Sales of fully electric and hybrid cars in Brazil are projected to surpass those of vehicles with traditional combustion engines by 2030, according to a study published Friday by the National Association of Motor Vehicle Manufacturers (Anfavea). The study, conducted by the Boston Consulting Group, estimates that electric and hybrid vehicles could account for more than 90% of the domestic automotive market by 2040, a significant increase from 7% today.
Brazil, the world’s eighth-largest auto producer and sixth-largest vehicle market by domestic sales, is aligning with global trends toward greener transportation. This shift is driven by growing consumer demand for more sustainable options, along with efforts to reduce carbon emissions in the automotive sector.
Chinese automakers BYD and GWM have established themselves as key players in the electric vehicle market in Brazil. Although they currently import electric cars, both companies have announced plans to start manufacturing locally. This move reinforces its presence in Brazil, surpassing American and European competitors that are just beginning to introduce hybrid-flex vehicles in the country. General Motors and Stellantis, for example, are focusing on models that can run on both ethanol and gasoline, along with electric batteries.
Brazil’s unique reliance on ethanol as a renewable fuel source will likely play an important role in its hybrid car market. As the country continues to embrace electrification, the combination of electric vehicles and alternative fuels like ethanol positions Brazil to become a major player in the global transition to greener transportation.
