The recent analysis from Frost & Sullivan “Strategic Analysis of the Latin American Powertrain Market” covers the small, medium, high-end, van and pickup vehicle segments and considers powertrains that run on gasoline, diesel, flex fuel, and CNG/LPG/bi-fuel.
Countries across the region have powertrain markets of varied structure. In Brazil, flex-fuel-engine and manual-transmission vehicles contribute to a major proportion of overall sales. In contrast, gasoline dominates the markets in Argentina, Colombia and Chile, where diesel too is rising in popularity. These trends, along with Paraguay’s diesel-led market and Argentina’s and Venezuela’s widespread participation in compressed natural gas conversion have intensified the diversity of the Latin American passenger vehicle powertrain space.
“Key regulations specifying emission limits are reshaping the way in which the LATAM markets react to demand for powertrains,” said Frost & Sullivan Automotive & Transportation Industry Analyst Yeswant Abhimanyu. “Most countries in the region that lag behind the emissions standards prevalent in the United States and Europe will implement Euro 5 norms by 2020 and thus require powertrain technologies that comply with these regulations.”
In addition to emissions guidelines, fuel economy and energy efficiency targets that have been set or are being discussed in several LATAM countries, will aid market development.
“Robust global strategies are crucial to tackle the high cost of powertrain technologies and achieve economies of scale so that more fuel-efficient technologies could be made available to a larger customer base,” noted Abhimanyu. “Powertrain OEMs must tailor their strategies to each LATAM market to taste maximum success.”
Source: Frost & Sullivan.