Electric Vehicles - South America

South America

In 2024, it is projected that the revenue in the Electric Vehicles market in South America will reach a staggering €5,738.0m.
Looking ahead, the market is expected to show a promising annual growth rate (CAGR 2024-2029) of 5.70%, resulting in a projected market volume of €7,570.0m by 2029.
By that time, the unit sales of Electric Vehicles market in South America are expected to reach 84.67k vehicles.
Furthermore, in 2024, the volume weighted average price of Electric Vehicles market in South America is expected to amount to €94.0k.
When examining the international perspective, it becomes evident that China will generate the most revenue in the Electric Vehicles market.
In 2024, China is projected to generate a massive €349,100m in revenue.
In South America, Brazil is leading the electric vehicle market with a significant increase in sales and government incentives supporting the adoption of zero-emission vehicles.

Key regions: United States, Germany, Netherlands, China, United Kingdom

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Analyst Opinion

The Electric Vehicles market in South America is experiencing significant growth and development.

Customer preferences: Customers in South America are increasingly showing a preference for electric vehicles due to their environmental benefits and cost savings. With growing concerns about climate change and air pollution, consumers are becoming more conscious about their carbon footprint and are looking for sustainable transportation options. Electric vehicles offer a greener alternative to traditional gasoline-powered cars, as they produce zero emissions during operation. Additionally, electric vehicles have lower operating costs compared to conventional vehicles, as they require less maintenance and have lower fuel costs.

Trends in the market: One of the key trends in the Electric Vehicles market in South America is the increasing availability of charging infrastructure. As more electric vehicles enter the market, there is a growing need for charging stations to support their use. Governments and private companies are investing in the installation of charging infrastructure across the region, making it more convenient for electric vehicle owners to charge their vehicles. This trend is driving the adoption of electric vehicles, as consumers feel more confident about the availability of charging options. Another trend in the market is the introduction of government incentives and subsidies for electric vehicles. Governments in South America are implementing policies to promote the adoption of electric vehicles, such as tax incentives, rebates, and subsidies. These incentives make electric vehicles more affordable and attractive to consumers, encouraging them to make the switch from conventional vehicles. The availability of government support is playing a crucial role in driving the growth of the Electric Vehicles market in South America.

Local special circumstances: South America has a unique set of circumstances that contribute to the development of the Electric Vehicles market. One of the factors is the abundance of renewable energy resources in the region. Countries like Brazil and Argentina have significant renewable energy potential, particularly in the form of hydroelectric power. This makes electric vehicles even more environmentally friendly, as they can be powered by clean and renewable energy sources. Additionally, South America has a high urbanization rate, with a large percentage of the population living in cities. This creates a demand for efficient and sustainable transportation options. Electric vehicles offer a solution to the challenges of urban mobility, as they produce less noise and air pollution compared to gasoline-powered vehicles. The compact size of electric vehicles also makes them well-suited for navigating through congested city streets.

Underlying macroeconomic factors: The Electric Vehicles market in South America is also influenced by macroeconomic factors such as economic growth and government policies. As the region continues to experience economic growth, there is an increase in disposable income and purchasing power, which allows consumers to consider electric vehicles as a viable option. Additionally, governments in South America are implementing policies to reduce greenhouse gas emissions and promote sustainable development. These policies create a favorable environment for the Electric Vehicles market to thrive. In conclusion, the Electric Vehicles market in South America is growing due to customer preferences for sustainable transportation, the availability of charging infrastructure, government incentives, and unique local circumstances. The region's abundance of renewable energy resources and high urbanization rate contribute to the development of the market. Furthermore, macroeconomic factors such as economic growth and government policies play a significant role in driving the adoption of electric vehicles in South America.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).