Brazil is one of the most committed countries in the transition to sustainable mobility globally. Institutional support for electric mobility and the promotion of electric vehicles have been key to its development, as evidenced by data showing the unprecedented growth of the sector.
The electric mobility sector in Brazil has a moderate presence, although the production and use of electric cars continues to grow as public awareness of the importance of reducing greenhouse gas emissions increases. Electric vehicles are currently perceived among the general public as a complement to traditional cars and not as a substitute, at least for the time being. However, the institutional support received and the development of the sector are enabling Brazil to move towards a more sustainable mobility.
What is Brazil doing to promote electric vehicles?
Over the last few years, Brazil has made significant progress in order to implement and promote the transition to electric vehicles through several laws and programs related to electric mobility.
Among these initiatives, the PLS 454/2017 bill stands out. This law, aimed at reducing polluting emissions from motor vehicles, also establishes a ban on the sale of fossil fuel-powered cars by 2060. In 2018, the Senate also passed a bill requiring electric companies to install charging points for electric cars in cities. Moreover, in May of the same year, the government began working on a National Electricity Policy.
However, the biggest boost to the development of electric mobility comes from the Rota 2030 plan. Through this program, the Brazilian government promotes the development of R&D projects in the automotive sector, encourages the transition to sustainable mobility and provides incentives to both companies and vehicle owners to promote the growth of the sector. On the other hand, since 2015, electric vehicles are exempt from the 35% import tariff and hybrid vehicles have a reduction ranging from 0% to 7%, depending on the gasoline engine capacity and energy efficiency.
Industry evolution
The electric mobility sector in Brazil is experiencing unprecedented growth. Every year, electric vehicle registrations multiply thanks to the drop in the price of electricity, the development of renewable energies and the population’s growing awareness of climate change. The evolution of the sector had its turning point in 2018 with the implementation of the Rota 2030 Plan: since that year, the number of new electric car registrations rose from 3,970 to 19,745 in 2020 in response to the numerous advantages that the plan offered to buyers.
Moreover, there is a growing trend in the electric mobility sector in Brazil: the data obtained for 2021 shows that more than 7,000 new electric vehicles were registered in the January-April period alone. Taking into account the figures recorded over the course of this year, the number of electric vehicles registered in Brazil is expected to exceed 28,000 by the end of the year.
Thanks to public policies that support electrification, such as Rota 2030, more and more companies and individuals are turning to electric vehicles. If forecasts are met, 2021 will represent the year with the highest number of electric car sales ever recorded. Brazil is a perfect example of how supporting sustainability is an important step towards a more environmentally friendly world.
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