Sales of fully electric and hybrid cars in Brazil are projected to overtake those of traditional combustion engine vehicles by 2030, according to a study released on Friday by the Brazilian Automotive Industry Association (Anfavea). The study, conducted by the Boston Consulting Group, estimates that electric and hybrid vehicles could account for over 90% of the domestic car market by 2040, a significant increase from the current 7%.
Brazil, the world’s eighth-largest car producer and sixth-largest vehicle market by domestic sales, is aligning with global trends toward greener transportation. The shift is being driven by growing consumer demand for more sustainable options, alongside efforts to reduce carbon emissions in the automotive sector.
Chinese automakers BYD and GWM have established themselves as key players in Brazil’s electric vehicle market. Although they currently import electric cars, both companies have announced plans to begin manufacturing locally. This move strengthens their presence in Brazil, outpacing U.S. and European competitors who are only beginning to introduce hybrid-flex vehicles in the country. General Motors and Stellantis, for example, are focusing on models that can run on both ethanol and gasoline, along with electric batteries.
Brazil’s unique reliance on ethanol as a renewable fuel source is likely to play a role in its hybrid car market. As the country continues to embrace electrification, the combination of electric vehicles and alternative fuels like ethanol positions Brazil to become a significant player in the global transition to greener transport.
