2020 was the best year for electric mobility in Brazil

Electric vehicle sales in Brazil reached a record high in 2020. According to ABVE (Brazilian Electric Vehicle Association), there was a 66,5% increase in registrations compared to 2019. According to the association, the number jumped from 11.858 units in 2019 to 19.745 last year. In December 2020 alone, 1.949 vehicles were sold.

This was the first time that the electric vehicle segment reached 1% of the total market for automobiles and light commercial vehicles (1.950.889), according to Fenabrave (National Federation of Automotive Vehicle Distributors). With this result, the total fleet of electric or hybrid vehicles in circulation in Brazil now reaches 42.269 units.

exponential growth

According to ABVE, the 19.745 units sold in 2020 represent an increase of 66,5% over 2019 (11.858), 397% over 2018 (3.970), 499% over 2017 (3.296) and 1.709% over 2016 (1.091). “We have to interpret these numbers in two ways. On the one hand, we should celebrate the fact that electric vehicles have reached 1% of the market. It is an important symbolic milestone”, said Antonio Calcagnotto, director of Light Vehicles at ABVE and director of institutional relations and sustainability at Audi do Brasil.

“But it is clear that we are still a long way from a significant share of the total market. Therefore, we have to insist on measures to support electric mobility,” he added.

ABVE advocates, for example, equating the IPI (Tax on Industrialized Products) on electric vehicles to the rate of most regular vehicles. “Why does a 1.0-liter flex-fuel combustion vehicle pay 7% IPI and an electric or hybrid vehicle, which is much more efficient and non-polluting, have to pay 13%, 18% or even more?” asked Pedro Bentancourt, vice president of Light Vehicles at ABVE and director of government relations at Nissan do Brasil.

“The ideal would be to zero the IPI on electric and hybrid vehicles. At a minimum, our products should pay the same basic rate already paid by the majority of the market. It’s not just a question of energy efficiency, it’s also a question of public health”, he highlighted.

Electrostations

Other demands advocated by ABVE include: reduction of IPVA (Tax on Motor Vehicles), programs to install electric charging stations on highways, and incentives for the electrification of public fleets and shared service providers. Brazil currently has around 350 charging points on highways and public places, such as shopping malls and gas stations, according to the app from Tupinambá Energia, a startup focused on infrastructure for electrified vehicles.

In November, the association also prepared the ABVE Charter for Electromobility, which proposes a set of measures to support sustainable transportation in cities. The Charter was sent to the main candidates for mayor of 14 Brazilian capitals, before the last elections.

Sustainable trend

Data from Fenabrave indicate that the total number of car and light commercial vehicle registrations fell 26.6% in 2020, compared to 2019 (1.950.889 versus 2.658.692). “Once again, electrified vehicles showed their potential, in clear contrast to the evolution of the entire market,” said Adalberto Maluf, president of ABVE.

“In these times of Covid-19, the Brazilian consumer has made a clear commitment to non-polluting and sustainable vehicles. He chose to protect his health and the health of society,” he concluded.