South America Electric Vehicles Market Size
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Study Period | 2017 - 2030 |
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Base Year For Estimation | 2023 |
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Market Size (2024) | USD 29.8 Billion |
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Market Size (2030) | USD 75.18 Billion |
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Largest Share by Country | Brazil |
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CAGR (2024 - 2030) | 16.67 % |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
South America Electric Vehicles Market Analysis
The South America Electric Vehicles Market size is estimated at 29.8 billion USD in 2024, and is expected to reach 75.18 billion USD by 2030, growing at a CAGR of 16.67% during the forecast period (2024-2030).
29.8 Billion
Market Size in 2024 (USD)
75.18 Billion
Market Size in 2030 (USD)
30.76 %
CAGR (2017-2023)
16.67 %
CAGR (2024-2030)
Largest Segment Segment by Vehicle Body Type
37.37 %
value share, Hatchback, 2023
Hatchbacks dominate the South American market primarily due to their affordability, compact size, and versatility, which are highly valued in urban environments.
Fastest-growing Segment by Vehicle Body Type
67.58 %
Projected CAGR, Medium-duty Commercial Trucks, 2024-2030
Medium-Duty Commercial Trucks are rapidly growing due to increasing demand for efficient urban deliveries, advancements in electric truck technology, and supportive government policies.
Largest Segment by Fuel Category
47.17 %
value share, BEV, 2023
BEVs dominate due to significant government support, expanding charging infrastructure, and increasing consumer preference for zero-emission vehicles.
Largest Country Market
61.31 %
value share, Brazil, 2023
Brazil leads the electric vehicle market due to its large population, significant automotive manufacturing capacity, and strong consumer demand for electric vehicles.
Leading Market Player
83.43 %
market share, BYD Auto Co. Ltd., 2023
BYD Auto Co. Ltd. is the largest player due to its advanced electric vehicle technology, strong manufacturing capabilities, and commitment to expanding its market presence in South America.
The South American EV market is set for substantial growth, propelled by commercial vehicle demand, fuel cost concerns, and supportive government policies
- The South American electric vehicle (EV) market is demonstrating progressive growth and is projected to register a CAGR of 6.98%. Despite starting from a low base and lagging more mature markets like Europe, China, and the United States in terms of sales volume and market penetration, there has been a significant uptick in EV sales driven by various factors. In the face of increasing fuel prices, consumers in South America are shifting toward EVs. Furthermore, the introduction of more affordable EV models and government incentive programs across the continent is facilitating this shift toward electric mobility.
- At the country level, Argentina is leading the way in the EV market. In Brazil, EV sales, including hybrids, jumped significantly in the first half of 2022 despite a decline in overall vehicle sales, which suggests a strong consumer appetite for electric models. Additionally, the sales of light commercial vans are rapidly increasing, with transportation in South America showing high potential for e-mobility adoption. EV sales in Argentina have also been steadily growing over the years, although financial incentives for EV purchases remain limited compared to other countries in the region. In Colombia, the expansion of EVs is supported by a comprehensive package of incentives and discounts for low-emissions vehicle ownership. All these trends reflect a broader pattern of accelerating EV adoption in South America, with expectations for continued growth in the coming years.
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Showcases the varied pace of electric vehicle adoption across South American countries, influenced by policy, infrastructure, and market readiness for sustainable mobility
- The electrification of all vehicles in various South American countries has increased the demand for electric vehicles significantly over the past few years. Growing pollution, an increase in greenhouse gas emissions from conventional fuel vehicles, and government policies for the adoption of EVs have increased the demand for electric vehicles in this region. Brazil has witnessed the highest demand for electric vehicles, followed by Colombia and Argentina. As a result of this, the region witnessed growth and electric vehicle sales by 25,600% during 2017-2023.
- Notably, various companies are launching new models in various South American countries to capture the growing market. For example, in November 2022, American automaker Chevrolet launched its new 2023 electric car model, Bolt, in Colombia. The car is equipped with a 65-kWh battery, providing a maximum range of 456 kilometers on a single charge. The car is offered at a price tag of USD 40,690. Such launches in various countries falling under the region are expected to accelerate the South American electric vehicle market.
