Report

PSA Autos: Fuel Cell Electric Trucks – A Silent Evolution

Whereas hydrogen fuel cell systems have not had a break-through in the passenger car market, the situation for the commercial vehicle market looks very different: For heavy-duty trucks in particular, FCVs are superior to BEVs when it comes to charging times, payload and driving range. In this report, analyst Julie Boote assesses the outlook for hydrogen fuel cell trucks and explains how the main global participants are positioned.
Underlyings
10x Genomics Inc Class A

1933 Industries

Friday Night is a development stage company engaged in the business of acquiring and exploring mineral properties with a view to developing mineable deposits of precious and base metals.

Air Liquide SA

L'Air Liquide is engaged in the market of gases for industry, health and the environment. Oxygen, nitrogen, hydrogen, and rare gases make up Co.'s core activities. Co. structures its activities in three segments: Gas and Services, Engineering and Technology, and Other activities. The Gas and Services segment comprises four business lines: Industrial Merchant, Large Industries, Healthcare and Electronics; Engineering and Technology designs, develops and builds industrial gas production plants for Co. and third parties; and the Other Activities segment develops welding and cutting edge technologies, and markets deep-sea diving and swimming equipment to professionals and privates individuals.

Ballard Power Systems Inc.

BEIJING SINOHYTEC CO LTD

Beiqi Foton Motor (A)

Beiqi Foton Motor is engaged in the manufacture and sale of automobiles (excluding sedan), agricultural vehicles and machinery, motorcycles, tractors and fittings, bicycles, building materials, molds, stamping parts, generators, plastic machinery and products, granite components, and mechanical and electrical equipment; sale of steel, wood, hardware and steel structure; technical development, transfer, consultation, training and services; interior and exterior design and decoration; import and export businesses; marketing planning and consultation, and product promotion services; and provision of internet information services.

Chevron Corporation

Chevron is engaged in energy and chemicals operations. Upstream operations consist primarily of, among others, exploring for, developing and producing crude oil and natural gas; processing, liquefaction, transportation and regasification associated with liquefied natural gas, storage and marketing of natural gas; and a gas-to-liquids plant. Downstream operations consist primarily of, among others, refining crude oil into petroleum products; marketing of crude oil and refined products; and manufacturing and marketing of commodity petrochemicals, plastics for industrial uses and fuel and lubricant additives.

China Petroleum & Chemical Corporation Class A

China Petroleum & Chemical is an energy and chemical company. Through its subsidiaries, Co. is engaged in oil and gas and chemical operations in the People's Republic of China. The oil and gas operations consist of exploring for, developing and producing crude oil and natural gas; transporting crude oil and natural gas by pipelines; refining crude oil into finished petroleum products; and marketing crude oil, natural gas and refined petroleum products. The chemical operations include the manufacture and marketing of chemicals for industrial use. As of Dec 31 2012, Co.'s proved reserves for crude oil and natural gas were 2,843,000,000 barrels and 6,730,000,000,000 cubic feet, respectively.

Cosmo Energy Holdings Co. Ltd.

Cosmo Energy Holdings is an integrated oil business group based in Japan. Co.'s operations are organized along four operating divisions: Oil Exploration and Production segment is engaged in exploration and production of oil through three oil fields located in Abu Dhabi and Qatar; Petroleum segment operates three refineries and production of petroleum based products; Petrochemical segment is involved in development and production of petrochemical products such as para-xylene (PX) and mixed xylene (MX) for polyester fiber and polyethylene terephthalate (PET) bottles; and Other Businesses segment is predominately engaged in wind power generation and wind power generation facilities.

Cosmo Pharmaceuticals NV

Cosmo Pharmaceuticals N.V. is a specialty pharmaceutical company. The Company develops therapies for gastrointestinal disorders. The Company's clinical development pipeline specifically addresses treatments for inflammatory bowel diseases, colorectal cancer diagnosis and colonoscopy. It has developed a medical device for polyp excision and is developing a product for the detection of colon cancer. Its pipeline includes Lialda/Mezavant/Mesavancol, which is indicated for mild to moderate ulcerative colitis; Uceris/Cortiment, which is indicated for mild to moderate ulcerative colitis; Zacol NMX, which is indicated for intestinal disorders; Rifamycin SV MMX, which is indicated for Travelers' Diarrhea and uncomplicated diverticulitis, among others; CB-17-01, which is indicated for chromoendoscopy for colorectal cancer prevention in surveillance patients; CB-17-04, which is a sub mucosal injectable composition, and CB-01-12, which is an antibody anti-tumor necrosis factor (TNF) alpha drug.

