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Electrical Infrastructure Expansion Will Draw Investments to Brazil's Electric Vehicle Market


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SAO PAULO--Nov. 12, 2013: Brazil ranks as the world's fourth most important automotive market, with a country's electric vehicle (EV) and supporting infrastructure market that has immense potential for growth if automakers decide to invest in it. As energy concessionaries in the country move ahead with research and development (R&D) for EV supporting infrastructure and open up to partnerships, the scope for the market will greatly widen. The Brazilian EV market will also expand rapidly once automotive companies overcome challenges, such as high initial costs, by deploying new business models and leveraging the anticipated import tax relief.

New analysis from Frost & Sullivan (Frost and Sullivan), Brazilian Electric Vehicle and Supporting Infrastructure Market, finds that the country had just 125 EVs in operation in 2012, chiefly for R&D and marketing. By 2017, this is expected to reach 5,700 units through imports, driven by import tax reliefs.

Brazil's EV and supporting infrastructure market presents two main issues. One is the high acquisition costs; final EV price is two to three times higher in Brazil than in European countries due to the impact of taxes and the huge capital required to implement EVs. Lack of regulations determining how energy for recharge stations will be commercialized is another challenge, especially for private companies, as only nationalized energy utilities have the permission to manage energy in Brazil.

Acknowledging the global EV and recharge stations trend, automakers should prepare for the imminent sustainable vehicle demand as energy utilities have already initiated their investments in R&D. The time is ideal for the introduction of new business models and lobbying with the government for support in terms of regulations and incentives.

"Several energy companies are investing in R&D and acquiring EVs for the development of EV infrastructure such as recharge stations, in order to be better prepared if automakers decide to begin operations in Brazil," said Frost & Sullivan Automotive & Transportation Research Analyst Vinicius Vargas. "Supplying these vehicles would mean large revenues and a new market. In fact, partnerships are open and new projects are expected to be launched in the next few months."

If you are interested in more information on this research, please send an e-mail to Francesca Valente, Corporate Communications, at francesca.valente@frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

Brazilian Electric Vehicle and Supporting Infrastructure Market is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan's related research services include: Brazilian Electricity Industry, World Lithium-ion Battery Market, World Electric Vehicle Battery Market, Brazil Electric Vehicle Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.