Analysis
7 Feb 18

Electrification emerging in Latin America

Although Latin America is strides behind Europe, Asia, and the United States when it comes to the transition to electric vehicles (EV), recent legislative efforts and the emergence of new EV models in 2018 should bring the region a little closer to its overseas counterparts.

In the largest fleet market, Brazil, electric and hybrid cars only represent about 0.01% of the country’s fleet and a starting unit price of approximately 130,000 reais (US$40,500) is still quite high for most consumers. However, besides the falling price of batteries which should soon lower the price of vehicles, the federal government has shown stronger signs of pushing for cleaner energy and electrification this year.

 

Besides approving the start of the process for Brazil to become a country member of the international renewable agency IRENA, the country’s infrastructure services commission approved PLC 65/2014 in January, a bill that obliges electric utilities to install vehicle recharging units at strategic points throughout cities.


The federal government also passed a bill in January which proposes the privatization of national electricity company Eletrobras, something that could also speed up changes in the move toward electrification.


In terms of the private sector, a few OEM’s are planning to introduce their first EVs into the country.  Among them are the Nissan Leaf (world’s best selling EV), Vokswagen e-Golf and Golf GTE, Chevrolet Bolt, Hyundai Ioniq, and Volvo XC60.


Nissan Leaf (CREDIT: Nissan)

“With the launch of the Bolt, General Motors wants to be the leader in this technology. We [GM international] are also planning to launch a total of 20 new EVs by 2023,” head of GM direct sales in South America Marcelo Tezoto told Global Fleet.

 

As the automakers are currently waiting for last minute definitions from the federal government regarding its long-term automotive industry program Rota 2030, exact launch dates for most of new models have not been defined yet.  They are expected, however, by 2019.

 

Meanwhile, three existing models will continue to be offered in Brazil.  They are the BMW i3, the Toyota Prius (world’s best selling hybrid), and the Volvo XC90 (SUV hybrid).



Toyota Prius (CREDIT: Toyota)

 

As for Latin America’s second largest fleet market, Mexico, it is getting support from various automobile brands.

 

Besides the launch of practically the same cars to be seen in Brazil, Ford is moving production of its long-range electric crossover from its home state of Michigan to Mexico. To be launched in 2020, this new un-named SUV will be Ford’s first all-electric passenger vehicle.

 

Moreover, Tesla Motors has scheduled the installation of 18 proprietary EV supercharging stations in the country this year, including those in key cities such as Monterrey and Guadalajara. Currently, Mexico has seven stations. It is the only country in Latin America with Tesla distribution.



Tesla suerpcharger station (CREDIT: AFP)

 

Meanwhile, the private sector is also pushing electrification in other countries. For instance, Renault and Colombian automobile assembler Sofasa has jointly built a solar-powered parking facility for electric vehicles in Colombia. Located in Antioquia department's town of Envigado, it is considered the first of its kind for Renault in the Americas.

 

Finally, regardless of these changes, LatAm fleet managers must understand that it is difficult for EVs to compete with standard combustion engine cars when calculating TCO, at least for the time being. This, however, will likely to change in the coming years. 


Top Photo (SOURCE: Electrek)​​​​

Authored by: Daniel Bland