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Plug-in vehicles consolidate their position with 69% of sales from January to June. The closing month of the first semester registered 14,396 license plates issued, the third best month on record. According to the Brazilian Electric Vehicle Association (ABVE), by the end of the year the country will have a new sales record with more than 150,000 electrified vehicles.With 14,396 license plates issued in June (the third best month in the historical series), the first half of 2024 saw a total of 79,304 electrified light vehicles sold in Brazil. This total represents an increase of 146% over the 32,239 in the first half of 2023 and 288% over the 20,427 in the first half of 2022.
The numbers attest to the exuberant momentum of electromobility in Brazil and confirm the forecast of the Brazilian Electric Vehicle Association (ABVE) that 2024 will end with a new record of more than 150,000 electrified vehicles sold in the year, which would mean a growth of about 60% over the 93,927 sold in 2023.
In June alone, the 14,396 vehicles registered represented an increase of 131% compared to June 2023 (6,225) and 253% compared to June 2022 (4,073). With the result of the first half, Brazil almost reached the symbolic mark of 300 thousand electrified light vehicles in circulation in the country since 2012 (start of the ABVE historical series). Or, more precisely, 299,735 vehicles until June.
Electrified vehicles include all technologies: 100% electric BEVs, plug-in hybrid electric PHEVs, flex and gasoline HEVs (non-plug-in) and microhybrid MHEVs, with a low degree of electrification.
Plug-ins dominate
The first half result consolidates the evolution of the Brazilian electromobility market, currently dominated by plug-in electric vehicles and, among them, fully electric BEVs. From January to June 2024, BEVs accounted for 39% of all electrified vehicles registered in the country (31,204). PHEVs, hybrid electric vehicles that also have external charging, accounted for 29.5% (23,296). Plug-in vehicles, therefore (BEV + PHEV), accounted for no less than 69% of the light electrified market in Brazil during the period.
Conventional HEVs (non-plug-in electric vehicles powered by petrol or diesel) accounted for 9.3% of sales in the first half (7,394). Flexible ethanol-fuelled HEVs accounted for 14% (10,987). And micro-hybrid MHEVs accounted for 8% (6,423).
The figures for the first half of the year add to the recent important updates for electromobility in Brazil. The sanction by President Luiz Inácio Lula da Silva, on June 27, of the Mover Program – Brazils new automotive policy, focused on more energy-efficient and environmentally sustainable vehicles – is one example.
On the other hand, there was an increase in the import tax rates for electrified vehicles, which came into effect on 1 July. BEVs went from 10% (on 1 January 2024) to 18%. Plug-in hybrids (PHEVs), from 12% to 20%. And HEVs (non-plug-in hybrids), from 15% to 25%. All percentages should reach 35% in July 2026, according to the calendar published by the Ministry of Public Works (MDIC) at the end of last year.
Another factor of concern for the sector is the lack of definition of the new safety standards to prevent accidents with electric cars, launched for public consultation in April by the Fire Department of the State of São Paulo. The concern surrounding these standards, which should be defined in the second half of the year, has affected the market for electric charging in residential and commercial buildings, and not only in São Paulo, the state responsible for 34% of national sales of light electrified vehicles.
“The figures for June and the first half of the year confirm the excellent moment of electromobility in Brazil, but we must be alert to the dangers of going backwards on the path of decarbonisation and energy efficiency in the Brazilian transport matrix,” said ABVE President Ricardo Bastos.
“We have heard worrying news about the early introduction of the 35% tax rate on the import of electric vehicles, which the federal government had only planned for July 2026,” he added. “We believe that, if confirmed, this early introduction would constitute a regrettable violation of the rules established just six months ago by the government itself.”
Another concern is the possible inclusion of electric vehicles in the Selective Tax, the so-called “sin tax”. For ABVE, it makes no sense to include electric vehicles in this category. “Electric vehicles are high-tech products that contribute to reducing urban pollution, greenhouse gas emissions and high noise levels in Brazilian cities,” said the president of ABVE. “They are decisive factors in improving the quality of life and reducing deaths associated with pollution in large cities. “We do not think it is appropriate that these vehicles be taxed as if they were products harmful to health or the environment, which is not at all the case,” concluded Bastos. |
