According to data released by the Brazilian Electric Vehicle Association (ABVE), electric vehicle sales in Brazil nearly doubled last year, reaching 93,927 units, a 91% increase from the previous year's 49,245 units.
According to the association's forecasts, electric vehicle sales in Brazil are expected to continue to grow significantly this year, surpassing 150,000 units. This optimistic prediction comes after the outstanding performance in 2023.
Although electric vehicles account for only 0.5% of the total number of cars in Brazil, their growth rate has exceeded expectations. Nearly 40% of electric vehicles in Brazil were sold in the last quarter of 2023. At the beginning of this year, Brazilian consumers rushed to purchase new electric vehicles before the implementation of the new federal import tax on electric cars.
By July 2026, Brazil's import tax on electric cars will gradually increase to 35%, but the magnitude of the increase will depend on the vehicle model. However, the Brazilian government recently announced a plan to accelerate the decarbonization of the automotive industry, providing tax incentives for companies that align with sustainable development goals. It is estimated that the plan will offer at least 3 billion Brazilian reais (approximately $610.8 million).
Ricardo Bastos, head of the ABVE association, stated, "This plan will make companies clearer when formulating investment plans, including light vehicles and heavy vehicles (such as buses and trucks), as well as electric charging infrastructure."
In the near future, many companies will start producing electric vehicles in Brazil. BYD has already begun transforming a former Ford factory in the northeastern state of Bahia into an electric vehicle production base.
Stellantis subsequently announced that it would produce ethanol-powered hybrid vehicles in the automotive center of Goiana in the northeastern state of Pernambuco, Brazil.
