Electric vehicle sales are growing in Brazil
Expectations have already reached high record.
Electric cars have captured a 4.6% market share of total vehicle sales in Brazil in 2023. This year, market share has already reached around 8%, with plug-in vehicles representing an average of 5%. This indicates that the market has matured rapidly in the country, says Ricardo Bastos, president at the Associação Brasileira do Veículo Elétrico (Brazilian Electric Vehicle Association – ABVE).
by Dilnara Titara
The category in Brazil has shown impressive growth, exceeded expectations and setting sales records. According to ABVE, sales of electric cars are expected to surpass 150,000 units in 2024, with plug-in vehicles, which have external battery charging, leading consumer preferences.
Despite the increase in import taxes for electric and hybrid vehicles announced by the federal government in January this year, there is a clear trend of continuous growth. Experts point out that the adoption of these vehicles is transforming the Brazilian automotive landscape.
Sales record in 2023
The electric car market in Brazil reached a milestone in 2023. Total sales of electrified vehicles reached 93,927 units, setting a record in the historical series of ABVE, as highlighted by Ricardo Bastos. “Our expectation is that in 2024 the volume will surpass 150,000 units, which represents a growth of about 60% compared to the numbers of 2023.”
This growth can be attributed to several factors that go beyond the tax sphere. It includes primarily increased environmental awareness, which has driven demand for electric vehicles, reductions in production costs, and technological advances that have made them more accessible and appealing to consumers.
Incentives and challenges
Since January, the federal government has started taxing the importation of electric and hybrid vehicles, aiming to encourage domestic production. The major challenge is to develop appropriate government policies that facilitate the implementation of technologies compatible with electrified vehicles, such as installing chargers along highways, for example.
There is a need for a friendly and secure regulatory environment for electromobility, spanning all three levels of government: federal, state, and municipal. A national strategy for transitioning to decarbonize transportation is also essential, integrating and harmonizing subnational initiatives.
“Our expectation is that in 2024, the volume will exceed 150,000 units, which represents a growth of about 60% compared to the numbers in 2023.”
The recently approved Mover program in Congress represents a significant first step in this direction, highlighted the association’s president. “It establishes a set of incentives for both the automotive industry and charging infrastructure, promoting the expansion of the electric vehicle market in Brazil.”
Expectations for 2024
Despite fiscal obstacles, automotive industry experts foresee a promising future for electric cars in Brazil. The expectation is that with the increase in charging infrastructure and continued reduction in production costs, electric cars will become even more accessible to the general population. Furthermore, public policies aimed at sustainable mobility and increasing awareness of climate change are expected to further boost sales in the coming years.
According to the association’s estimate, Brazil will have approximately 1 million electric and hybrid cars on the roads by 2030, with a market share around 30%. From January to May of this year, 64,908 light electrified vehicles were sold.
ELETROCAR Show: Support for sustainable mobility growth
Four days of business will be dedicated to supporting the growth of the electric vehicle category. An exclusive area will be set up, serving as a meeting point and ideal setting for companies to showcase trends and sector evolution, as well as conduct business.
The event will provide unique experiences all in one place, featuring electric vehicles available in the Brazilian market. The standout feature of this fair is the opportunity to engage directly with brand representatives and get up close with some models at the ELETROCAR Test Drive Experience. The fair will take place at the New Anhembi District from June 23 to 26, 2025.
Source: Revista Eletrolar News – Edição #161
