Electric and hybrid cars to become market leaders in Brazil by 2030 By Investing.com

A recent study by Anfavea, the Brazilian automobile manufacturers association, predicts a significant change in the country’s automobile market. Accordingly, sales of purely electric and hybrid vehicles are expected to exceed those of internal combustion engines by 2030. This trend underscores the increasing adoption of greener and more sustainable transportation options in Brazil, which ranks as the world’s eighth-largest automobile producer and sixth-largest domestic market by sales.

The study, conducted by Boston Consulting Group and commissioned by Anfavea, predicts that by 2040, electric and hybrid cars could account for more than 90% of the domestic market in Brazil. This represents a significant increase from the current market share of 7%. These forecasts highlight the rapid evolution of the Brazilian automotive market towards electrification over the next two decades.

Chinese automakers BYD and GWM, which currently import electric cars to Brazil, are key players in the local electrified vehicle market. Both companies have announced plans to set up manufacturing facilities in the country, which is expected to further accelerate the growth of the electric vehicle (EV) sector.

In contrast, traditional US and European automakers have been somewhat slower to adapt to the evolving EV market in Brazil. However, companies such as General Motors (NYSE:) and Stellantis have expressed their intention to bring hybrid flex vehicles to the Brazilian market. These vehicles can run on 100% ethanol or gasoline as well as battery power, providing a transition technology to full electrification.

The shift towards electric and hybrid vehicles in Brazil is in line with the global trend towards greater environmental awareness and the desire to reduce greenhouse gas emissions. As the Brazilian market adapts, the automotive industry landscape will change significantly, with new technologies and players emerging to meet the demand for sustainable transportation solutions.

Reuters contributed to this article.

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