Italy’s CNH and China’s FAW in Talks Over Truck Maker Iveco

News: Greater China

2021-01-25

Italy’s CNH and China’s FAW in Talks Over Truck Maker Iveco

CNH Industrial is in talks with China’s FAW over the future of truck maker Iveco, the Italian-American group said recently after sources told Reuters it had revived previously aborted negotiations.

Source: Reuters    Read The Article

PSR Analysis: Another positive development in the industry during such a gloomy crisis, FAW fits the merger success story I just mentioned about the few surviving companies.  There are for sure many challenges ahead with the acquisition, particularly after the take-over, but there are so much to celebrate if the deal can be finalized.

Both Europe and China are investing in each other’s market, Scania, MAN, Daimler and Volvo are all setting up new factories or strengthening ties with current partners in China. 

And now we see FAW is putting their focus in the European market by engaging with Iveco.  Both sides have seen potential growth on one another’s market.  European truck makers will bring along new concept and technology to China’s market and likes of FAW will bring along cost saving and localization practices for its European counterparts

This is another sign that Chinese companies are moving more and more of their focus on the overseas markets, we will only see more of this coming in the future.  PSR

Qin Fen is Business Development Manager-China for Power Systems Research

VW To Build $3 Billion EV Plant in East China

Jack Hao
Jack Hao

VW China has increased its share in the electric vehicle joint venture JAC Volkswagen to 75% and obtained joint venture management rights. At the same time, it has obtained a 26% stake in the EV battery maker Gotion High-Tech to support the future electrification of the group. The total investment of the above two projects is estimated to be about €2 billion.

The plant, which has an estimated investment of US$3.06 billion (20 billion yuan) from both Volkswagen and JAC Motors, will be finished by the end of 2022, and its first vehicle will roll off the assembly line in 2023.

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2020-10-28

Tesla Cuts Prices of China-Made Cars

Jack Hao
Jack Hao

Taking advantage of new battery options and big government subsidies, Tesla has slashed its Model 3 prices in China. The company’s Chinese website is now advertising a base price for the popular battery-electric sedan of 249,900 yuan, or roughly $36,800.

While this is big news for the company in its efforts to remain dominant in the Chinese market, U.S. consumers won’t be affected…at least, not yet

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2020-08-23

Doosan Sells 10,000 Excavators in China in H1 2020

Doosan Infracore announced that it sold 10,728 hydraulic excavators in China in H1 2020. This is the company’s largest sales volume in nine years since it sold more than 12,000 units in the market in H1 2011. The company sold 1,320 excavators in June, a 23% increase in sales over the previous year.

Akihiro Komuro
Akihito Komuro

China’s hydraulic excavator market suffered a slowdown in the first two months of the year due to COVID-19 but is now consistently showing signs of a rapid recovery. Overall sales in the Chinese hydraulic excavator market exceeded 155,000 units in H1 2020, significantly exceeding the 125,000 units sold nationwide in H1 2019.

Source: Kikai-News (The original article was partially revised by the author.)

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How Does Market Brace for Low Speed EV Impact?

By August 12, after 20 days of product launch, SGMW’s MINI EV will hit a sales record of 15,000 vehicles, making it the world’s fastest car model reaching the threshold of 10,000 units.

Source: D1 EV      Read The Article

Qin Fen
Qin Fen

PSR Analysis: Consider BYD’s electric bus, SGMW’s MINI EV, as well as premium car brands like Tesla: These traditional and emerging automotive OEMs are reformulating rules of the auto game, with their own proprietary technology. 

As a matter of fact, it’s not just the automotive market that needs to brace for the impact of electrification, the off-road market also is trending toward electrification.  The changing markets include passenger car, light commercial vehicle, medium and heavy duty vehicle, forklift, and lawn mower. Will this wave continue to expand to other off-road applications?  How much more will it change the rules of the game?     PSR

Qin Fen is Business Development Manager for Power Systems Research

2020-07-26

National Grid Joins Switch-on Mode Team

Qin Fen
Qin Fen

In July, MIIT (Ministry of Industry and Information Technology summoned a meeting with local governments, industry associations and automotive companies on battery switch-on implementation.  People attending offered thoughts on implementing battery switch-on operations, sharing recommendations for policy and discussing challenges of proposed actions.

