Market Trends of south america passenger cars Industry
This section covers the major market trends shaping the South America Passenger Cars Market according to our research experts:
Sports Utility Vehicle is the largest segment by Sub Body Type.
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Argentina is the largest segment by Country.
- Due to low levels of car ownership and faster growth in disposable incomes than in Asia-Pacific, the South American market presents an enormous opportunity for the automotive sector. Over the past few years, there has been an increase in demand for electric vehicles in South America owing to concerns like the necessity to reduce emissions in order to attain energy efficiency and the need to meet future energy demands. The industry is projected to be fueled by Brazil's growing EV demand, which has encouraged various foreign companies to start making their EVs in the region.
- The COVID-19 epidemic has reduced consumer purchasing power, causing a large decline in oil prices and, as a result, reducing the cost of gasoline. The drop in gas prices may lower the overall cost of ownership for conventional vehicles with internal combustion engines (ICEs). Although the advantage may not be as substantial, EVs may still have lower total costs of ownership than typical ICE vehicles do in most classes, which could affect sales.
- Ethanol made from sugarcane is a relatively sustainable fuel in South America. Additionally, this fuel has direct emissions that are up to 90% lower than those of gasoline or diesel equivalents. Additionally, the rise of the market has been significantly influenced by Brazil's growing use of superior sustainable fuel alternatives. One of the key factors driving the market's expansion is the rise in renewable energy consumption in the automobile sector. With the industry moving toward a more sustainable production, the research being carried into the electrification of automotive looks promising because the region is a hot investment zone, owing to the growing nature of the market, which can bring in a lot of money and improve the market conditions.
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