PSA Auto: 48-Volt Mild Hybrids – Death Blow to Diesel, and Threat to Toyota (7203)

Automakers are facing a predicament, mainly in Europe, the US and China: while emission regulations are getting stricter, there is no guarantee that EV / PHEV sales will rise quickly enough for automakers to achieve their CO2 targets between 2021 and 2025. Worse, in Europe, the diesel solution (low CO2 levels) seems questionable now, being out of favour among consumers and governments.
However, a new solution – the new 48-volt mild hybrid – is on the horizon, allowing for a successful balancing act between selling cars that drivers want and can afford, and meeting stringent emission targets. Hailed as the perfect solution by its proponents, this technology seems to tick all the right boxes: they make diesel and petrol cars more fuel efficient, while at the same time providing power boost – all at comparably low additional costs. In addition, they are simple, and their package is easily integrated into existing models.
Key Points:

• The various degrees of electrification – ‘electrified’ does not necessarily mean ‘electric’.
• Key functions of the 48-volt system explained
• Suppliers and OEMS: First systems on the market
• EV / PHEV diffusion rate targets
• We believe that the days of diesel cars are numbered – and that this process will be accelerated by advances of new mild hybrids.
• While most Japanese automakers would benefit from integrating this technology into their model line-up, helping to achieve their emission targets, we discuss why Toyota (7203) might lose out.