Sector projects that Brazil will reach 100,000 electric vehicles in 2022

Brazil is expected to reach the mark of 100,000 electric vehicles at the beginning of the second half of 2022.

Currently, there are 79,800 of them in circulation in the country, including automobiles, utility vehicles and light commercial vehicles, according to a projection by the Brazilian Electric Vehicle Association (ABVE). This data does not include buses, trucks and very light vehicles.

In 2021, the electric and hybrid vehicle market had a record 34,900 units sold. Numbers that exceed all ABVE forecasts and represent an increase of 77% over the 19,700 registrations carried out in 2020.

According to data from the National Traffic Department (Denatran), in all 26 states and in the Federal District, there are automobiles of this type, but most of them are concentrated in the states of São Paulo, Minas Gerais and Rio de Janeiro.

In relation to cities, there are more electric vehicles in São Paulo, Brasília and Rio de Janeiro. This is due to the strong incentive for electromobility in these regions, such as the creation of climate change plans with targets for reducing pollutants, incentives to reduce the IPVA, exemption from car rotation and massive investments in expanding the charging infrastructure.

Rio de Janeiro was the first city in Brazil to have garbage trucks with zero emission of polluting gases: about 10% of the current fleet is electric. ABVE’s president, Adalberto Maluf, explained one of the main causes for the increase in sales in this sector.

“There was a very big increase in the sale of electric trucks, more than 1,100%. The main reason for the growth in consumption of electric vehicles in 2021 was the environmental, social and governance (ESG) performance of companies in Brazil”, said Maluf.

“There was a significant growth in sales of light vehicles for companies, due to this ESG agenda, of green logistics, which grew a lot last year. In addition, we can mention the increasing use by companies that use electric vehicles for their executives and employees”, he pointed out.

The market is currently divided into three types of vehicles. There are the 100% electric ones, the most sustainable, as they do not have a combustion engine. They are powered by a rechargeable battery and currently represent the smallest part of the fleet: just 8% of the total.

The proportion, however, is growing and the sale of these models is three times higher each year.

There are also hybrids, with a combustion engine powered by some fossil source, such as gasoline, alcohol or diesel, combined with a rechargeable battery electric motor, which converts the energy lost during braking into electricity.

These are divided into two types: those that only recharge the battery in this way, typical hybrids, and those that offer the option of external charging: pluggable hybrids.

In addition to price, fossil fuels also face environmental pressures, due to the commitments assumed at COP-26 by several countries to reduce carbon emissions, responsible for the greenhouse effect.

The electric vehicle contributes to reducing the emission of pollutants. Currently, a fully electric car costs from R$ 150 thousand in Brazil. Diogo Seixas, ABVE’s director of infrastructure, denied that they are much more expensive, as part of the population perceives, and recalled the circumstances of the offer.

“What happens is that, without national production, all vehicles are imported. Issues such as freight and exchange enter into this equation, with our currency devalued against the dollar,” he said.

“In this scenario, Brazil has only received more comfortable luxury electric car models that cost more. Of course, they are not in the same category as a popular combustion-powered car. It’s an inappropriate comparison,” he added.

Recharging is a challenge for owners of 100% electric vehicles or pluggable hybrids. As a result, the number of recharge points installed in the country has grown.

Generally, charging points are private, with restricted access: they belong to the owners, installed in homes or companies that have fleets, or with public access, such as in hotel chains, shopping malls and supermarkets.

Recharge points exist to speed up battery charging time. In a common residential outlet, the most commercialized models take between 45 and 48 hours to complete the process, which, with the technology used at these points, can be carried out in less than five hours.

The CEO of GreenV, a company that has installed between 60 and 70 charging points per month, Júnior Miranda, explained that the service enables the daily use of vehicles.

“Today, around 50% of the recharge points we install are located in São Paulo, and we believe that we will reach 100% monthly installations by the second half of the year. This network is not ours: we do it for customers in their homes, for companies, who need to serve their fleets”, declared Miranda.

“In some cases we just do the installation. In others, also maintenance and follow-up. Many are for private public access locations, such as shopping malls, clubs and hotels,” he added.

Another topic that often worries consumers who are thinking about purchasing an electric vehicle is the electricity bill. Especially at a time when the country is facing a water crisis that imposes a flag of energy scarcity in the tariff: R$ 14.20 for every 100 kWh consumed.

For the CEO of GreenV, this is a concern that has no echo in the reality of those who currently drive a combustion-powered vehicle.

“There is an increase in the energy bill, fully offset by the reduction in fuel supply costs. It is an expense that is three to five times cheaper, especially in business use. Since companies that electrify the fleet often pay much less for energy, especially those that contract through the free market”.

“There is exemption from IPVA, from rotation in São Paulo, a series of measures that reduce costs. Thus, it is an investment that pays for itself in 18 to 24 months”, concluded Miranda.