Brazil’s EV sales nearly doubled in 2023
Sales of electric vehicles in Brazil almost doubled last year — reaching 93,927 through December, up from just 49,245 the previous year, according to numbers released by Abve, the association of Brazilian electric vehicle producers.
While still a small fraction of the Brazilian fleet – electric vehicles (EVs) make up just 0.5 percent of all vehicles in the country – the growth has exceeded expectations.
More than half of EV sales were of the plug-in type, with external battery charging. Hybrid models, which combine an internal combustion engine with electric valves, had been the preferred option until 2022.
Nearly 40 percent of recorded sales occurred in the last quarter of 2023. Consumers especially rushed to buy new EVs before a new federal import tax on electrical items went into force at the turn of the year.
The import tax on EVs will rise gradually to 35 percent by July 2026, although the steepness of the increase will depend on the vehicle model.
At the same time, however, the federal government recently enacted a program to accelerate the decarbonization of the automotive sector, with tax incentives for companies that adapt to sustainability goals. It is expected to sacrifice at least BRL 3 billion (USD 610,800) in taxes.
“The program will allow companies to prepare their investment plans with more clarity, both for light vehicles and heavy vehicles, such as buses and trucks, as well as for electric charging infrastructure,” said Ricardo Bastos, head of Abve.
Several companies are set to produce EVs in Brazil in the near future. Chinese automaker BYD, the world’s leading producer of electric vehicles, has begun work to convert a former Ford plant in the northeastern state of Bahia into an EV manufacturing facility.
Shortly after, Stellantis announced that it would manufacture ethanol-powered hybrid vehicles in the automotive hub of Goiana, in the northeastern state of Pernambuco.
The post Brazil’s EV sales nearly doubled in 2023 appeared first on The Brazilian Report.