- EV market in Brazil will grow from US$661.3 million in 2024 to US$1,236.0 million by 2028.
- China exported 40,163 new energy vehicles to Brazil in April 2024, marking a 13-fold year-on-year increase.
- Chinese automakers, including BYD and Great Wall Motor, are investing in local production in Brazil.
Brazil has overtaken Belgium as a top importer of EV models from the world’s largest producer, China
Brazil’s EV market is booming. In 2024, its EV market is set to generate US$661.3 million in revenue. The market is expected to grow at a compound annual growth rate (CAGR) of 16.92% from 2024 to 2028. By the end of this period, the market volume is projected to reach US$1,236.0 million.
Unit sales in Brazil’s EV market are also on the rise…
By 2028, an estimated 26,500 electric vehicles will be sold. The volume-weighted average price of these vehicles is expected to be around US$47,500 in 2024. Despite challenges such as limited infrastructure and high import taxes, demand for electric vehicles is increasing. This is largely due to growing environmental awareness and government incentives.
Why’s this important?
Well, recently Brazil overtook Belgium as the largest export market for Chinese EVs outside of Russia. Data from the China Passenger Car Association (CPCA) shows that exports of electric and plug-in hybrid cars to Brazil soared 13-fold year-on-year, reaching 40,163 units in April. This makes Brazil the biggest Western export market for Chinese ‘new energy vehicles’ for the second consecutive month.
This surge in exports comes ahead of an increase in tariffs on EV and hybrid vehicle imports. From July, Brazil will raise these tariffs to encourage local auto production. In response, several Chinese automakers are ramping up investments in Brazil. For instance, BYD is building a manufacturing complex to begin local production by the end of 2024 or early 2025. Great Wall Motor plans to start operations at its Brazilian plant this month.
In contrast, imports of Chinese electric passenger vehicles have fallen significantly in several European countries and the US, including Spain, France, the Netherlands, and Norway. The European Union’s anti-subsidy probe has disrupted Chinese vehicle exports to the bloc. Consequently, Chinese carmakers are increasingly exploring markets in South America, Australia, and Asian regions.