Cummins Inc.

Cummins is a diesel engine manufacturer. The company's segments include: Engine, which manufactures and markets a range of diesel and natural gas powered engines; Distribution, which is the company's primary sales, service, and support channel; Components, which supplies aftertreatment systems, turbochargers, transmissions, filtration products, electronics and fuel systems for commercial diesel and natural gas applications; Power Systems, which includes power generation, industrial, and generator technologies product lines; and New Power, which designs, manufactures, sells and supports electrified power systems ranging from fully electric to hybrid, along with components and subsystems.

Daimler AG

Daimler provides a range of transportation products, including passenger cars and commercial vehicles, and also financial services. Co. operates in five segments. Mercedes-Benz Cars sells passenger cars and off-road vehicles under the Mercedes-Benz brand and small cars under the smart brand. The Daimler Trucks distributes its trucks (Mercedes-Benz, Freightliner, FUSO, Western Star, Thomas Built Buses and BharatBenz). The vans of the Mercedes-Benz Vans segment are sold under the brand name Mercedes-Benz and Freightliner. Daimler Buses sells completely built-up buses (Mercedes-Benz and Setra). The Daimler Financial Services division supports sales of Co.'s automotive brands.

Dongfeng Automobile Co. Ltd. A

Dongfeng Automobile is engaged in the development, design, manufacture and sale of automobiles, automotive engines, spare parts, foundry goods and other automobile-related products; machine-finishing; repair of motor vehicles; as well as provision of technology consultation services. Through its subsidiaries, Co. is also engaged in the manufacture and sale of special-purpose vehicles, automobile spare parts and diesel engines; provision of storage and transportation service for automobiles and spare parts; and investment and financial management.

Dongfeng Motor Group Co. Ltd. Class H

Dongfeng Motor Group and its subsidiaries are engaged in the manufacture and sale of commercial vehicles, passenger vehicles, automotive engines and parts; and the production of vehicle manufacturing equipment. Co. is also engaged in the import and export of vehicles and equipment and other automotive-related businesses such as finance, insurance agency and used car trading. Co.'s principal products include commercial vehicles (trucks, buses and engines, auto parts and vehicle manufacturing equipment of commercial vehicles) and passenger vehicles (sedans, multi purpose vehicles, sport utility vehicles and engines, auto parts and vehicle manufacturing equipment of passenger vehicles).

Exxon Mobil Corporation

Exxon Mobil operates or markets products in United States and other countries through its divisions and affiliated companies. The company's business involves exploration for, and production of, crude oil and natural gas and manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and other products. In United States, the company's development activities are focused on the onshore United States, in the Permian Basin of West Texas and New Mexico and the Bakken oil play in North Dakota. Gas development activities are also focused on the Marcellus Shale of Pennsylvania and West Virginia, the Utica Shale of Ohio and the Haynesville Shale of East Texas and Louisiana.

Faurecia SA

Faurecia is an automobile equipment supplier based in France. Co.'s activities can be divided into four business units: Automotive Seating (design of vehicle seats, manufacture of seating frames and adjustment mechanisms, and assembly of complete seating units); Emissions Control Technologies (design and manufacture of exhaust systems); Interior Systems (design and manufacture of instrument panels, door panels and modules, and acoustic components); and Automotive Exteriors (design and manufacture of front ends and safety modules). Some of Co.'s customers are PSA Peugeot Citroen, VW Group, Renault-Nissan, Ford Group, BMW and GM Group.

General Motors Company

General Motors designs, builds and sells trucks, crossovers, cars and automobile parts. The company also provides automotive financing services through its subsidiary, General Motors Financial Company, Inc. (GM Financial). GM Financial provides retail loan and lease lending across the credit spectrum. GM Financial provides commercial lending products to dealers including new and used vehicle inventory floorplan financing and dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, and to purchase and/or finance dealership real estate. Other commercial lending products include financing for parts and accessories, dealer fleets and storage centers.

Hino Motors Ltd.

Hino Motors is a manufacturer of large, medium-duty, and light-duty trucks, buses and passenger vehicles. Co. is engaged in the design, development, manufacture and sale as well as the provision of services of diesel trucks, buses, special-purpose vehicles, industrial and marine diesel engines and spare parts. Co.'s truck models include light-duty truck "HINO Dutro," light-duty/medium-duty truck "HINO Ranger" and heavy-duty truck "HINO Profia." Co's bus models include "Hino Rainbow"and "Hino Liesse." Co. also manufactures passenger vehicles, commissioned from Toyota Motor Corp., including the sport-utility vehicles and commercial vehicles.

