Agreement between Cummins and Kamaz
On September 20, Cummins (CMI) entered into an agreement with Kamaz. Cummins, an engine manufacturer, has agreed to develop electrified power solutions for Kamaz’s battery-powered vehicles. Kamaz is a Russian manufacturer of Kamaz brand trucks and engines. The two companies are partnering to create electrified-power trucks and buses.
Cummins plans to develop and supply Kamaz with high-voltage fully electric powertrain prototypes with applications for medium-range trucks and city buses. The medium-range trucks will be used for last-mile deliveries, which are crucial in the logistics chain. Cummins will also develop and supply a hybrid transmission prototype designed for Kamaz’s heavy-duty trucks.
Kamaz’s electrified vehicles portfolio
Kamaz is developing a new electrified portfolio of battery-powered trucks and buses. Cummins intends to expand its powertrain portfolio by developing electric power systems for commercial applications. It plans to develop fully electric and hybrid power systems.
The prototypes developed by Cummins will be tested on Kamaz city buses, medium-range delivery trucks, and heavy-duty trucks. After successful tests, both companies will assess the potential market size in the product segments.
Cummins and Kamaz will then evaluate the scope of their further cooperation. The Cummins-KAMA 50/50 joint venture has been manufacturing Cummins ISB series engines since 2006 and ISL series engines since 2017.
Cummins manufactures, designs, and distributes a wide array of power solutions. Its products range from diesel and natural gas engines to hybrid and electric platforms. The Industrial Select Sector SPDR ETF (XLI) has a 0.96% weight in Cummins. Major industrial giants included in XLI’s portfolio are Boeing (BA) at 8.4%, 3M (MMM) at 5.26%, and Honeywell International (HON) at 5.17%.
In the next part, we’ll look at the United States Department of Defense’s $491 million contract with Cummins.