Market Trends of Electric Vehicle (EV) Fluids Industry
Hybrid Electric Vehicles Propulsion Type Segment to Dominate the Market
- A hybrid electric vehicle is a type of vehicle that combines a conventional internal combustion engine system with an electric propulsion system. According to the Society of Automotive Engineers, a hybrid vehicle can be defined as a vehicle with two or more energy storage systems.
- In 2021, all major vehicle markets in the region reported an increase in the sales of Electric Vehicle (EV), which was expected to continue at a faster pace in the coming years. By 2030, the sales of hybrid electric vehicles in the region are expected to reach 488.9 thousand units, followed by 405.2 thousand units sale of plug-in hybrid electric vehicles, and 123.7 thousand units sale of battery electric vehicles.
- There is an expectation of commercialization of approximately 1 million electrified vehicles in the South America region and the total electrified vehicles in operation are expected to be 5.4 million by 2030.
- According to the local business association, Andi, and the federal merchants association, Fenalco, in 2021, EV sales in Colombia increased by 60%. Moreover, the combined sales of EVs and hybrids (HEV) also increased significantly jumping almost 200% to around 18,000 units.
- In 2021, the sales in Argentina doubled when compared to the value of the previous year. The country sold nearly 5,900 units of electric and hybrid vehicles. During the first six months of 2022, 140,049 of total vehicles were sold in Argentina, out of which 3,371 vehicle sales were HEVs.
- Therefore, all the aforementioned pointers are expected to grow the demand for coolants product type of EV fluids over the forecast period.
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Brazil to Dominate the Market
- Brazil is expected to dominate the electric vehicle (EV) fluids market in the South America region due to the increasing demand for electric vehicles in the country. Due to the environmental, social, and governance (ESG) agenda of green logistics followed by Brazil, there is a significant growth in the sales of electric vehicles in the country.
- The National Association of Motor Vehicle Manufacturers' statistics report indicates that in 2021, sales of hybrid electric vehicles in Brazil skyrocketed and reached nearly 35 thousand units, an increase of 77% over the previous year.
- According to a study commissioned by GM South America, Brazil follows the global trend of a continuous increase in the adoption of zero-emission technology, and is expected to reach 5.5 million electric vehicles by 2035.
- 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.
- Due to the policies under Rota 2030, more and more companies and individuals are turning to electric vehicles. Data obtained for 2021 shows that more than 7,000 new electric vehicles were registered in the January-April period alone, and the year represents the highest number of electric car sales ever recorded.
- In 2021, Nissan and Porsche dominated the electric vehicle sales in Brazil. Nissan sold 439 units of the Leaf Tekna in South American countries, whereas Porsche sold around 379 units of its Taycan model in the same period.
- In 2021, the Brazilian market witnessed a growth in the sales of electric vehicles. According to the Brazilian Association of Electric Vehicles (ABVE), 34,990 units were sold, and 79,800 cars were in circulation. In 2022, the Brazilian automotive sector reached 100 thousand electrified cars on the streets.
- All the aforementioned factors contribute to the growth of hybrid electric vehicles, which further drives the market for electric vehicle (EV) fluids over the forecast period.
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