- The proactive policies and incentive programs of regional governments are propelling the push for vehicle electrification in South America. Notably, Colombia is leveraging incentives and subsidies, with a target of 600,000 EVs on its roads by 2030, aiming to combat carbon emissions. With such initiatives in place, the demand for EVs in South America is expected to witness a notable growth rate during 2024-2030.
South America Electric Vehicles Market Trends
Surging demand and government incentives propel South America's electric vehicle market
- Countries like Brazil and Argentina in South America show significant potential in the automobile market. The South American vehicle industry has witnessed notable growth in recent years. Notably, the region has seen a rising demand for electric vehicles (EVs), especially in the passenger car segment. This surge can be attributed to factors like heightened awareness, growing environmental concerns, and governmental initiatives promoting EV adoption. In fact, EV sales in the region saw a notable increase, growing by 17.95% in 2022 compared to 2021.
- South America, with its diverse markets, is poised for a surge in electric vehicles. Brazil, in particular, is eyeing a shift toward electric buses, driven by its focus on renewable power generation and its abundant reserves of niobium and lithium, crucial for EV battery development. A significant move in this direction came in December 2022 when Sao Paulo banned diesel bus purchases and announced plans to deploy 2600 electric buses by 2024-end. Similar trends in other South American nations are expected to drive vehicle electrification from 2024 to 2030.
- Government policies and incentive programs across South American nations are set to be key drivers for vehicle electrification in the region. Tax benefits, for instance, are playing a pivotal role. Colombia's government, for instance, is leveraging incentives and subsidies with an ambitious target of putting 600,000 EVs on its roads by 2030, aiming to tackle carbon emissions. With similar initiatives anticipated in other South American countries, the sales of EVs are expected to witness a surge from 2024 to 2030.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- South America's demographic narrative, represented by Brazil and Colombia, showcases a story of consistent growth, with Brazil experiencing a pronounced surge
- Brazil and Colombia are expected to see an increase in consumer spending for vehicle purchases (CVP), indicating a recovering automotive market and growing consumer confidence
- From 2017 to 2022, South American auto loan interest rates unveiled a diverse economic landscape. Argentina's rates, marked by turbulence, underscore the nation's economic instability. Meanwhile, Brazil's rates, though initially high, witnessed a decline, signaling stabilization efforts. In contrast, Colombia's rates remained moderate, mirroring an upward trajectory in its economic conditions
- South America is steadily building its EV infrastructure, with both slow and fast charging stations witnessing significant growth
- South America's electrification in the automotive sector shows fluctuating trends across vehicle segments
- South America witnessed significant fluctuations in diesel and gasoline prices due to the influence of external factors
- During 2017-2030, Brazil and Colombia displayed contrasting economic paths. While both faced downturns around 2020, Brazil's GDP per capita showed recovery by 2023, whereas Colombia witnessed a slight decline
- Projections indicate a trend toward economic stabilization and controlled inflation in the region, highlighting a concerted push to restore equilibrium and foster growth
- South American MaaS Sector: The shared mobility sector is witnessing a surge in opportunities and showcasing remarkable resilience
- South America’s surging demand for electric vehicle batteries: falling costs and strategic alliances
- As economic conditions stabilize and regional trade agreements become more favorable, South America's used car market is set to experience sustained growth
- Brazil leads South America's hybrid and electric vehicle production, with Chevrolet, Honda, and VW as major players and a notable surge in Toyota's output.
South America Electric Vehicles Industry Overview
The South America Electric Vehicles Market is fairly consolidated, with the top five companies occupying 88.99%. The major players in this market are Bayerische Motoren Werke AG, BYD Auto Co. Ltd., Daimler AG (Mercedes-Benz AG), Renault do Brasil S/A and Toyota Motor Corporation (sorted alphabetically).
South America Electric Vehicles Market Leaders
Bayerische Motoren Werke AG
BYD Auto Co. Ltd.
Daimler AG (Mercedes-Benz AG)
Renault do Brasil S/A
Toyota Motor Corporation
Other important companies include Audi AG, Beiqi Foton Motor Co. Ltd., Chery Automobile Co. Ltd., Saic Motor Corporation Ltd. (MG Motors), Volvo Group.
