Electric and Hybrid Car Sales in Brazil

SAO PAULO (Reuters) – Sales of new fully electric or hybrid cars in Brazil are projected to exceed those of combustion engine vehicles by 2030, according to a study from the automakers association Anfavea released on Friday.

Why It’s Important

Brazil ranks as the world’s eighth-largest car producer and the sixth-largest domestic market in terms of sales, based on data from Anfavea utilizing 2022 figures collected both locally and from the International Organization of Motor Vehicle Manufacturers.

By The Numbers

A study conducted by the Boston Consulting Group, commissioned by Anfavea, forecasts that sales of new fully electric or hybrid cars could account for over 90% of Brazil’s domestic market by 2040, increasing from the current 7%.

Additional Context

Chinese manufacturers BYD (SZ:002594) and GWM, now importing electric vehicles to Brazil, are key players in the local electrified car sector and have announced plans to initiate manufacturing within the country. Traditional U.S. and European automakers are trailing their Chinese competitors in the local EV market. However, companies like General Motors (NYSE:GM) and Stellantis (NYSE:STLA) have revealed plans to introduce hybrid-flex vehicles in Brazil, which can operate on either 100% ethanol or gasoline in combination with batteries.