CLS model, aiming to enhance the flexibility and competitiveness in the global cooperation process, and to work with more partners to jointly promote sustainable development. The successful beginning of this project marks the entry of EVE Energy into a new stage of global development.

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2024-07-14

Honda To Cut Thai Car Production

THAILAND REPORT
Akihiro Komuro
Akihiro Komuro

Honda said it plans to integrate its two automotive manufacturing plants in Thailand by 2025. The move will cut annual production capacity in Thailand by 50% to 270,000 units.

Production at the Ayutthaya plant will be discontinued and consolidated at the Prachinburi plant in central Thailand. The Ayutthaya plant has an annual production capacity of 150,000 units. Honda’s total production capacity in Thailand is 270,000 units, but there was a surplus of 147,000 units in 2011. The company will improve the profitability of its four-wheel business by reducing fixed costs. The Ayutthaya plant will continue to be used as an auto parts plant.

Source: The Nikkei

PSR Analysis:  Just last month in PowerTALK, I reported on Suzuki’s withdrawal from four-wheel production in Thailand, and now it is clear that Honda is also struggling in the Thai market due to the rapid growth of EVs, with the Japanese brand’s share falling 8% year-on-year to 78% in 2023. By 2024, the share is expected to fall even further.

While some in Europe and the U.S. are discussing a review of BEVs, the debate is not as active in Southeast Asia. The region has reserves of rare metals needed for EV batteries, and each country has positioned EV manufacturing as a growth driver for its national manufacturing industry. Since it is difficult to change policy, EVs will continue to be promoted in the future. PSR

Akihiro Komuro is Research Analyst, Far East and Southeast Asia, for Power Systems Research

Bajaj, TVS Enter CNG Two-Wheeler Market

INDIA REPORT
Aditya Kondejkar


Bajaj Auto has recently launched the Freedom 125, the world’s first CNG-powered two-wheeler, generating significant buzz in the Indian market. This innovative move has boosted Bajaj’s market position and also inspired other manufacturers, like TVS, to explore CNG options.

The Freedom 125, priced between Rs 95,000 and Rs 1.10 lakh, offers an impressive CNG mileage of 102 km/kg, which appeals to environmentally conscious consumers and those looking for cost-effective fuel alternatives.

Source: CNBCTV18:    Read The Article

TVS Motor Company is set to follow Bajaj’s lead by developing the Jupiter 125, which will be the first scooter to feature a factory-fitted CNG (compressed natural gas) kit. Slated for launch early next year, the Jupiter 125 is aimed to compete directly with Bajaj’s Freedom 125, offering similar pricing and dual fuel options.

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Alternative Power Report, July 2024

PSR Alternative Power Report – July 2024Download

Canada is preparing to join the tariff war against Chinese EVs, according to a report in the July 2024 issue of the Alternative Power Report prepared by Power Systems Research. Another article in the report notes that even thought EV sales are lagging, they’re positioned for long-term growth. And there’s plenty of battery news in this report prepared by PSR analyst Guy Youngs. PSR