*Disclaimer: Major Players sorted in alphabetical order.
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South America Electric Vehicles Market News
- August 2023: BYD introduced the new all-electric BYD SEAL D-segment sedan to European consumers. Deliveries of the BYD SEAL will commence in Q4 2023, and final prices will be announced later.
- August 2023: Toyota Argentina announced that as it begins production of the Hiace in 2024 at its plant in Zárate, it will continue and enlarge the mission of the Conversions area, dedicated to designing and producing vehicles adapted to the specific needs of multiple customers.
- August 2023: The Dubai Police Department has placed an electric Mercedes EQS 580 on its fleet of luxury cars and environmentally conscious vehicles to patrol the streets.
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South America Electric Vehicles Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. KEY INDUSTRY TRENDS
- 4.1 Population
- 4.2 GDP Per Capita
- 4.3 Consumer Spending For Vehicle Purchase (cvp)
- 4.4 Inflation
- 4.5 Interest Rate For Auto Loans
- 4.6 Shared Rides
- 4.7 Impact Of Electrification
- 4.8 EV Charging Station
- 4.9 Battery Pack Price
- 4.10 New Xev Models Announced
- 4.11 Used Car Sales
- 4.12 Fuel Price
- 4.13 Oem-wise Production Statistics
- 4.14 Regulatory Framework
- 4.15 Value Chain & Distribution Channel Analysis
5. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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5.1 Vehicle Type
- 5.1.1 Commercial Vehicles
- 5.1.2 Passenger Vehicles
- 5.1.3 Two-Wheelers
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5.2 Fuel Category
- 5.2.1 BEV
- 5.2.2 FCEV
- 5.2.3 HEV
- 5.2.4 PHEV
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5.3 Country
- 5.3.1 Brazil
6. COMPETITIVE LANDSCAPE
- 6.1 Key Strategic Moves
- 6.2 Market Share Analysis
- 6.3 Company Landscape
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6.4 Company Profiles
- 6.4.1 Audi AG
- 6.4.2 Bayerische Motoren Werke AG
- 6.4.3 Beiqi Foton Motor Co. Ltd.
- 6.4.4 BYD Auto Co. Ltd.
- 6.4.5 Chery Automobile Co. Ltd.
- 6.4.6 Daimler AG (Mercedes-Benz AG)
- 6.4.7 Renault do Brasil S/A
- 6.4.8 Saic Motor Corporation Ltd. (MG Motors)
- 6.4.9 Toyota Motor Corporation
- 6.4.10 Volvo Group
- *List Not Exhaustive
7. KEY STRATEGIC QUESTIONS FOR VEHICLES CEOS
8. APPENDIX
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8.1 Global Overview
- 8.1.1 Overview
- 8.1.2 Porter’s Five Forces Framework
- 8.1.3 Global Value Chain Analysis
- 8.1.4 Market Dynamics (DROs)
- 8.2 Sources & References
- 8.3 List of Tables & Figures
- 8.4 Primary Insights
- 8.5 Data Pack
- 8.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, POPULATION YOY GROWTH RATE, UNITS, 2017 - 2030
- Figure 2:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2030
- Figure 3:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2030
- Figure 4:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2030
- Figure 5:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, INTEREST RATE FOR AUTO LOANS YOY GROWTH RATE, PERCENTAGE, 2017 - 2022
- Figure 6:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2030
- Figure 7:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2030
- Figure 8:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2022
- Figure 9:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2030
- Figure 10:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, NEW XEV MODELS ANNOUNCED, VOLUME, YOY GROWTH RATE, UNITS, 2023 - 2027
- Figure 11:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2030
- Figure 12:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2022
- Figure 13:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, BY ARGENTINA, BY VOLUME IN UNITS, 2017 - 2030
- Figure 14:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, BY ARGENTINA, BY VALUE IN USD, 2017 - 2030
- Figure 15:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET MARKET, SHARE(%), BY VEHICLE BODY TYPE, 2017 - 2030
- Figure 16:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, BY BRAZIL, BY VOLUME IN UNITS, 2017 - 2030
- Figure 17:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, BY BRAZIL, BY VALUE IN USD, 2017 - 2030
- Figure 18:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET MARKET, SHARE(%), BY VEHICLE BODY TYPE, 2017 - 2030
- Figure 19:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, BY REST-OF-SOUTH AMERICA, BY VOLUME IN UNITS, 2017 - 2030
- Figure 20:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, BY REST-OF-SOUTH AMERICA, BY VALUE IN USD, 2017 - 2030
- Figure 21:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET MARKET, SHARE(%), BY VEHICLE BODY TYPE, 2017 - 2030
- Figure 22:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, MOST ACTIVE COMPANIES, BY NUMBER OF STRATEGIC MOVES, 2017 - 2030
- Figure 23:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET, MOST ADOPTED STRATEGIES, 2017 - 2030
- Figure 24:
- SOUTH AMERICA ELECTRIC VEHICLES MARKET SHARE(%), BY MAJOR PLAYERS, 2021
South America Electric Vehicles Industry Segmentation
Commercial Vehicles, Passenger Vehicles, Two-Wheelers are covered as segments by Vehicle Type. BEV, FCEV, HEV, PHEV are covered as segments by Fuel Category. Brazil are covered as segments by Country.
