Summary
- Modern PHEVs with all-electric ranges over 50 km and hyper-efficient powertrains are an improvement on regular ICEVs
- Brazil’s EV market favors PHEVs, with two thirds of the EV market share and a record high in December
- Total vehicle sales in Brazil grew by 21% in 2024, with EV sales growing by 133%
- BYD Song is the most popular EV in Brazil, followed by GWM Haval H6 and BYD Dolphin Mini
- Brazil’s move towards PHEVs may be beneficial due to the country’s expertise in biofuels and potential to reduce oil consumption.
Article
In Latin America, the preference for electric vehicles (EVs) has primarily been for battery electric vehicles (BEVs). However, in Brazil, plug-in hybrid electric vehicles (PHEVs) have been dominating the market, with PHEVs commanding two thirds of the EV market and reaching an all-time high record in December. The market for vehicles in Brazil saw significant growth in 2024, with total vehicle sales increasing by 21% to 2.6 million vehicles. EV sales also saw a substantial increase of 133% throughout the year.
The rise of PHEVs in Brazil can be attributed to the introduction of the BYD Song, a large SUV that offers an all-electric range and efficient powertrain at an affordable price. The BYD Song accounted for over a third of EV sales in December, followed by models from GWM and Volvo. BYD, in particular, dominated the market with 70% of the BEV market share and over 50% of the PHEV market share, establishing itself as the most dominant automaker in Brazil.
Looking ahead, BYD is set to begin producing the BYD Song and BYD Dolphin Mini in Brazil, while other brands like GWM and Chery are also ramping up production for their PHEV models. The market in Brazil is expected to be dominated by locally produced PHEVs in the near future, especially as tariffs go back up again, favoring domestic production. The shift towards protectionism may deepen the PHEV dominance in the market, as only a few BEV models will be produced locally.
Despite the dominance of PHEVs in Brazil, the country’s expertise in biofuels may provide a unique advantage for these vehicles. All new PHEV models produced in Brazil will come with flexi-fuel engines that can run on ethanol or gasoline-ethanol blends. This approach could significantly reduce fuel consumption and ultimately help in phasing out oil consumption in the country. Brazil’s focus on biofuels may make PHEVs a viable solution for reducing emissions and transitioning towards cleaner transportation.
The potential for PHEVs to make a real difference in Brazil’s energy transition is significant, especially when considering the country’s expertise in biofuels and the strong presence of these vehicles in the market. As the shift towards electric mobility continues, it will be interesting to see how the market evolves and whether BEVs will eventually dominate as they have in other regions. The future of mobility in Brazil seems to be moving towards a greener and cleaner direction, with PHEVs playing a crucial role in the transition.
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