The Mercosur agreement naturally strengthens the potential competitiveness of Kempower and other European companies in South America. Many Chinese automakers, among others, operate in South America, and it’s likely that Asian competition will also be encountered in the charging sector. Therefore, I consider it likely that price competition in the region will be intense, even though the new trade agreement in principle strengthens the position of European manufacturers.
So far, the South American market has been the responsibility of Kempower’s US office. However, this does not rule out deliveries from Europe, as has been the case at least partially with Canada.
However, I do not expect the agreement to have significant short-term effects on Kempower’s order development. Kempower’s operations in South America have been non-existent, and it is uncertain whether the company will seriously start competing for this market—and if so, when. It should also be noted that the electrification of transport in South America is clearly lagging behind Western markets and Asia, meaning the market is currently small.