Brazil seen surpassing 1mn electric vehicles by 2030

Brazil is expected to surpass the milestone of 1mn hybrid (HEV) and battery (BEV) electric vehicles in 2030, the federal energy research company EPE projects. 

Currently, about 50,000 electric vehicles are circulating, also considering plug-in hybrid electric units (PHVE), according to sector association ABVE. 

In a study published on Wednesday, EPE said the electrification of vehicles has increased due to state and municipal incentives, such as exemption from car circulation and tax rebates.

However, several barriers prevent more rapid penetration, mostly related to affordability in addition to a lack of infrastructure, such as recharging stations, and qualified labor. 

Besides, Brazil may be a late adopter of electric vehicles because it is an oil producer, with capacity to produce renewable fuels and a manufacturing park able to develop local technologies, as occurred with flex-fuel vehicles (gasoline/ethanol).

Meanwhile, pressures for decarbonization should accelerate the penetration of electric buses, especially in some state capitals.

The national urban mobility policy has led to the creation of mobility plans that involve reductions in emissions and pollutants. 

Also, some cities entering the C40 alliance, which involves nearly 100 world-leading cities collaborating to confront the climate crisis, may accelerate the implementation of policies to reduce emissions, EPE said.

Regarding trucks, gradual penetration of electric, hybrid and natural gas-powered units is projected over the next decade. This shift has intensified in recent years, as a result of the greater mobilization of companies and governments in sustainability strategies and initiatives.

Sales of electric and compressed natural gas-fueled trucks and buses rose from a few dozen in 2020 to 408 in 2021, and 1,004 by November 2022.