Source: D1 EV     Read The Article

PSR Analysis: Electric vehicle development is facing several different technology road maps.  While the automotive industry prefers plug-in and charging, grid companies are more inclined to favor the battery switch-on mode based on grid reliability. 

Such debate is good for advancing electrification in the auto industry, it is vital to have all participants’ input before promoting electric vehicles on a larger scale. PSR

Qin Fen is Business Development Manager – China, for Power Systems Research

2020-06-18

Thoughts on Battery Change for New Energy Vehicle, using Big Data

Qin Fen
Qin Fen

The symposium of battery change mode for new energy vehicle was held June 15 in Xuzhou, Jiangsu.  Data from National Big Data Alliance of New Energy Vehicles suggests that over 3 million new energy vehicles were in the system in 2019 and 900,000 vehicles are running daily.  Data also suggest that new energy vehicle GVW range primarily falls under 4.5 tons.

Source: Sohu  Read The Article

PSR Analysis: Many numbers are in the article, some contradictory.  As one of the truck OEMs, XCMG does make some excellent points on the daily use of the battery-powered vehicle, using data collected from end-users, such as working hours, range anxiety and surprisingly, maintenance and downtime.

But I want to point out one potential issue that might travel under the radar: operating cost, more specifically, fuel cost.  For large fleet owners like JD.com Inc. or SF Express, fuel cost might be a key factor in choosing a battery-powered vehicle over ICE-powered vehicle for urban delivery.

There are energy companies already working with large industrial businesses to install wind or solar power onsite to address their electricity bill issue.  Once completed, giant companies like JD or SF Express will significantly cut down their operating expenses on fuel, in this case, electricity.

There is one game changer out there now.  How will ICE-powered light duty trucks compete with battery-powered vehicles, when the latter runs free of charge and free of emission?  What will happen to all the components suppliers for light duty trucks, especially urban delivery trucks?  PSR

Qin Fen Is Business Development Manager in China for Power Systems Research.

Geely Poised to Acquire CAMC

According to a statement from CAMC, a.k.a Hualing Xingma, China automotive manufacturer Geely, will acquire a 15.4% position in the company.

Qin Fen
Qin Fen

Source: CV World    Read The Article

PSR Analysis: A win-win situation for CAMC and Geely.  There are still some legal proceedings to finish, but once it’s done, CAMC will save itself from financial trouble and Geely will add an asset to its commercial vehicle lineup. PSR

Qin Fen Is Business Development Manager for Power Systems Research

2020-04-25

China Delays Nationwide NS 6 Regulation

The Ecology and Environment Ministry is extending the transition period for OEMs and the sales period for NS 5 inventory products.

Source: China Central Television      Read The Article

PSR Analysis:

So here comes the impact of coronavirus for the industry.  But what we should bear in mind is that despite this latest news, the capital metro area, the Yangtze delta area and the Zhujiang River Delta area, three of the most prosperous areas in China, have already implemented NS 6 regulation. 

These regions can’t roll back their policy. If any OEMs not ready to go NS 6, they should do it now.  COVID-19 buys some time, but it won’t be so forever.    PSR

Qin Fen is Business Development Manager

2020-04-08

Coronavirus Has Major Impact on Global Production of Off-Highway Equipment and Medium & Heavy-Duty Vehicles

Download Your PDF Copy of the Presentation

ST. PAUL, MN–A team of international analysts from Power Systems Research (PSR) analyzed the impact of COVID-19 on the global production of Off-Highway Equipment and MH-Duty Vehicles in several regions today.

The team examined the impact of the coronavirus in North America, Europe, Asia, India, and South America for the remainder of 2020 and into Q1 2021.  Download your copy of the presentation here.

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