South America Electric Vehicle Market Research Report, 2027

According to the report published by Actual Market Research under the title ‘South America Electric Vehicle Market Research Report, 2027,’ the region accounted for a market of USD 0.59 Billion in the year 2021, which is expected to grow with more than 18% CAGR for 2022-2027. The region contributes the least to the global market with a share of less than 1% over the period. In the recent past, factors such as achieving energy efficiency by reducing emissions, the need for addressing future energy requirements have made the OEMs start producing electric vehicles in the region. The demand for electric trucks in the South America region has been increasing, with the commercial vehicle segment expected to contribute to over 30% during the forecast period. The region has seen numerous e-taxi and e-bus, fleet acquisition targets by logistics and utility companies, local design and manufacturing of fully electric micro-cars, car sharing, and car rental services in Brazil and Argentina. The PHEV segment has been ruling the market with Brazil stands out as a leader with the most charging stations. In 2021, sales of electric and hybrid vehicles increased in Brazil. In the South American nation during that year, close to 35,000 units were sold, a 77 percent increase from the year before. In Argentina, there is a constant increase in the demand of low emission vehicles, including battery electric cars and hybrid electric vehicles. For instance, in 2021, 5,871 low-emission vehicles were sold in the country. These include battery electric vehicles and hybrid electric vehicles. This signifies a growth of 148%, on 3,488 electric vehicles sold in 2020 Colombia and Costa Rica have comprehensive electric mobility laws in force, and there are several others with initiatives underway for the formulation of similar legal instruments. Tax measures taken by various national governments in South America are important tools that have helped in fuelling the demand for EVs in the region, leading to technological breakthroughs, which have further propelled the market growth. Electronic vehicles are more economical when compared to conventionally use fuel-based vehicles. The hike in the prices of petroleum products worldwide has limited their supply. Over the past few years, electric vehicles (EVs) have witnessed considerable growth in the region due to the need for addressing future energy requirements. The need to attain sustainable transportation plays a significant role in driving electric vehicle demand. The electric vehicle market is coming up as an integral part of the automotive industry and represents a pathway towards achieving energy efficiency along with reduced emission of pollutants and other greenhouse gasses. Apart from the industry’s slow and steady shift towards EVs pertaining to environmental issues, tax Benefits, rebates and subsidies are the other factors d driving the market. But lack of adequate charging infrastructure because of the market being in its nascent stage and low gasoline cost in some countries is expected to hinder marker growth over the forecast period. For instance, bus manufacturers like BYD are entering the South American market by overcoming the challenges to replace diesel buses with battery-operated ones. BYD Auto has received orders from Argentina to become a domestic auto manufacturer and will contribute to revamping the existing bus fleets with 100% electric buses. Over the past few years, the demand for electric trucks in the South American region has been increasing. Factors such as achieving energy efficiency by reducing emissions, the need for addressing future energy requirements, an anticipated increase in the adoption of electric trucks for logistics and municipal applications, and investments made by OEMs to start producing of electric vehicles in the region are driving the market. Few players such as Hyundai Motor Company, Kia Motors Corporation, BYD Auto, BMW Group, and Groupe Renault dominate the South America Electric Vehicles Market. The market for electric vehicles is characterized by both established companies and small start-ups. There are also numerous regional players currently focusing on specific geographies. The national green growth policy for 2030, with one of the goals being the introduction of 600,000 electric vehicles by 2030 is taking place in Brazil. More specifically, according to this policy, it is expected to deploy 400,000 electric light-duty vehicles and 13,000 trucks. In October 2021, BYD in collaboration with local operators Enel X and Metbus, established South America's first electric bus line in Santiago, Chile. The company has been the largest supplier of electric vehicles in the South America region. Besides electric trucks, BYD has supplied electric