News

2024-07-15

EU Tariffs Hit Chinese EVs, Draw Stern Words from Beijing

The European Commission told automakers (July 11, 2024) it would impose extra duties of up to 38.1% on imported Chinese electric cars starting in July 2024, risking retaliation from Beijing, which called the move protectionist. Less than a month after Washington announced plans to quadruple duties for Chinese EVs to 100%, Brussels said it would set additional tariffs ranging from 17.4% for BYD to 38.1% for SAIC, on top of the standard 10% car duty. It said this was to combat excessive subsidies

it’s worth noting that commercial EV sales are soaring.  PSR

Source: Reuters (via MSN): Read The Article

PSR Analysis: On the face of it, this seems like the start of a trade war with Chinese automakers demanding retaliatory tariffs on European cars, however several EU member states have already started to back track (led by Germany) so it remains to be seen as to what the eventual outcome will be.  

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

Research Offers Efficient Lithium Production

As the electric vehicle market booms, the demand for lithium has also soared, with global lithium production more than tripling in the last decade. Current methods of extracting lithium from rock ores or brines are slow and come with high energy demands and environmental costs. They also require sources of lithium which are incredibly concentrated to begin with and are only found in a few countries.

Researchers at the University of Chicago Pritzker School of Molecular Engineering (PME) have optimized a new method for extracting lithium from more dilute (and widespread) sources of lithium, including seawater, groundwater, and “flowback water” left behind from fracking and offshore oil drilling.

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EV Sales Headed for Long-Term Growth

ALTERNATIVE POWER REPORT

The short-term picture for EV growth is mixed, but long-term prospects look good. EV sales will continue to grow despite the mixed near-term outlook, according to BloombergNEF’s Long-Term Electric Vehicle Outlook (EVO) which indicates that rapidly falling battery prices, advancements in next-gen battery technology, and improving relative economics of EVs with ICE counterparts continue to underpin long-term EV growth globally.

Global passenger EV sales are expected to continue to grow, but at a slower pace in the next few years.

Source: Electrek: Read The Article

PSR Analysis: We have seen articles incorrectly claiming that the EV market is in decline, so it’s a welcome article that lays out clearly why the market is expected to slow but not decline while ICE engines peaked in 2017 and have started a long term decline. PSR

Guy Youngs is Forecast & Adoption Lead at Power Systems Research

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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Electric and Hybrid Marine Exhibition Demonstrates New Technologies

EUROPE REPORT 
Natasa Mulahalilovic
Natasa Mulahalilovic

Amsterdam–The Tenth Annual Electric and Hybrid Marine Exhibition in Amsterdam’s RAI June 18-20 attracted more than 200 exhibitors and provided an opportunity for shipowners and operators to review the latest solutions to speed marine electrification, decarbonization, hybridization.

Reaching the objective to reduce greenhouse gas by 70% in maritime industry by 2050 looks realistic but the new technologies developers, equipment manufacturers and end users need more clarity and support from the regulatory and governmental bodies to accelerate the process. Creation of reliable and safe storage and fueling infrastructure will ensure the shipbuilders and ship owners trust the transition.

The three-day event presented the latest innovations and achievements in efficient decarbonization of the maritime industry. New technologies from companies in Europe, North America, China and other regions designed to support and accelerate the transition from high polluting fossil combustion to zero emission solutions in maritime industry were exhibited at the event. The exhibition was visited by thousands of industry professionals.

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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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Frasle Mobility To Buy Mexican Kuo’s Dacomsa for $389 Million

Fabio Ferraresi
Fabio Ferraresi

Brazilian auto parts producer Frasle Mobility said (July 8, 2024) it has agreed to buy Mexican auto spare parts distributor Dacomsa from Mexico’s Grupo Kuo S.A.B de C.V. for 2.1 billion reais ($389.5 million).

With the deal, Frasle Mobility, formerly known as Fras-le, said it would also acquire the Dacomsa-owned Kuo Motor and Fritec firms, as well as some tangible and intangibles assets related to those companies, according to a securities filing.

Frasle Mobility also expects to earn some 300 million reais with synergies to be generated from the deal – as measured by earnings before interest, taxes, depreciation and amortization (EBITDA) – in a five-year period, a presentation by the firm showed.

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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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