- The South American electric vehicle (EV) market is demonstrating progressive growth and is projected to register a CAGR of 6.98%. Despite starting from a low base and lagging more mature markets like Europe, China, and the United States in terms of sales volume and market penetration, there has been a significant uptick in EV sales driven by various factors. In the face of increasing fuel prices, consumers in South America are shifting toward EVs. Furthermore, the introduction of more affordable EV models and government incentive programs across the continent is facilitating this shift toward electric mobility.
- At the country level, Argentina is leading the way in the EV market. In Brazil, EV sales, including hybrids, jumped significantly in the first half of 2022 despite a decline in overall vehicle sales, which suggests a strong consumer appetite for electric models. Additionally, the sales of light commercial vans are rapidly increasing, with transportation in South America showing high potential for e-mobility adoption. EV sales in Argentina have also been steadily growing over the years, although financial incentives for EV purchases remain limited compared to other countries in the region. In Colombia, the expansion of EVs is supported by a comprehensive package of incentives and discounts for low-emissions vehicle ownership. All these trends reflect a broader pattern of accelerating EV adoption in South America, with expectations for continued growth in the coming years.
| Vehicle Type | Commercial Vehicles |
| Passenger Vehicles | |
| Two-Wheelers | |
| Fuel Category | BEV |
| FCEV | |
| HEV | |
| PHEV | |
| Country | Brazil |
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Market Definition
- Vehicle Type - The category includes passenger cars, commercial vehicles, and two-wheelers.
- Vehicle Body Type - TUnder Passenger Cars, the category includes Hatchbacks, Sedans, Sports Utility Vehicles, and Multi-purpose Vehicles; for Commercial Vehicles, it covers Light Commercial Pick-up Trucks, Light Commercial Vans, Medium-duty Commercial Trucks, Heavy-duty Commercial Trucks, and Medium and Heavy Duty Buses; and for Two-Wheelers, it encompasses Scooters and Motorcycles.
- Fuel Category - The category exclusively covers electric propulsion systems, including various types such as HEV (Hybrid Electric Vehicles), PHEV (Plug-in Hybrid Electric Vehicles), BEV (Battery Electric Vehicles), and FCEV (Fuel Cell Electric Vehicles).
