CURRENT ELECTRIC VEHICLE MARKET SCENARIO IN THE REGION
The South American electric vehicle market is in its early stages, with just a few thousand vehicles in circulation in the region. Majority of those vehicles are for corporate and government usage, taxis or public transportation, with only a few hundred electric vehicles owned by private individuals.
However, the region is facing many challenges in expanding the current market for electric vehicles. Some of the major barriers to the market growth are the high upfront costs and lack of public charging infrastructure. Concerns about grid reliability and competition from other industries have also curbed the growth of the electric vehicle market. Irrespective of the barriers, there are some factors driving the growth of the market, such as limited tax breaks and exemptions from road access restrictions.
The expansion of electric mobility in South America is expected to offer many perks, such as enhancing air quality and reducing carbon emission, in turn improving public health. The transport sector is the major and fastest-growing source of energy-related emissions in the region. Currently, the electricity generation in the region is much cleaner than the global average because of the heavy reliance on hydropower and limited coal-fired generation, increasing the potential benefits of electric mobility. In countries where fossil fuels are the source for over 50% of electricity generation, such as Chile, electric mobility may improve air quality and reduce emissions.
ELECTRIC VEHICLE TRENDS IN THE REGION
Argentina, second largest country in South America, at the start of 2018, introduced a new policy for electric vehicles that is aiding the availability of electric vehicles for sale in the country. This policy is expected to boost the sales and production of electric vehicles in the country, supporting an e-mobility future, by starting to do away with import taxes on hybrid, electric, and hydrogen-powered vehicles.
In December 2016, the first operational station for loading 100% electric vehicles in the country was initiated in the city of Buenos Aires, by the Italian firm Enel, through its subsidiary in Argentina, Edesur. In future, the station will be able to load cars from all other manufacturers and will not be limited to only the Renault model.
The Swiss company, ABB, has also agreed with state-owned firm YPF to install 220 electric car chargers in Argentina (the ABB Terra 53 chargers will be made available in 110 YPF stations through a partnership with QEV Argentina) with an estimated investment of USD 13 million. These stations will be able to charge vehicle models from manufacturers like General Motors, Toyota, or Volkswagen.
By the end of 2018, Argentina is expected to witness ~6,000 EVs, and customers will avail the benefit from energy efficiency improvements.
ELECTRONIC SHOW 2018 IN SOUTH AMERICA
The electronic show is the largest trade show for the industry and retail of consumer goods and technology of Brazil and Latin America, and will be held from July 23-26, 2018 in the city of São Paulo, Tesla, the vehicle assembler responsible for the rise of electric cars will have its product exhibited at the Latin American Electronics International Trade Show 2018 at the Elektra Motors booth, a company that, since the end of 2016, markets Tesla’s vehicle in Brazil. The return to the fair of Elektra Motors, with the electric car, reaffirms the condition of the event to be a platform of technology and innovations in the Latin American market.
About the market
The South America automotive high-performance electric vehicle (EV) market is expected to register a moderate CAGR during the forecast period, 2018 – 2023.
Mordor Intelligence is a market intelligence and advisory firm operating in 14 industry segments, serving over 600 clients worldwide.