South America Electric Bus Market Size
| Icons | Lable | Value |
|---|---|---|
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Study Period | 2017 - 2030 |
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Market Size (2024) | USD 0.43 Billion |
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Market Size (2030) | USD 1.23 Billion |
|
Largest Share by Fuel Category | BEV |
|
|
CAGR (2024 - 2030) | 19.41 % |
|
Largest Share by Country | Brazil |
Major Players |
||
|
||
|
*Disclaimer: Major Players sorted in alphabetical order. |
South America Electric Bus Market Analysis
The South America Electric Bus Market size is estimated at 0.43 billion USD in 2024, and is expected to reach 1.23 billion USD by 2030, growing at a CAGR of 19.41% during the forecast period (2024-2030).
0.43 Billion
Market Size in 2024 (USD)
1.23 Billion
Market Size in 2030 (USD)
61.63 %
CAGR (2017-2023)
19.41 %
CAGR (2024-2030)
Largest Segment by Fuel Category
82.39 %
value share, BEV, 2023
BEVs dominate due to government incentives, lower operational costs, and urban demand for cleaner public transportation options in South America.
Fastest-growing Segment by Fuel Category
20.50 %
Projected CAGR, BEV, 2024-2030
BEVs are rapidly growing due to strong government support, expanding charging infrastructure, and increasing environmental awareness among urban populations.
Largest Country Market
32.23 %
value share, Brazil, 2023
Brazil leads the electric bus market due to significant investments in public transportation, government support for EVs, and a large urban population requiring efficient transit solutions.
Fastest-growing Segment by Country
19.78 %
Projected CAGR, Brazil, 2024-2030
Brazil is the fastest-growing segment due to increasing investment in electric bus fleets, government incentives, and expanding urban infrastructure.
Leading Market Player
50.81 %
market share, Byd Auto Industry Company Limited, 2023
Commitment to innovation and development activities, various electric bus models offerings, and well-established network keeps Byd in top in South America electric bus market.
South American E-bus market: Paving the way for greener urban mobility
- BYD is one of the top companies in the electric bus market. The company continuously creates brand-new electric buses with cutting-edge technologies that meet various standards. For instance, in March 2021, BYD announced the arrival of the country's first locally produced all-electric bus in Campos. The variant is 22 meters long and has lithium iron phosphate batteries with a three-hour charge capacity that allows for a 250 km range. The bus has 168 seats. BYD also makes significant investments in the globalization of its corporate operations. With 386 all-electric buses in Chile as of October 2021, BYD held about 74% market share for electric buses in Chile.
- Over 390,000 buses circulate across Brazil, but a meager 247 are electric. Only eight cities in Brazil have electric buses, with only a handful in each. Even cities that have been most enthusiastic about electrification, such as São Paulo, where a recent law established a goal of zero pollutants from transport within 20 years, have been slow to increase their fleets.
- Brazil holds potential demand for electric buses as the country is focusing on the adoption of more renewable power generation, which may utilize the country’s large niobium and lithium reserves, a crucial factor for EV batteries’ development. São Paulo’s public transport authority, SPTrans, plans to deploy 7,000 electric buses on the streets over the next 10 years.
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The adoption of electric buses in South American countries is uneven but promising, indicating a regional dedication to cleaner public transportation
- South America has the highest use of buses per person globally. With a growing Bus Rapid Transit System, nearly 19 million passengers have been identified as traveling through BRT services across several cities in the region. To support this growing demand, many municipalities in the region have started working on expanding public transit options into less-served areas, where cleaner buses may play a vital role in filling the gaps.
- Several countries in the region are adopting measures to meet the rising demand for electric buses. In August 2022, Marcopolo announced the series production of its first electric bus with its own chassis. Marcopolo will produce 30 of the new Attivi electric buses that will be deployed in Brazil and later to other countries. Such activities are expected to attract customers, which further will increase the demand for electric buses across the region.
- Various states in various countries across the region are planning to deploy electric buses to increase sustainable transportation and cut down the carbon emissions. In December 2022, Sao Paulo, Brazil, announced to ban the diesel and planned to deploy 2600 electric buses by the end of 2024. The deployment of the electric buses will boost the electric bus industry in Brazil, which further will enhance electric mobility across the region.
