O The automotive market is undergoing transformation, with a growing transition to electric and hybrid vehicles. A recent study by KPMG revealed that the majority of Brazilians, around 89.7%, are inclined to opt for electric vehicles, despite current challenges such as high costs and limited infrastructure.
While Chinese brands lead the way in the production of fully electric cars, other global automakers still focus on hybrid models. Brazil, in turn, is moving towards a scenario where electric vehicles could play a prominent role, influenced by factors such as the volatility of the oil market and the search for more sustainable alternatives.
Alessandro Azzoni, lawyer and economist specialized in Environmental Law, highlights that the replacement of vehicles powered by fossil fuels is a growing trend. He points out that, despite price and infrastructure challenges, the electric vehicle market in Brazil has potential for growth, mainly with the introduction of subsidies and increased supply.
Currently, electric vehicles represent only 1.04% of the market, while hybrids account for 4.4%. The lack of charging infrastructure is a significant obstacle, especially in smaller cities. Yet, legislation favors flex hybrid vehicles over electric ones, with lower taxes for the former.
Despite these challenges, Azzoni believes that, in less than three years, electric car prices could become very attractive in Brazil, thanks to increased supply and incentives from automakers. He, however, highlights the concern that the cost of replacing batteries and the resale value are still not competitive.
Charging infrastructure also represents a challenge, with most existing points offering slow charging, which limits the use of electric vehicles predominantly to urban areas. The expansion of the fast charging network, capable of charging up to 85% of the battery in 30 minutes, is essential for the wider adoption of these vehicles in the country.
