Affordability is the key to making EVs popular in Brazil

Apr 24, 2024 12:23 6 min read (Updated: Apr 24, 2024 12:24)

The International Energy Agency (IEA) this week released its Global EV Outlook, highlighting how most of the electric vehicle market growth has been driven by China. Not only was the country the destiny of 60 percent of all EVs sold last year — against 35 percent in Europe and the U.S. combined — but its manufacturers are boosting the market export numbers, especially in emerging economies of Southeast Asia and Latin America. 

In Brazil, EVs now have a 3 percent market share, thanks to cheaper models from Chinese brands such as BYD and Great Wall Motors (GWM), which account for about 35 percent of all imported EVs in the country. 

If in 2023, 18 percent (nearly 14 million) of all cars sold were electrified, in 2024 the IEA expects around 17 million EVs to be sold, meaning one in five cars will be electric or hybrid. This growth is happening despite the tight margins, the volatile prices of battery metals, and the end of tax subsidies in some countries, driven by climate goals set by most nations and manufacturers. 

According to the IEA, over 20 major car brands, representing more than 90 percent of global car sales in 2023, have set electrification targets. "Taking the targets of all the largest automakers together, more than 40 million electric cars could be sold in 2030, which would meet the level of deployment projected under today's policy settings," says the report.

In Brazil, automakers have been announcing new investment cycles since mid-2023 aimed at not only launching new models with internal combustion engines but also developing and producing electric and hybrid vehicles. In total, the auto industry plans to invest more than BRL 80 billion over the next decade. 

These announcements follow the new phase of Mover, the...