South America Electric Bus 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
- The South American market for medium and heavy-duty hybrid and electric buses is showing signs of recovery after a period of decline. The recent production volume of 31,777 units indicates a renewed interest in sustainable transportation
- 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
- South America witnessed significant fluctuations in diesel and gasoline prices due to the influence of external factors
South America Electric Bus Industry Overview
The South America Electric Bus Market is fairly consolidated, with the top five companies occupying 92.46%. The major players in this market are Beiqi Foton Motor Co. Ltd., Byd Auto Industry Company Limited, ELETRA Industrial LTDA, Shanghai Sunwin Bus Corporation.Ltd. and Zhengzhou Yutong Bus Co. Ltd. (sorted alphabetically).
South America Electric Bus Market Leaders
Beiqi Foton Motor Co. Ltd.
Byd Auto Industry Company Limited
ELETRA Industrial LTDA
Shanghai Sunwin Bus Corporation.Ltd.
Zhengzhou Yutong Bus Co. Ltd.
Other important companies include Anhui Ankai Automobile Co. Ltd., Higer Bus Company Ltd., King Long United Automotive Industry Co. Ltd., Volvo Group, Zhongtong Bus Holding Co. Ltd..
*Disclaimer: Major Players sorted in alphabetical order.
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South America Electric Bus Market News
- September 2023: Volvo Energy signed a letter of intent with Connected Energy with the ambition to jointly develop a battery energy storage system (BESS).
- September 2023: Yutong announced that it held a shipping ceremony for 87 apron buses exported from China to Saudi Arabia in the Yutong New Energy Plant. It is the largest batch of apron buses exported from China.
- September 2023: Volvo Buses signed an agreement with MCV (Manufacturing Commercial Vehicles) for the manufacture of bodies for the Volvo 7900 Electric and Volvo 7900 Electric Artic buses.
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South America Electric Bus Market Report - Table of Contents
EXECUTIVE SUMMARY & KEY FINDINGS
REPORT OFFERS
1. INTRODUCTION
1.1. Study Assumptions & Market Definition
1.2. Scope of the Study
1.3. Research Methodology
2. KEY INDUSTRY TRENDS
2.1. Population
2.2. GDP Per Capita
2.3. Consumer Spending For Vehicle Purchase (cvp)
2.4. Inflation
2.5. Interest Rate For Auto Loans
2.6. Shared Rides
2.7. Impact Of Electrification
2.8. EV Charging Station
2.9. Battery Pack Price
2.10. New Xev Models Announced
2.11. Fuel Price
2.12. Oem-wise Production Statistics
2.13. Regulatory Framework
2.14. Value Chain & Distribution Channel Analysis
3. MARKET SEGMENTATION (includes market size in Value in USD and Volume, Forecasts up to 2030 and analysis of growth prospects)
