Electric Vehicles - Brazil | Statista Market Forecast

In 2024, it is projected that the Electric Vehicles market in Brazil will generate a revenue of US$5.4bn.
Looking ahead, the market is expected to experience a compound annual growth rate (CAGR) of 5.10% from 2024 to 2029, resulting in a projected market volume of US$6.9bn by 2029.
By 2029, it is estimated that unit sales in the Electric Vehicles market will reach 70.47k vehicles.
The volume weighted average price of Electric Vehicles market in Brazil is expected to be US$103.7k in 2024.
When considering the global perspective, it is evident that China will generate the highest revenue in the Electric Vehicles market, with a projected revenue of US$376bn in 2024.
Despite limited infrastructure and high import taxes, Brazil is experiencing a growing demand for electric vehicles due to increasing environmental awareness and government incentives.

CO2 emissions exert a profound influence on climate and the environment, fueling the greenhouse effect and contributing significantly to global climate change. Nearly one-fourth of these emissions worldwide can be attributed to the transportation sector. Electric vehicles (EVs) emerge as a promising solution, potentially acting as a carbon-neutral alternative when powered by renewable energy sources. This underscores their pivotal role in mitigating the impact of traditional combustion engine vehicles on the environment.

The Electric Vehicles market includes information about electric vehicles in countries where, according to our sources, a public electric vehicle charging infrastructure is already available. In this context, “public” means that people have unrestricted access to the charging infrastructure. A vehicle can be defined as electric if it is self-contained with a battery or classified as a plug-in hybrid. All key figures shown represent the sales of new cars, and their basic configuration in the respective year. The figures do not include the sale of used vehicles nor adapted equipment for the new cars sold. The prices and revenues shown are accordingly based on the basic models.

The Electric Vehicle market is divided into distinct two distinct markets, namely Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). This categorization allows for a nuanced understanding of the market dynamics, considering the specific attributes and market penetration of each electric vehicle type. The emphasis on new car sales and their foundational configurations ensures clarity, while the exclusion of used vehicles and customizations maintains focus on the evolving landscape of electric vehicles.

Battery electric vehicles (BEVs)
Plug-in hybrid electric vehicles (PHEVs)
Road electric vehicles
Passenger Cars

Electric vehicles that are not self-contained and cannot be classified as BEVs or PHEVs
Rail electric vehicles
Surface and underwater vessels
Electric aircraft or spacecraft
Motorcycles, scooters, mopeds, buses, vans, and trucks

The Electric Vehicles market in Brazil is experiencing significant growth and development.

Customer preferences: Customers in Brazil are increasingly showing a preference for electric vehicles due to their environmental benefits and cost savings. Electric vehicles are seen as a more sustainable and eco-friendly alternative to traditional gasoline-powered cars. Additionally, the lower operating costs of electric vehicles, including lower fuel and maintenance costs, are appealing to consumers in Brazil.

Trends in the market: One of the key trends in the Electric Vehicles market in Brazil is the increasing availability and variety of electric vehicle models. As more automakers introduce electric models to the Brazilian market, consumers have a wider range of options to choose from. This is driving competition among automakers and leading to more affordable electric vehicle options for consumers. Another trend in the market is the development of charging infrastructure. In order to support the growing number of electric vehicles on the road, Brazil is investing in the expansion of charging stations across the country. This infrastructure development is crucial for the widespread adoption of electric vehicles, as it addresses concerns about range anxiety and accessibility.

Local special circumstances: Brazil has a unique set of circumstances that contribute to the development of the Electric Vehicles market. One of the key factors is the country's abundant renewable energy resources. Brazil is known for its significant hydropower generation, which provides a clean and sustainable source of electricity to power electric vehicles. This renewable energy advantage makes electric vehicles an even more attractive option for consumers in Brazil. Additionally, Brazil has a strong automotive industry, which is well-positioned to support the development and production of electric vehicles. The country has a skilled workforce and a robust supply chain, which can contribute to the growth of the electric vehicle market. The presence of local automakers and suppliers also helps to drive competition and innovation in the market.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the development of the Electric Vehicles market in Brazil. One of the key factors is government support and incentives. The Brazilian government has implemented policies to promote the adoption of electric vehicles, including tax incentives and subsidies. These incentives make electric vehicles more affordable for consumers and encourage their uptake. Another factor is the increasing focus on sustainability and reducing carbon emissions. Brazil, like many other countries, is committed to reducing its carbon footprint and transitioning to a greener economy. Electric vehicles play a crucial role in achieving these environmental goals, and the government's support reflects this commitment. Furthermore, Brazil's growing middle class and rising disposable incomes are also driving the demand for electric vehicles. As more consumers have the means to purchase and maintain electric vehicles, the market is expected to continue to grow. In conclusion, the Electric Vehicles market in Brazil is experiencing growth and development due to customer preferences for sustainable and cost-effective transportation options, as well as the availability of a wider range of electric vehicle models and the development of charging infrastructure. Brazil's unique circumstances, including its abundant renewable energy resources and strong automotive industry, are contributing to the market's growth. Additionally, government support and incentives, along with the increasing focus on sustainability, are driving the adoption of electric vehicles in Brazil.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

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For the first time in the past decade, lithium-ion battery pack costs increased in 2022 due to the raw material and battery component soaring price inflation. However, this increase in production cost has not slowed down the global electric vehicle (EV)market. Electric vehicle sales have increased tremendously over the past decade.