Hybrid, electric car sales to outpace rest of the market in Brazil in 2030, study shows

SAO PAULO (Reuters) – The sales of new fully electric or hybrid cars in Brazil are expected to surpass sales of vehicles run on combustion engines in 2030, a study released on Friday by automakers association Anfavea showed.

WHY IT’S IMPORTANT

Brazil is the world’s eighth-largest car producer, and the sixth-largest domestic market by sales, according to data released by Anfavea earlier this year using 2022 numbers collected locally and by the International Organization of Motor Vehicle Manufacturers.

BY THE NUMBERS

The study by the Boston Consulting Group, which Anfavea commissioned, also showed that new fully electric or hybrid car sales could reach over 90% of Brazil’s domestic market in 2040, from the current 7%.

ADDITIONAL CONTEXT

Chinese automakers BYD (SZ:002594) and GWM, which now import electric cars for sale in Brazil, are among the main players of the local electrified car market and have already announced plans to start manufacturing in the country.

Traditional U.S. and European automakers have fallen behind their Chinese rivals in the local EV market, although firms including General Motors (NYSE:GM) and Stellantis (NYSE:STLA) have already unveiled plans to launch hybrid-flex vehicles, which can run on 100% ethanol or gasoline alongside batteries, in Brazil.