| Keyword | Definition |
|---|---|
| Electric Vehicle (EV) | A vehicle which uses one or more electric motors for propulsion. Includes cars, buses, and trucks. This term includes all-electric vehicles or battery electric vehicles and plug-in hybrid electric vehicles. |
| BEV | A BEV relies completely on a battery and a motor for propulsion. The battery in the vehicle must be charged by plugging it into an outlet or public charging station. BEVs do not have an ICE and hence are pollution-free. They have a low cost of operation and reduced engine noise as compared to conventional fuel engines. However, they have a shorter range and higher prices than their equivalent gasoline models. |
| PEV | A plug-in electric vehicle is an electric vehicle that can be externally charged and generally includes all-electric vehicles as well as plug-in hybrids. |
| Plug-in Hybrid EV | A vehicle that can be powered either by an ICE or an electric motor. In contrast to normal hybrid EVs, they can be charged externally. |
| Internal combustion engine | An engine in which the burning of fuels occurs in a confined space called a combustion chamber. Usually run with gasoline/petrol or diesel. |
| Hybrid EV | A vehicle powered by an ICE in combination with one or more electric motors that use energy stored in batteries. These are continually recharged with power from the ICE and regenerative braking. |
| Commercial Vehicles | Commercial vehicles are motorized road vehicles designed for transporting people or goods. The category includes light commercial vehicles (LCVs) and medium and heavy-duty vehicles (M&HCV). |
| Passenger Vehicles | Passenger cars are electric motor– or engine-driven vehicles with at least four wheels. These vehicles are used for the transport of passengers and comprise no more than eight seats in addition to the driver’s seat. |
| Light Commercial Vehicles | Commercial vehicles that weigh less than 6,000 lb (Class 1) and in the range of 6,001–10,000 lb (Class 2) are covered under this category. |
| M&HDT | Commercial vehicles that weigh in the range of 10,001–14,000 lb (Class 3), 14,001–16,000 lb (Class 4), 16,001–19,500 lb (Class 5), 19,501–26,000 lb (Class 6), 26,001–33,000 lb (Class 7) and above 33,001 lb (Class 8) are covered under this category. |
| Bus | A mode of transportation that typically refers to a large vehicle designed to carry passengers over long distances. This includes transit bus, school bus, shuttle bus, and trolleybuses. |
| Diesel | It includes vehicles that use diesel as their primary fuel. A diesel engine vehicle have a compression-ignited injection system rather than the spark-ignited system used by most gasoline vehicles. In such vehicles, fuel is injected into the combustion chamber and ignited by the high temperature achieved when gas is greatly compressed. |
| Gasoline | It includes vehicles that use gas/petrol as their primary fuel. A gasoline car typically uses a spark-ignited internal combustion engine. In such vehicles, fuel is injected into either the intake manifold or the combustion chamber, where it is combined with air, and the air/fuel mixture is ignited by the spark from a spark plug. |
| LPG | It includes vehicles that use LPG as their primary fuel. Both dedicated and bi-fuel LPG vehicles are considered under the scope of the study. |
| CNG | It includes vehicles that use CNG as their primary fuel. These are vehicles that operate like gasoline-powered vehicles with spark-ignited internal combustion engines. |
| HEV | All the electric vehicles that use batteries and an internal combustion engine (ICE) as their primary source for propulsion are considered under this category. HEVs generally use a diesel-electric powertrain and are also known as hybrid diesel-electric vehicles. An HEV converts the vehicle momentum (kinetic energy) into electricity that recharges the battery when the vehicle slows down or stops. The battery of HEV cannot be charged using plug-in devices. |
| PHEV | PHEVs are powered by a battery as well as an ICE. The battery can be charged through either regenerative breaking using the ICE or by plugging into some external charging source. PHEVs have a better range than BEVs but are comparatively less eco-friendly. |
| Hatchback | These are compact-sized cars with a hatch-type door provided at the rear end. |
| Sedan | These are usually two- or four-door passenger cars, with a separate area provided at the rear end for luggage. |
| SUV | Popularly known as SUVs, these cars come with four-wheel drive, and usually have high ground clearance. These cars can also be used as off-road vehicles. |
| MPV | These are multi-purpose vehicles (also called minivans) designed to carry a larger number of passengers. They carry between five and seven people and have room for luggage too. They are usually taller than the average family saloon car, to provide greater headroom and ease of access, and they are usually front-wheel drive. |
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Research Methodology
Mordor Intelligence follows a four-step methodology in all its reports.
- Step-1: Identify Key Variables: To build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built based on these variables.
- Step-2: Build a Market Model: Market-size estimations for the historical and forecast years have been provided in revenue and volume terms. Market revenue is calculated by multiplying the sales volume with their respective average selling price (ASP). While estimating ASP factors like average inflation, market demand shift, manufacturing cost, technological advancement, and varying consumer preference, among others have been taken into account.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms.
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