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With sales of more than 150,000 electrified vehicles expected this year and several automakers investing in local manufacturing, ethanol-flexible fuel hybrid vehicles could gain traction. Whether the charging network will keep pace with this growth remains to be seen.
Brazil has been experiencing exponential growth in its fleet of electrified vehicles, with record sales as more low-cost models are launched, the so-called “Dolphin effect.” The term has been used by the market following the launch of the BYD Dolphin with a price closer to combustion cars, around 150,000 reais ($27,600), which led other brands to reposition their electrified models in the Brazilian market.
The effect materialized in the first half of 2024, with 79,304 electrified light vehicles sold in Brazil, according to a study by the Brazilian Electric Vehicle Association (ABVE). This total represents an increase of 146% over the 32,239 sold in the first half of 2023 and 288% over the 20,427 sold in the first half of 2022. The associations forecast is that 2024 will end with more than 150,000 electrified vehicles sold in the year, which would represent an increase of 60% compared to the 93,927 sold in 2023.
ABVE President Ricardo Bastos says that the expansion of electromobility is a path of no return. “Electrification will only grow in Brazil. There may be a variation in the level of growth, usually impacted by fiscal issues or the pace of infrastructure growth, but we are very optimistic about companies’ investment plans in charging stations.”
Domestic manufacturing of electrified vehicles
In addition to more competitive prices, the automotive industry is betting on the production of electrified vehicles in the country. Proof of this is the progress towards local manufacturing of electrified vehicles by Chinese giants BYD, in a manufacturing complex in Camaçari, Bahia, and GMW, in Iracemápolis, in the interior of São Paulo. The companies expect to start production between the end of 2024 and the beginning of 2025.
In this context, other major car manufacturers have also announced investments in electric mobility in Brazil, such as GM, Toyota, Volkswagen and GAC. The latter has announced that it plans to invest $1 billion in Brazil, including plans to set up factories, research and development centers and spare parts warehouses.
Stellantis, owner of the Chrysler, Citroën, Fiat, Jeep and Peugeot brands, among others, announced an investment of 30 billion reais in South America. The investment includes the development of Bio-Hybrid technology, which combines electrification with flex-fuel engines powered by biofuels such as ethanol.
BYD and GWM are also expected to launch ethanol-powered plug-in flexible hybrid models starting next year.
In the same vein, Brazilian manufacturer Lecar announced at the end of June that it was giving up on manufacturing 100% electric vehicles. From now on, the company will focus on manufacturing flexible hybrid cars powered by ethanol without a charging socket.
According to Lecar, another socket is being developed so that the vehicles battery can be powered from external sources. This is due, according to the company, to the fact that the charging network is not evolving at the same pace as the sale of electric cars.
"We are far from having the necessary number of chargers to popularize this type of vehicle throughout the country. We will need billions of investment to have the right conditions," said the companys founder, Flávio Figueiredo Assis.
Charging infrastructure
The growing demand for electric vehicles in Brazil needs to be accompanied by charging stations in the country and, according to ABVE, in July Brazil had approximately 8,800 public or semi-public charging points for electrified vehicles.
"We expect these stations to grow by 50% by the end of the year. We know that there is a lot of investment in public infrastructure coming, and with one important feature: most of the new installations must be high-capacity charging points, also known as fast chargers, which charge the car in approximately 40 minutes," analyses the president of ABVE.
The Tupi Mobilidade (formerly Tupinambá) platform, which connects drivers with charging points, has already reached 5.5 GWh of energy sold on its platform with more than 235,000 recharges, the energy of which comes from renewable sources, much of it authenticated by I-RE certificates. The app allows users to consult detailed information about the charging points, such as the type of plug and the power of the charger. Spaces can be reserved up to 15 minutes in advance and users can pay directly in the app.
The app has over 67,000 users and almost 200 customers, with more than 600 connected charging points. “The growth target for the 24/25 season is 1,000 connected points by March 2025,” says Tupi Mobilidade CEO Davi Bertoncello.
According to the executive, Tupi has signed a partnership with BYD to offer the market the BYD Recharge app, with access to more than 500 charging points in the country. |
