|Study Period:||2018 - 2026|
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The South America Electric Vehicles market was valued at USD 1.1 billion in 2020 and is anticipated to reach USD 2.4 billion by 2026, at a CAGR of about 14%.
The COVID-19 pandemic has greatly affected the automotive industry in the region as production and sales have witnessed a decline in 2020. Furthermore, the COVID-19 pandemic has a minimal effect on the South America electric vehicles market.
Over the past few years, electric vehicles (EV) have witnessed considerable growth in the region due to the need for addressing future energy requirements. The need to attain sustainable transportation plays a significant role in driving electric vehicle demand.
The electric vehicle market is coming up as an integral part of the automotive industry and represents a pathway towards achieving energy efficiency along with reduced emission of pollutants and other greenhouse gasses.
Apart from the industry’s slow and steady shift towards EVs pertaining to environmental issues, tax Benefits, rebates and subsidies are the other factors d driving the market. But lack of adequate charging infrastructure because of the market being in its nascent stage and low gasoline cost in some countries is expected to hinder marker growth over the forecast period.
Scope of the Report
The South American Electric Vehicle market covers the increasing adoption of electric vehicles and the latest developments made particularly in the South American region. The market has been segmented on the basis of Vehicle Type, Drive-train technology, Charging Type, and Geography. The report offers market size and forecasts for South America Electric Vehicle Market in value (USD billion) for all the above segments.
|Battery Electric Vehicles|
|Fuel cell Electric Vehicles|
|Hybrid Electric Vehicles|
|Rest of South America|
Key Market Trends
Commercial Vehicles is Expected to be a Fastest Growing Segment
Bus manufacturers like BYD are entering the South American market by overcoming the challenges to replace diesel buses with battery-operated ones. BYD Auto has received orders from Argentina to become a domestic auto manufacturer and will contribute to revamping the existing bus fleets with 100% electric buses.
Over the past few years, the demand for electric trucks in the South American region has been increasing. Factors such as achieving energy efficiency by reducing emissions, the need for addressing future energy requirements, an anticipated increase in the adoption of electric trucks for logistics and municipal applications, and investments made by OEMs to start producing of electric vehicles in the region are driving the market.
- In July 2018 the Government approved the national green growth policy for 2030, with one of the goals being the introduction of 600,000 electric vehicles by 2030 by that year. More specifically, according to this policy, it is expected to deploy 400,000 electric light-duty vehicles and 13,000 trucks.
- In March 2020, BYD has received another order from Transcarsell, a public transport service provider in Ecuador for 20 electric trucks. BYD is expected to start deliveries in phases from August 2020 and finish by 2021. The company has been the largest supplier of electric vehicles in the region. Besides electric trucks, BYD has supplied electric buses and taxis to Argentina, Chile, and Colombia.
Apart from Volkswagen, the company is also enquiring Volvo, Mercedes, etc., firms to check for cost competitiveness. The demand for electric commercial vehicles is poised to grow at a faster pace owing to the rising trend toward the adoption of electric vehicles, especially from the public transportation and logistics sectors.
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Colombia is Poised to Witness a High Growth Rate
Air pollution in Colombia is worsening at an exponential rate. Cities like Medellin and Bogota face high risks in terms of health and air quality. Following numerous studies from various national universities, researchers found that diesel vehicles are the primary source of pollution within Bogota. Hence, the government is taking incentives and subsidies to achieve an ambitious target of 600,000 EVs on road by 2030 to combat the aforementioned environmental issues. Primarily, tax benefits serve as the biggest incentive currently.
The government is converting the fleet of public transport buses to electric which is expected to drive the country market in coming years. For instance, In January 2021, -BYD announced that it has bagged a cumulative order to supply 1,002-unit pure-electric buses to Bogota, Colombia. These buses are scheduled to be delivered during 2021 and into the first half of 2022 and will be put into operation on 34 bus routes across five regions of the city.
Vehicle tax in the country is based on the overall valuation of the car itself, varying anywhere from 1.5% - 3.5%. However, this has been relaxed to only 1% for Electric Vehicles. In addition to tax rebates, government is also lowering electricity tariffs that would make charging EVs even more affordable. Also, major automobile companies like Renault, BMW, Hyundai, and KIA are actively introducing their electric portfolio in Colombia.
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The South America Electric Vehicles Market is dominated by few players such as Hyundai Motor Company, KIA Motors Corporation, BYD Auto, BMW Group, and Groupe Renault. The market for electric vehicles is characterized by the presence of both established companies as well as small start-ups. There are also a large number of regional players currently focusing on specific geographies. For the commercial vehicle segment, BYD and Volvo are the most active companies. BMW, Kia, Renault, Hyundai are some of the major companies which cater to passenger cars.
In December 2020, the ZEBRA alliance released a coalition of 17 new investors and bus manufacturers for bringing new products and financing to expand the zero-emission bus fleet in South America over the next 1 year and beyond. This alliance is working to secure USD 1 billion in investments to deploy over 3,000 electric buses onto the cities of South America.
In September 2020, BYD announced that it has started operations in its battery factory in Brazil. It is the first battery factory by the company in the country that will produce lithium iron phosphate (LiFePO4) batteries primarily for electric buses. BYD claimed that the plant has a production capacity of up to 18 thousand battery modules per year.
In September 2020, ENGIE, and MODASA, entered into a partnership for sustainable mobility. The joint force will develop the first electric bus 100% made in Peru, with a capacity of 200 kWh, which will give it a range of about 200 kilometers.
Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Drive-train Technology
5.1.1 Battery Electric Vehicles
5.1.2 Fuel cell Electric Vehicles
5.1.3 Hybrid Electric Vehicles
5.2 Charging Type
5.2.1 Normal Charging
5.2.2 Fast Charging
5.3 Vehicle Type
5.3.1 Passenger Cars
5.3.2 Commercial Vehicles
5.4.4 Rest of South America
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Hyundai Motor Company
6.2.2 KIA Motors Corporation
6.2.3 BYD Auto
6.2.4 BMW Group
6.2.5 Groupe Renault
6.2.6 Volkswagen AG
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The South America Electric Vehicles Market market is studied from 2018 - 2026.
What is the growth rate of South America Electric Vehicles Market?
The South America Electric Vehicles Market is growing at a CAGR of >14% over the next 5 years.
What is South America Electric Vehicles Market size in 2018?
The South America Electric Vehicles Market is valued at 1 Billion USD in 2018.
What is South America Electric Vehicles Market size in 2026?
The South America Electric Vehicles Market is valued at 2 Billion USD in 2026.
Who are the key players in South America Electric Vehicles Market?
Hyundai Motor Company, Kia Motors, BYD Auto, BMW, Groupe Renault are the major companies operating in South America Electric Vehicles Market.