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The crisis in the electric vehicle market is already affecting rental companies and even companies like Localiza and Movida have been rethinking their acquisitions
Car rental companies, which traditionally account for a significant portion of automakers' car sales, are backing away from buying electric cars. With 4,3 thousand electric vehicles and 6,8 thousand hybrids in the fleets, the numbers, although expressive, rrepresent less than 1% of the total number of vehicles, according to Paulo Miguel Junior, vice-president of the Brazilian Association of Car Rental Companies (Abla), according to the website Seu Dinheiro.
The giant Localiza, for example, ended 2023 with only 2,7 thousand electric and hybrid vehicles in a fleet of more than 631 thousand vehicles. The accelerated depreciation of these models has led rental companies to rethink their acquisitions, with many cars being resold at prices much lower than expected, recording depreciations that vary between 40% and 45%.
Devaluation and impact of Chinese brands
The depreciation of electric cars previously purchased by rental companies is largely due to attributed to the entry of Chinese brands into the market, such as BYD and GWM, which offered vehicles with more advanced technologies at more competitive prices. This forced traditional automakers to reduce their prices., impacting those who had purchased the more expensive models.
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Movida, one of the pioneers in the purchase of electric vehicles, acquired about 600 units of models such as the Nissan Leaf, Renault Zoe, Fiat 500e and BMW i3 from 2021. However, in less than two years, a large part of this fleet was stranded in the yards, waiting for buyers. Many of these vehicles were sold with discounts of up to 40% compared to the Fipe table.
This situation led Movida to suspend the purchase of a batch of 250 BYD Tan, scheduled for 2022. Although the company has not officially commented, the suspension illustrates the caution of rental companies in continuing to invest in electrification.
Unfavorable global scenario: Tesla also suffers in the US
The scenario is even worse outside Brazil. Hertz, one of the largest rental companies in the United States, has given up on purchasing 100 Tesla vehicles in 2023, citing the rapid depreciation of pre-owned vehicles as the main reason for the decision.
Despite this, the president of Fenauto, Enilson Sales, highlights that sales of electrified vehicles (hybrid and electric) increased 90% in Brazil between January and July, totaling 33 thousand units. However, he warns that, despite this growth, the market is still a niche, and the sales pace does not compare to that of combustion vehicles, which sold 9% more in the same period, with a total of 8,8 million units sold.
Consumers suffer during resale
the consumers have also faced difficulties in reselling their electric vehicles. Maurício de Barros, a businessman from São Paulo, decided to sell his Peugeot e-208 after two and a half years of use and 54 thousand km driven. Purchased for R$249, it did not receive any offers on the sales platforms in four months and, eventually, He handed the car over to a dealership for just R$100, to exchange it for another electric car.
Barros, who considers the experience a “blow”, acknowledges that he paid the price for being one of the first to adopt a 100% electric car. Even so, he chose to continue investing in electrified vehicles, purchasing a BYD Yuan Plus, which offers greater autonomy and more technology for a more affordable price, thanks to a discount offered by the brand.
