Brazil forecast to see more than 150,000 new electric light vehicles in 2024

Brazil is expected to have more than 150,000 new electric light vehicles registered this year, Ricardo Bastos, president of electric vehicle association ABVE, told BNamericas.

In 2023, the country registered 93,297 new electric light vehicles, for a market share of 4.3%. In December, 16,279 were registered, or 7% of the total.

The figures include battery electric vehicles (BEV), plug-in hybrids (PHEV) and hybrids (HEV). 

"The Brazilian market has therefore already reached that symbolic 5% share threshold that indicates the turning point of a new technology," said Bastos, who is also director of institutional and government relations at Great Wall Motor Brasil.

He says he is optimistic, even with the increase in the import tax on electric vehicles that took effect on January 1.

In 2023, China's BYD announced an investment of 3bn reais (US$610mn) to build three electric vehicle factories in the Camaçari complex, 50km from Salvador in northeast state Bahia.

And General Motors has said it will invest 7bn reais in Brazil between 2024 and 2028 in electric vehicles.

"These companies – and many others – have already realized that electromobility is an irreversible phenomenon in Brazil too. Sooner or later, all automakers will have to offer electrified vehicle models in their portfolio," Bastos said.

According to the executive, this market trend is in line with the federal government's objectives of expanding and renewing the automotive industry.

He recalled that one of the goals of Brazil's new industrial policy, launched on January 22, is to make the country a global hub for the development and production of electric and hybrid vehicles by 2030.

"We have all the conditions to achieve this goal. The companies that lead the way will be the first to respond to consumer demand and will be able to benefit from government incentives for low-emission, high-efficiency vehicles manufactured in Brazil," Bastos said.