Brazil Government Announces US$ 65 Billion Agriculture Funding Plan

News: Central/South America

2022-07-20

Brazil Government Announces US$ 65 Billion Agriculture Funding Plan

The Brazil government announced June 29 the new Safra Plan for 2022/2023 with a total of R$ 340 Billion (US$ 65 Bi) to fund business related to Agriculture,  including Agricultural Machines and Trucks for product transportation. The amount is 36% higher than the previous year plan.

Source: Automotive Business     Read The Article

PSR Analysis: While the volume of funds is higher, the interest rates are also higher. In addition, the prices of agricultural supplies are higher than in the previous cycle. Agricultural Machines should maintain its high production and sales trend while Trucks should grow due to pre-buy caused by Proconve P8 (Equivalent to Euro 6) by January 2023. PSR

Mercedes Makes Fourth Production Shutdown in Brazil

BRAZIL/SOUTH AMERICA REPORT  

Despite high demand, Mercedes announced its fourth temporary production stop at the plant in São Bernardo do Campo-SP, from July 4-15. In the announcement, Mercedes mentions the shortage of components and its effort to work with the supply chain to meet commitments with customers.

Source: Automotive Business     Read The Article

PSR Analysis. The shortage of components, particularly semiconductors, is taking longer than expected and is affecting the MHV market more than expected. It may affect market projections if the supply chains do not recover 2H 2022.    PSR

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

2022-06-25

Brazilian Marcopolo Launches H2 Bus in Australia

Fabio Ferraresi
Fabio Ferraresi

Brazilian-based Marcopolo has expanded its product line of renewable and zero-emission fuels. Volgren, a company owned by the Brazilian manufacturer, is Australia’s largest bus producer. It has signed an agreement with Wrightbus, an Irish bus manufacturer, and market leader with Hydrogen technology in Europe, to develop and launch hydrogen fuel cell-powered buses for the Australian market.

The first units of the Volgren-Wrightbus are expected by early 2023. The vehicles will be the first Hydrogen buses in Australia to be built by a local manufacturer using European fuel cell technology.

Source: Press Release     Read The Article

PSR Analysis: Marcopolo is committed in its strategy on new propulsion, either with their own EV chassis in Brazil or with the H2 chassis in other markets, such as the Volgren in Australia. It enables Marcopolo to compete better in growing markets while it keeps its position in ICE markets with its current products.    PSR

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

Trailers with Electric Drive Axle Authorized in Brazil

BRAZIL/SOUTH AMERICA REPORT  

Heavy vehicles using electric axle systems in the trailer now can be driven on Brazilian Roads, following approval by the National Traffic Council (Contran) at its meeting in May.

Suspensys, a Brazilian company part of Randon group launched the product at Fenatran of 2019, but only now has it been approved by traffic authorities.

Source: M&T Magazine     Read The Article

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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

Agrishow 2022 Sells US$ 5 Billion in Ag Equipment

Following two years with the show canceled because of COVID-19, the 2022 edition of the biggest agricultural segment trade show reached US$ 5.5 Billion (R$ 11.2 Billion) in equipment sales, including Agricultural Machines, irrigation equipment and storage equipment. A total of 193,000 people visited the show, including our team of PSR representatives in South America. This year’s sales are 287% over the R$ 3.9 Billion sales posted in 2019.

Source: Info Money    Read The ArticlePSR Analysis: The result indicates the continuous growth of the Agricultural Equipment Market and the overall Agricultural Business in Brazil. A record harvest is expected in 2022 with 6.4% increase forecasted over 2021. The forecast for next 10 years is more crops with higher productivity–that means more technology with new machines.  PSR

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

2022-03-20

Electric VW E-Delivery Has New Chargers and Reach Into Colombia

BRAZIL REPORT
Fabio Ferraresi
Fabio Ferraresi

VWCO will increase the offer of homologated chargers and now it can be charged in more than 10 different wall boxes. In addition to the new chargers, VW is starting the sale effort in Colombia in agreement with Porsche Colombia, with versions of 11 and 14 tons.

Source: Automotive Business    Read The Article

PSR Analysis: Colombia is a market with high acceptance for EV and alternative propulsion and sales of this vehicle should grow fast. Total cost of ownership is still an issue for this product in Brazil, but many companies are investing in these products to associate the green and environmental appeal to its brands.   PSR

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

São Paulo Starts Construction of BRT Aiming Electric Buses

BRAZIL REPORT

The São Paulo Government has announced the start of a BRT line, going through cities surrounding the São Paulo capital city with plans to be operating in 2023. This line has 17 km of extension and will use 82 Battery Electric Articulated 23 meter buses.

Source: M&T      Read The Article

PSR Analysis: The cities surrounding São Paulo Capital have started deploying the initiatives of the main city, as expected. São Paulo City has a more aggressive plan for using BE Buses  with 800 for 2022 and the average of 1600 per year from 2023 to 2032.  PSR

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

Brazil Cuts Taxes on Production of Several Segments

BRAZIL/SOUTH AMERICA REPORT

Taxes on Industrialized Products (IPI) will be reduced by 25% for most of industrialized goods, in a Governmental effort to boost Industry production. The total impact in federal revenue will be US$ 5 billion in 2022.

Source: M&T     Read The Article

PSR Analysis: This should affect positively sales and profitability in all engine powered segments. However, profitability should be more impacted than volume. Construction Equipment should have the higher impact as well as spare parts.   PSR

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

2022-02-20

Scania Tests Euro VI Engine in Brazil

SOUTH AMERICA REPORT

The 13 liters with Scania Twin SCR aftertreatment developed in Sweden is tested in Brazil for the new Proconve P8 products, already in place for new models and mandatory for all models by January 2023. The homologation process at IBAMA is already advanced but may show adaption needs to Brazilian environment. This engine is part of a completely new powertrain and brakes system with higher efficiency and lower emission. The power range vary from 420 to 560 hp and it is prepared for HVO use.

Source: Automotive Business     Read The Article

PSR Analysis: The use of edge technology at Scania Trucks in Brazil is in line with the amount of exports Scania makes to Europe and to lower emission regions. The higher efficiency will bring increased sales to South America as fleet owners seek lower fuel consumption. PSR

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