Brazil is poised to become the next EV hotspot, according to a new study from Frost & Sullivan. The company’s Strategic Analysis of Brazil Electric Vehicle Market [sic] estimates that 35 plug-in models will be launched in Brazil, and sell some 80,877 units by 2020. PHEVs will account for more than 70 percent of the market.
“Although Brazil’s automotive policy towards EVs is at an early stage, the second phase of its Inovar-Auto program will provide incentives for EV manufacturers and end users, thereby encouraging adoption,” said Research Analyst Ananth Srinivasan. “The expansion of EV charging infrastructure, currently focused on Sao Paulo and Rio de Janeiro, to other key regions such as Pernambuco, Sergipe and Ceara will further boost uptake.”
Brazil is one of the world’s largest sugarcane growers, and one of the biggest markets for ethanol-powered vehicles. So far, Brazilian drivers have shown little interest in hybrids. Nevertheless, Frost & Sullivan believes that supportive legislation, tax incentives and enhancements in charging infrastructure will have the plug-in market hopping by 2017. It estimates that PHEV prices will fall by 25 to 37 percent, and EV prices by 25 to 40 percent, over the next seven years.
“Product launches in the small- and mid-size sedan segments, maintaining a price bandwidth of $40,000 to $65,000 and offering diverse business models, are key success factors in the Brazilian EV market,” noted Srinivasan. “Market participants will also benefit from an early entry strategy.”
Source: Frost & Sullivan