Why electric car sales are expected to continue climbing in Brazil

The number of electric vehicles sold in Brazil between January and November 2021 surpassed 30,000 units, some 50% more than sales for the whole of 2020, according to data from Brazilian electric vehicle association ABVE. 

Carlos Gabriel Bianchin, a researcher at the Lactec science and technology center in Paraná state, believes sales of electric vehicles in the country should continue to grow in the coming years, since automakers are in a race to reduce production costs. 

BNamericas spoke with Bianchin about the outlook for the electric car market in Brazil and the research projects developed by Lactec in partnership with local companies.

BNamericas: Have you noticed greater interest of the market and society in electric mobility in Brazil?

Bianchin: I believe so, because there's a growing environmental awareness with a greater search for reducing emissions of gases. Year after year we've seen growth in the electric car fleet in Brazil. 

BNamericas: How soon can the price of an electric car match that of a normal fossil fuel-powered car, if ever?

Bianchin: The battery is the big problem. The initial investment in an electric car with a range of 300-350km is close to 200,000 reais [US$35,900], while a fossil fuel-powered vehicle with the same performance can cost 40,000 reais. 

It's essential to develop and manufacture batteries that can meet the global demand at lower prices. This is happening gradually. An Indian automaker recently launched a more affordable model. Renault announced that it will bring an electric model with more than 300km of autonomy to Brazil, with an expected price below 110,000 reais. It's very good news, because we see that there's movement from the manufacturers. 

Elon Musk [CEO of Tesla Motors] believes that 2025 will be the turning point, as companies will be able to produce batteries with greater autonomy and at more affordable prices. 

Editor's note: In December, Volvo announced that it will create routes with fast chargers on highways in Brazil’s southeast and that it will make its entire range of XC40 models 100% electric.

BNamericas: What other challenges does the electric car market face in Brazil?

Bianchin: The popularization of electric cars also comes up against the available charging infrastructure. We need to ensure that buyers who want to travel, for example, can count on charging stations along the entire route. 

In addition, recharging at existing electric service stations isn't yet regularized, which means that it isn't charged like the fuel available at conventional stations. It's essential to make this business viable for the market so that companies become interested, which will make it more attractive for companies and users. 

In principle, private electric charging stations should grow more in Brazil, but we see that other countries have made great efforts to expand the market of public stations in order to make commuting between cities viable. Governments in the US, Japan and European countries are promoting the penetration of electric vehicles, from the acquisition of the vehicles to installation of the electric service stations. In Brazil we see specific initiatives: in Paraná, for example, electric cars don't pay IPVA [vehicle circulation tax]. 

BNamericas: What are the main projects that Lactec is currently working on? 

Bianchin: We have two correlated projects with Copel Distribuição. One consists of the development of a hub for supplying electric vehicles, making chargers with different powers available. The other is for ticketing to allow users to pay for recharges at electric charging stations.

With China Three Gorges (CTG) we're implementing a new 1,300km electric railway that will connect several hydroelectric plants operated by the company. The idea is that the fleet of cars acquired by CTG can circulate between the company's headquarters and the last plant, Jupira [on the Paraná river].

We're also working on a project for the electrification of a truck with Neoenergia.