buses and taxis to Argentina, Chile, and Colombia. Apart from Volkswagen, the company is also enquiring Volvo, Mercedes, etc., firms to check for cost competitiveness. The demand for electric commercial vehicles is poised to grow at a faster pace owing to the rising trend toward the adoption of electric vehicles, especially from the public transportation and logistics sectors. On the other hand, air pollution in Colombia is worsening at an exponential rate. Cities like Medellin and Bogota face high risks in terms of health and air quality. Following numerous studies from various national universities, researchers found that diesel vehicles are the primary source of pollution within Bogota. Hence, the government is taking incentives and subsidies to achieve an ambitious target of 600,000 EVs on road by 2030 to combat the aforementioned environmental issues. Primarily, tax benefits serve as the biggest incentive currently. Vehicle tax in the country is based on the overall valuation of the car itself, varying anywhere from 1.5% - 3.5%. However, this has been relaxed to only 1% for Electric Vehicles. In addition to tax rebates, government is also lowering electricity tariffs that would make charging EVs even more affordable. Also, major automobile companies like Renault, BMW, Hyundai, and KIA are actively introducing their electric portfolio in Colombia. There are also a large number of regional players currently focusing on specific geographies. For the commercial vehicle segment, BYD and Volvo are the most active companies. BMW, Kia, Renault, and Hyundai are some of the major companies which cater to passenger cars. The implementation of electric mobility has also increased the demand for charging infrastructure and players are partnering with other companies. For instance, In March 2022, Shell exclaimed to install the first EV chargers in the service station network. For that, the company is working on its e-mobility strategy for the South-American region and plans to deploy its first EV chargers in Argentina. The company is currently assessing the initiative through a partnership with Audi and Volkswagen and has recently acquired a number of chargers to install in its Argentinian service stations. Recent Developments In July 2022, BYD launched the compact D1, its third EV model in the Brazilian market following the seven-seat Tan SUV and the Han sedan. The electric D1 will be sold directly to large fleet owners for BRL 269,900. In April 2022, BYD Auto received an order of 1,000 D1 electric cars which are specially developed for the ridesharing services in alliance with BYD Auto and Didi Chuxing from Vemo a Mexico-based mobility provider company. In April 2022, Renault introduced an all-electric version of its popular hatchback, the Kwid E-TECH, in Brazil. The model is available at a price of 142,990 Brazilian Real. The new Kwid E-Tech has 26.8 kWh batteries that can provide a range of 298 km in urban use and 265 km in mixed cycle driving, which combines city and highway driving. The car can charge to a range of 190 km in about 9 hours when charged from a 20A and 220V domestic outlet. Covid-19 Impact: The COVID-19 pandemic has affected the automotive industry in the region as production and sales have witnessed a decline in 2020. Furthermore, the COVID-19 pandemic has a minimal effect on the South American electric vehicle market. However, in 2021, electric vehicle sales in the countries like Brazil and Argentina have helped the market recover quickly and regain momentum. Companies Mentioned: Bentley Motors Limited, BMW Group, BYD Company Motors, Citroen, Daimler AG, Ford Motors, General Motors, Hyundai, Irizar, Micro Mobility, Nissan Motor, SAIC, Tata Motors, Tesla, Toyota Motor Corporation, Volkswagen, Yutong, Zhejiang Geely Holding Group Considered In the Report • Geography: South America • Base year: 2021 • Historical year: 2016 • Estimated Year: 2022 • Forecasted year: 2025 Countries covered: • Brazil • Argentina • Chile • Columbia Aspects Covered In the Report • Market Size By Value for the time period (2016-2027F) • Market Size By Volume for the time period (2016-2027F) • Market Share by Vehicle Type (Passenger & Light Commercial) • Market Share by Propulsion Type (BEV & PHEV) • Market Share by Sales Channel (2016, 2021 & 2027F) • Market Share by Charging Type (Normal & Fast) • Market Share by Country Key Points Covered in this report: • Market Evolution through value and volume CAGRs at different verticals • Detailed discussion on the market dynamics that influence the market and the possible opportunities • In sights on the market leader's performance including market shares, strategies, products, financial positions, etc The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the electric vehicle industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.