Market Size of south america electric vehicles Industry
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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.
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 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 |
South America Electric Vehicles Market Size Summary
The South America electric vehicles market is experiencing significant growth, driven by increasing consumer interest and supportive government policies. Despite starting from a lower base compared to more mature markets like Europe and China, the region is witnessing a notable shift towards electric mobility. Factors such as rising fuel prices, the introduction of affordable EV models, and government incentives are encouraging consumers to adopt electric vehicles. Argentina is leading the market, with Brazil and Colombia also showing strong demand. The expansion of EVs is further supported by comprehensive incentive programs, particularly in Colombia, which aims to significantly increase the number of EVs on its roads by 2030. This trend is expected to continue, with the market poised for substantial growth in the coming years.
The South American electric vehicle market is characterized by a growing demand for electrification, driven by environmental concerns and government initiatives. Brazil, in particular, is focusing on electric buses, leveraging its renewable energy resources and mineral reserves essential for EV battery production. The region's market is fairly consolidated, with major players like BMW, BYD, Daimler, Renault, and Toyota dominating the landscape. These companies are actively launching new models to capture the expanding market. Government policies, including tax benefits and subsidies, are crucial in propelling the market forward, with expectations of increased EV sales from 2024 to 2030. The market's growth is further supported by the rising awareness of environmental issues and the need to reduce greenhouse gas emissions.
South America Electric Vehicles Market Size - Table of Contents
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1. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
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1.1 Vehicle Type
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1.1.1 Commercial Vehicles
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1.1.2 Passenger Vehicles
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1.1.3 Two-Wheelers
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1.2 Fuel Category
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1.2.1 BEV
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1.2.2 FCEV
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1.2.3 HEV
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1.2.4 PHEV
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1.3 Country
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1.3.1 Brazil
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South America Electric Vehicles Market Size FAQs
How big is the South America Electric Vehicles Market?
The South America Electric Vehicles Market size is expected to reach USD 29.80 billion in 2024 and grow at a CAGR of 16.67% to reach USD 75.18 billion by 2030.
What is the current South America Electric Vehicles Market size?
In 2024, the South America Electric Vehicles Market size is expected to reach USD 29.80 billion.
