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Some Of The Factors That Boosted The Production And Sale Of Electric Vehicles And Bicycles In Brazil Were The Pandemic, The High Price Of Fuels, And The Concern About Pollution
Vehicles that are not powered by fuels, such as electric vehicles and bicycles, are seeing an increase in production and sales in Brazil. According to Abraciclo, the bicycle market may grow by 17.4% in 2022 compared to 2021. The electric vehicle sector is projected to grow by 80% this year, according to the Brazilian Association of Electric Vehicles (ABVE).
According to Cyro Gazola, vice president of the bicycle segment at Abraciclo, this increase in the bicycle market began during the pandemic when people were looking for activities to do outside of their homes. “All of this helped to boost the industry and increase this acceleration in demand, which will have continuous growth,” said the vice president.
ABVE also stated that the electric vehicle market has been growing consistently. The association reports that sales of electric vehicles in Brazil saw a 147% increase in February of this year compared to the same month in 2021, equivalent to 1,389 electric vehicles, and a 34% increase from January of this year, amounting to 2,558.
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Growth In Demand For Electric Vehicles In Recent Years
According to CNN, the director of Infrastructure at ABVE, Márcio Severine stated that the demand for electric vehicles has been increasing over the past three years. For Severine, this increase was caused by awareness of carbon emissions and the high prices of fuels.
Márcio Severine emphasizes: “When you start to compare the price of an electric car, it is necessary to look at the total cost of ownership. That is, when you add the taxes, maintenance costs, the price of the vehicle and fuel, the customer realizes that electric vehicles are much more advantageous.”
The director of Infrastructure at ABVE further compares that filling a fuel tank costs a citizen at least R$ 250, but with an electric vehicle, that cost drops to around R$ 15.
For Cyro Gazola, the high prices of fuels will also boost bicycle sales. He highlights that although the increase in fuel prices is recent, it is another factor that will positively impact the market. Everything depends on distance and travel. For shorter distances, people have started to adopt bicycles, and this will be a constant movement.
Need For Stimuli In The Electromobility Market
Márcio Severine believes that Brazil needs stimulation in the field for the increase in electric vehicle production to happen. Although Brazil does not have a large structure in the electric vehicle area, Márcio states that the country has great growth potential, potentially surpassing other countries.
Severine evaluates that these incentives would be significant for the industry to make the necessary investments to operate intensively in the electric vehicle sector in Brazil, as currently, the majority of the electric cars in Brazil are imported. Thus, companies are facing a restriction regarding the electric vehicles that can be brought to Brazil.
Severine emphasizes that due to the lack of parts, other countries will assemble fewer and bring fewer products to Brazil. “The country has always been an exporter of vehicles; we have a knack for that. By generating adequate incentives, Brazil will manage to produce independently.”
Gazola also pointed to the growth of the electric bicycle market, in addition to conventional bicycles. He stated that although the price of electric bicycles is higher, demand will continue to rise. The vice president points out that Abraciclo saw a 2% increase in the electric bicycle segment, and although it is a small percentage, it is growing much more than the other segments.
Cyro Gazola points out that the electric bicycle segment has the potential to grow around 40% compared to 2021, and that the major challenge will be to manufacture electric bicycles at an affordable price for the consumer.
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