South America Electric Vehicles Market Report and Forecast 2024-2032

South America Electric Vehicles Market Outlook

The South America electric vehicles market size is projected to grow at a CAGR of 22.5% between 2024 and 2032. The market is being aided by the introduction of favourable government initiatives aimed at phasing out internal combustion engine vehicles (ICEVs).

Key Trends in the Market

An electric vehicle (EV) can be defined as a vehicle that is powered by an electric motor that uses battery power. Meanwhile, a  plug-in hybrid electric vehicle refers to a vehicle that can be powered by both an internal combustion engine and an electric motor using battery power. Electric vehicles boast lower maintenance and running costs and have zero CO2 emissions.

• One of the key South America electric vehicles market trends includes the introduction of favourable government initiatives aimed at promoting sales of zero-emission vehicles (ZEVs) and the phase-out of internal combustion engines (ICEs). For instance, Colombia aims to increase zero-emission urban bus sales to 10% by 2025 and 100% by 2035.

• Similarly, in Costa Rica, by 2050, 100% of new light vehicle sales and buses and taxis are anticipated to be zero-emission. Governments in the region are also offering financial incentives to reduce costs associated with purchasing, operating, and maintaining electric vehicles, batteries, and equipment.

• Growing consumer awareness regarding sustainability, coupled with the rising concerns regarding greenhouse gas emissions from the transportation sector, propels the South America electric vehicles market demand. Besides, surging investments in electric vehicle production by leading automotive companies in the region are further fuelling the market expansion.

• Approximately 65% of the world's lithium reserves are found in Latin American countries like Bolivia, Chile, and Argentina, among others. Hence, the increasing manufacturing and export activities of EVs and lithium batteries are expected to positively influence the South America electric vehicles market growth in the forecast period.

Market Analysis

Based on propulsion type, the market is segmented into battery electric vehicle, hybrid electric vehicle, plug-in electric vehicle, and fuel cell electric vehicle. On the basis of vehicle drive type, the market can be divided into front wheel drive (FWD), rear wheel drive (RWD), and all wheel drive (AWD).

Based on vehicle type, the South America electric vehicles market segmentation includes two-wheeler, passenger cars, and commercial vehicle. On the basis of top speed, the market can be bifurcated into less than 125 mph, and more than 125 mph. The major regional markets for electric vehicles in South America are Brazil, Mexico, and Argentina, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the South America electric vehicles market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• General Motors Company 

• BMW AG 

• Audi AG 

• Volkswagen AG 

• Ford Motor Co. 

• Mercedes Benz Group AG

• Groupe Renault

• Stellantis NV

• Hyundai Motor Co. 

• Toyota Motor Corp. 

• Others

Market Share by Vehicle Type

As per the South America electric vehicles market analysis, the rising focus on sustainability and carbon neutrality contributes to the surging demand for commercial electric vehicles. A significant portion of passengers in Latin America are dependent on public transport, which offers the possibility of the deployment of electric public transport fleets in an economically feasible manner.

For instance, the capital of Chile, Santiago, is attempting to completely electrify its transit network, and offer incentives for electric buses in the bus tenders through initiatives such as Euro VI. Meanwhile, Colombia aims to electrify its entire mass transportation systems and mandate that local governments provide funding for electrification projects by 2035. Such initiatives and government policies drive the commercial electric vehicle market demand in South America.

Market Share by Region

Brazil holds a significant portion of the South America electric vehicles market share due to the rising focus on decarbonisation in the country. Brazil has also established its position as a leading automotive manufacturer in the region, boosting EV production activities.

The Brazilian government is also attempting to support the production of electric vehicles and shift towards cleaner vehicles. The growing trend towards electrification, coupled with the rising sales of electrified cars and the expansion of charging infrastructure, is also aiding the market expansion in Brazil.

Meanwhile, Global Environment Facility (GEF), United Nations (UN), National Geographic Society, and other international financial institutions and development organisations have provided Latin American countries such as Argentina and Mexico, among others, with financial and technical help for EV transitions, creating opportunities for the South America electric vehicles market expansion.

Competitive Landscape

General Motors Company is a leading global automotive manufacturer that is engaged in designing, producing, and marketing automobiles, trucks, and auto parts. Through General Motors Financial Company, Inc., the company also offers financing services for the automotive sector. Chevrolet, Buick, GMC, and Cadillac are some of its renowned brands.

BMW AG is one of the leading premium auto and motorcycle manufacturers in the world. The BMW Group is known for its three brands: BMW, MINI, and Rolls-Royce. It is a leading supplier of luxury financial and mobility services. It has more than 30 production and assembly facilities in addition to a global sales network.

Audi AG, Volkswagen AG's subsidiary, is a car manufacturer that is headquartered in Wolfsburg, Germany. It creates, develops, produces, and markets high-end automobiles. The Audi Group consists of Audi, Bentley, Audi Sport GmbH, and the three classic Italian brands Lamborghini, Ducati, and Italdesign.

Other players operating in the South America electric vehicles market include Volkswagen AG, Ford Motor Co., Mercedes Benz Group AG, Groupe Renault, Stellantis NV, Hyundai Motor Co., and Toyota Motor Corp. among others.

Key Highlights of the Report