Against the backdrop of high fuel costs and the growing popularity of the concept of sustainable development, Brazilian consumers are increasingly concerned about the “green” performance of cars.
In the past few years, the electric vehicle market in Brazil and China has developed rapidly. Industry data show that from January to early December 2021, the sales volume of electric vehicles in Brazil has exceeded 30000, an increase of more than 50% over 2020.
The market development prospect is huge
Paul, an analyst at Brazil’s National Automobile Industry Association, said that the development direction of automobile electrification is irreversible both in Brazil and around the world. Although the relevant infrastructure and market system of electric vehicles in Brazil are still imperfect, and the high price leads to low consumer acceptance, the government has realized that the new energy vehicle market will create more green jobs, promote local manufacturing and assembly in the automotive industry, and promote the development of renewable energy.
The Brazilian government encourages the development of new energy and is actively promoting the Congress to consider and pass the bill on promoting sustainable transportation, which will provide incentive policies for new energy vehicles in terms of tariffs, consumption taxes and other taxes. The policies will continue to promote the growth of the electric vehicle market in the future.
Sales of electric vehicles and plug-in electric vehicles in Brazil increased by 3477% year-on-year in 2021, according to the Brazilian industrial association. Among them, the sales volume of electric vehicles in December reached 4545, the highest since 2012.
Paul pointed out that Brazil is still the fourth largest heavy vehicle market and the eighth largest light vehicle market in the world. The Brazilian market is not saturated with new energy vehicles. Brazilian consumers have strong demand for cost-effective new energy models. In the future, the development speed and scale of new energy vehicle industry will be more considerable.
According to the report released by Bloomberg new energy finance, an energy research institution, global new energy vehicle sales showed explosive growth from 2018 to 2021, of which the fastest growth was in Latin America. The report also predicts that as Brazil and other Latin American countries continue to introduce relevant policies and measures to further promote the accelerated development of green energy industry, the sales of new energy vehicles will grow at a high speed of 25% a year.
Active layout of Chinese funded Auto Enterprises
Brazil pays attention to the development of clean energy. The huge development potential of the electric vehicle market has provided sufficient development power and confidence for Chinese automobile enterprises. Chinese automobile enterprises such as great wall, Byd Company Limited(002594) , Chery and so on have become important participants in the Brazilian automobile market.
Based on the market opportunity of China’s electric vehicle industry in Brazil, China Greatwall Technology Group Co.Ltd(000066) automobile has announced to invest and build a plant in Brazil to produce hybrid and electric vehicles. On January 27 this year, in Sao Paulo, Brazil, Great Wall Motor Company Limited(601633) officially took over the factory of malapolis, Iraq. According to the introduction, Great Wall Motor Company Limited(601633) will invest 11.5 billion yuan in the intelligent and digital transformation of the factory. It is expected to be put into operation in the second half of 2023, which will directly create 2000 jobs and an annual production capacity of 100000 units. It will radiate the whole Latin American region in the future.
Great Wall Motor Company Limited(601633) said that it would fully implement the “2025 strategy” in the Brazilian market. The whole series of products launched would be equipped with Internet of vehicles and intelligent assisted driving system, and the first 5g car would be launched in the Brazilian market to bring new mobile travel experience to local users.
In addition, Byd Company Limited(002594) has also put into operation a modern new energy “battery factory” in Brazil, which will provide the production of core parts for a variety of models under Byd Company Limited(002594) including buses, electric trucks, electric trucks, etc. In 2021, Byd Company Limited(002594) of electric trucks sold well in Brazil.
Recently, Byd Company Limited(002594) announced in the ” Byd Company Limited(002594) VIP day” held in Brazil that Tang EV will be officially listed in Brazil this year, which is locally named “Tan EV”. This is the first time that Byd Company Limited(002594) pure electric passenger vehicles have landed in the Brazilian market. As a 7-seat pure electric SUV, Tang EV is equipped with a blade battery with a battery capacity of 86.4k kWh and a range of more than 500 kilometers. The company believes that the electric vehicle has high quality, reasonable cost and price, and has optimistic sales prospects in Brazil.
According to the relevant person in charge of Chery Automobile Brazil, Chery is the first Chinese passenger car enterprise to invest and build a factory in Brazil. Here is Chery’s largest overseas factory, which was completed and put into operation in 2014, with an annual production capacity of 150000 vehicles. At present, Chery automobile is the brand with the fastest growth in the Brazilian automobile market, with a market share of 2.32%, surpassing Nissan and Chevrolet. New projects are being carried out in new energy, new products and new technologies.
In recent years, Chery has continuously cultivated and accumulated in the fields of powertrain, three electricity technology and intelligence, and carried out vehicle tests in Brazil all year round, which have become the key to the continuous improvement of its overseas sales, and new energy vehicles have also become an important model exported by the company.
China Shanxi Guoxin Energy Corporation Limited(600617) vehicle technology has basically reached the international advanced level, and has made comprehensive progress in terms of product appearance, interior decoration, mileage, environmental adaptability, vehicle performance, quality, energy consumption and intelligent application. Industry insiders generally believe that although it started late, the Brazilian electric vehicle market has huge development space, and China’s independent new energy vehicle products have competitive advantages and promising prospects.