3.1. Fuel Category
3.1.1. BEV
3.1.2. HEV
3.2. Country
3.2.1. Argentina
3.2.2. Brazil
3.2.3. Rest-of-South America
4. COMPETITIVE LANDSCAPE
4.1. Key Strategic Moves
4.2. Market Share Analysis
4.3. Company Landscape
4.4. Company Profiles
4.4.1. Anhui Ankai Automobile Co. Ltd.
4.4.2. Beiqi Foton Motor Co. Ltd.
4.4.3. Byd Auto Industry Company Limited
4.4.4. ELETRA Industrial LTDA
4.4.5. Higer Bus Company Ltd.
4.4.6. King Long United Automotive Industry Co. Ltd.
4.4.7. Shanghai Sunwin Bus Corporation.Ltd.
4.4.8. Volvo Group
4.4.9. Zhengzhou Yutong Bus Co. Ltd.
4.4.10. Zhongtong Bus Holding Co. Ltd.
5. KEY STRATEGIC QUESTIONS FOR VEHICLES CEOS
6. APPENDIX
6.1. Global Overview
6.1.1. Overview
6.1.2. Porter’s Five Forces Framework
6.1.3. Global Value Chain Analysis
6.1.4. Market Dynamics (DROs)
6.2. Sources & References
6.3. List of Tables & Figures
6.4. Primary Insights
6.5. Data Pack
6.6. Glossary of Terms
List of Tables & Figures
- Figure 1:
- SOUTH AMERICA ELECTRIC BUS 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 BUS 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 BUS MARKET, NEW XEV MODELS ANNOUNCED, VOLUME, YOY GROWTH RATE, UNITS, 2023 - 2027
- Figure 11:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2022
- Figure 12:
- SOUTH AMERICA MARKET, UNDEFINED YOY GROWTH RATE, 2017 - 2022
- Figure 13:
- SOUTH AMERICA ELECTRIC BUS MARKET, VOLUME IN UNITS, 2017 - 2030
- Figure 14:
- SOUTH AMERICA ELECTRIC BUS MARKET, VALUE IN USD, 2017 - 2030
- Figure 15:
- SOUTH AMERICA ELECTRIC BUS MARKET, BY FUEL CATEGORY, BY VOLUME IN UNITS, 2017 - 2030
- Figure 16:
- SOUTH AMERICA ELECTRIC BUS MARKET, BY FUEL CATEGORY, BY VALUE IN USD, 2017 - 2030
- Figure 17:
- SOUTH AMERICA ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 18:
- SOUTH AMERICA ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 19:
- SOUTH AMERICA ELECTRIC BUS MARKET, BY COUNTRY, BY VOLUME IN UNITS, 2017 - 2030
- Figure 20:
- SOUTH AMERICA ELECTRIC BUS MARKET, BY COUNTRY, BY VALUE IN USD, 2017 - 2030
- Figure 21:
- SOUTH AMERICA ELECTRIC BUS MARKET MARKET, SHARE(%), BY COUNTRY, 2017 - 2030
- Figure 22:
- SOUTH AMERICA ELECTRIC BUS MARKET MARKET, SHARE(%), BY COUNTRY, 2017 - 2030
- Figure 23:
- SOUTH AMERICA ELECTRIC BUS MARKET, BY ARGENTINA, BY VOLUME IN UNITS, 2017 - 2030
- Figure 24:
- SOUTH AMERICA ELECTRIC BUS MARKET, BY ARGENTINA, BY VALUE IN USD, 2017 - 2030
- Figure 25:
- SOUTH AMERICA ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 26:
- SOUTH AMERICA ELECTRIC BUS MARKET, BY BRAZIL, BY VOLUME IN UNITS, 2017 - 2030
- Figure 27:
- SOUTH AMERICA ELECTRIC BUS MARKET, BY BRAZIL, BY VALUE IN USD, 2017 - 2030
- Figure 28:
- SOUTH AMERICA ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 29:
- SOUTH AMERICA ELECTRIC BUS MARKET, BY REST-OF-SOUTH AMERICA, BY VOLUME IN UNITS, 2017 - 2030
- Figure 30:
- SOUTH AMERICA ELECTRIC BUS MARKET, BY REST-OF-SOUTH AMERICA, BY VALUE IN USD, 2017 - 2030
- Figure 31:
- SOUTH AMERICA ELECTRIC BUS MARKET MARKET, SHARE(%), BY FUEL CATEGORY, 2017 - 2030
- Figure 32:
- SOUTH AMERICA ELECTRIC BUS MARKET, MOST ACTIVE COMPANIES, BY NUMBER OF STRATEGIC MOVES, 2017 - 2030
- Figure 33:
- SOUTH AMERICA ELECTRIC BUS MARKET, MOST ADOPTED STRATEGIES, 2017 - 2030
- Figure 34:
- SOUTH AMERICA ELECTRIC BUS MARKET SHARE(%), BY MAJOR PLAYERS, 2021
South America Electric Bus Industry Segmentation
BEV, HEV are covered as segments by Fuel Category. Argentina, Brazil, Rest-of-South America are covered as segments by Country.
- BYD is one of the top companies in the electric bus market. The company continuously creates brand-new electric buses with cutting-edge technologies that meet various standards. For instance, in March 2021, BYD announced the arrival of the country's first locally produced all-electric bus in Campos. The variant is 22 meters long and has lithium iron phosphate batteries with a three-hour charge capacity that allows for a 250 km range. The bus has 168 seats. BYD also makes significant investments in the globalization of its corporate operations. With 386 all-electric buses in Chile as of October 2021, BYD held about 74% market share for electric buses in Chile.
- Over 390,000 buses circulate across Brazil, but a meager 247 are electric. Only eight cities in Brazil have electric buses, with only a handful in each. Even cities that have been most enthusiastic about electrification, such as São Paulo, where a recent law established a goal of zero pollutants from transport within 20 years, have been slow to increase their fleets.
- Brazil holds potential demand for electric buses as the country is focusing on the adoption of more renewable power generation, which may utilize the country’s large niobium and lithium reserves, a crucial factor for EV batteries’ development. São Paulo’s public transport authority, SPTrans, plans to deploy 7,000 electric buses on the streets over the next 10 years.
| Fuel Category | |
| BEV | |
| HEV |
| Country | |
| Argentina | |
| Brazil | |
| Rest-of-South America |
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Market Definition
- Vehicle Type - The category includes Medium and Heavy Duty Buses.
- Vehicle Body Type - This include Bus category.
- 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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