Honda Motor Co. Ltd.

Honda Motor is the parent company of a group mainly develop, manufacture and distribute motorcycles, automobiles, power products, and also provide financing for the sale of those products. Principal manufacturing facilities are located in Japan, the United States of America, Canada, Mexico, the United Kingdom, Turkey, China, India, Indonesia, Malaysia, Thailand, Vietnam, Argentina, and Brazil. Co.'s principal business segments are motorcycles, automobiles, financial services, and power products & other business. Co.'s principal automobile products include passenger cars such as "Legend," "Accord," "Inspire," "Civic," "Insight," "City," "Acura RL," "Acura TL," "Acura TSX," and "Acura CSX".

Isuzu Motors Limited

Isuzu Motors is engaged in the manufacture and sale of automobiles. Co. manufactures heavy/medium/light-duty trucks, buses, passenger vehicle engines and industrial-use diesel engines. Co.'s principal products include commercial vehicles including light, medium and heavy-duty trucks and buses; passenger cars including sport utility vehicles and pickup trucks under the name of "Isuzu D-MAX," "Isuzu mu-X" and "Panther;" diesel engines for construction machinery, freezer units and generators; diesel engines for passenger vehicles; and marine engines for commercial boats. In addition, Co.'s subsidiary provides commercial vehicle leasing and maintenance services.

IVECO GROUP

Iwatani Corporation

Iwatani and its affiliates are mainly engaged in the import, export and sale of energy and household products, industrial gases, materials and electronics, as well as housing and building materials. Co.'s principal products include LPG, LPG-supply equipment and facilities, LNG, petroleum products, household kitchen appliances, home energy components, air-separation gases, hydrogen, helium, other specialty gases, gas-supply facilities, stainless steel, non-ferrous metals, frozen vegetables and fruits, health foods, livestock-related products, agri-bio related goods, and others.

Linde plc

Schaeffler AG

Stellantis N.V.

Tata Motors Limited

Tata Motors is an automobile company, engaged in the manufacture and sale of commercial and passenger vehicles primarily in India. Co. provides cars, utility vehicles, trucks, buses, and defense vehicles, as well as develops electric and hybrid vehicles for personal and public transportation. In addition, Co. is engaged in the provision of engineering and automotive applications, as well as machine tools and factory automation applications; construction equipment manufacturing; automotive vehicle components manufacturing, among others. Co. markets its vehicles in Europe, Africa, the Middle East, South East Asia, South Asia, and South America.

Tesla Inc

Tesla designs, develops, manufactures, sells and leases electric vehicles and energy generation and storage systems, and provides services related to its products. The company operates as two reportable segments: automotive, which includes the design, development, manufacturing, sales, and leasing of electric vehicles as well as sales of automotive regulatory credits; and energy generation and storage, which includes the design, manufacture, installation, sales, and leasing of solar energy generation and energy storage products, services related to such products, and sales of solar energy system incentives.

Total SE

Toyoda Gosei Company Limited

Toyota Motor Corp.

Toyota Motor is an automobile manufacturer. Co. is primarily engaged in the design, manufacture, and sale of sedans, minivans, compact cars, sport-utility vehicles, trucks and related parts and accessories throughout the world. Co. provides financing, vehicle and equipment leasing and certain other financial services primarily to its dealers and their customers to support the sales of vehicles and other products manufactured by Co. Co.'s principal business segments are automotive operations, financial services operations and other operations. Co. sells its vehicles in approximately 190 countries and regions, and markets for its automobiles in Japan, North America, Europe and Asia.

Provider
Pelham Smithers Associates Ltd
Pelham Smithers Associates Ltd

Founded in 2009, Pelham Smithers Associates (PSA) provides market intelligence on Asian technology, focusing in particular on Japan. The industries covered by our team of specialists are: consumer electronics, telecomms, pharmaceuticals, internet, electronic parts and materials, automotive technology, retail and capital goods. 

PSA produces both company and sector reports. The focus of PSA’s research is to identify winners and losers as new technologies impact the top and bottom lines of corporations. Critical to our research is the clear explanation of how these new technologies work and how they impact companies and industries. 

The founding partners have worked closely together for twenty years and the team has more than doubled in size since 2012. 

Analysts
Julie Boote

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