Brazil Electric Bus Market Opportunity Assessment Study
by Rahul Gautam ManagerElectric bus market in
Brazil registered a CAGR of 212.7% during 2013 – 2016,
recording a shipment of over 2,000 units in 2016. The market in Brazil is
currently in its nascent phase, though it is expected to grow significantly
after 2017. The growth of this market in Brazil is chiefly attributed to the
growing demand to reduce dependency on fossil fuels.
The first electric bus in Brazil was launched at Sao Paulo in 2014. The module of the bus was made in Brazil, and the batteries and recharge systems were delivered by Mitsubishi Motors (a Japan based company). The bus has a capacity to carry 124 passengers, and can cover 125 miles on a single charge. Owing to high degree of air pollution in Sao Paulo, the government in Brazil is planning to replace its diesel-powered buses with low-emission buses by 2020.
Brazil Electric Bus Market Dynamics
The
market in the country is mainly driven by factors such as rising focus on
charging infrastructure. Present charging infrastructure in the country is
focused only around Sao Paulo and Rio de Janeiro, though it is projected to
strengthen across other key states, namely, Pernambuco, Sergipe, and Ceara. The
roadblocks to the growth of the market include inadequate judicial support,
strong disagreement from pro-Ethanol groups, limited charging infrastructure,
and high initial procurement cost of electric bus.
Brazil
has been the electric bus market in Latin America. The country produces more
than 85% of its electricity from renewable sources and is dedicated to tackle
environmental change by proactively reducing greenhouse gas (GHG) footprints
and endorsing new sources of renewable energy. Unlike developed economies or
even emerging markets, the Brazilian government offers very few incentives for
electric bus adoption.
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In
October 2012, Brazilian government approved INOVAR-AUTO, a new program to boost
vehicle technology innovation, which fostered market competitiveness by
reassuring automobile vendors to manufacture more efficient, safer, and
technology-advanced vehicles. This program is continuously helping the
Brazilian automotive manufacturers and buyers to shift their focus to electric
vehicles. The country has the potential to become one of the largest markets of
electric buses in Latin America in coming years.
To
support the Brazilian electric bus market, the government of the country
announced to support the market development in the country by exempting import
tax. It highlights that the impact of tax burdens on the Brazilian market will
only be for shorter period of time.
Players
in the Brazilian electric bus market is more focused on enhancing their product
and innovating new products through various strategic approaches. Various
international players are also paving the way for electric vehicles in Brazil.
For instance, BYD Company Limited, announced to expand its Brazilian operations
with new PV solar panel and electric bus chassis production.
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Created on Jul 8th 2019 03:43. Viewed 275 times.