7 Feb 24

LatAm – Questionably moving towards renewables

Several LatAm countries have implemented policies and initiatives to accelerate the transition to renewable energy, fostering a burgeoning market for electric vehicles and renewable fuels. However, efforts toward biofuels, such as palm oil-derived biodiesel, are questionable due to their detrimental impact on jungles and wildlife. 

Fleet Statistics - LatAm

No. of fleet vehicles

240m (70% passenger cars, 20% light trucks and vans, 10% motorcycles).

Avg. Age of fleet vehicle

10 years (cars), 12 years (light trucks and vans), 5 years (motorcycles).

Avg. Annual fleet mileage

25,000km (15,534 miles).

Avg. fleet vehicle cost

$400 (car), $550 (light truck or van), $250 (motorcycle)/month.

Avg. lease duration

2-5 years (car), 3-7 years light truck or van), 1-3 years (motorcycle).

Government Goals

·      Chile’s "ElectroMovilidad" aims to convert 100% of its public bus fleet to electric by 2040.  The country also has the world's largest installed solar power capacity, providing a renewable energy source for EVs.

·      Colombia invests in expanding biofuel production from palm oil and sugarcane residues while developing a nationwide network of biodiesel and bioethanol pumps.

·      Costa Rica has successfully electrified its transport sector, with over 90% of its electricity coming from renewable sources.

·      Brazil is home to a large biofuel industry, producing ethanol from sugarcane.

·      Mexico aims to have 15% of new vehicles sold by 2024 powered by electricity or hybrid technologies.

As the region continues to invest in innovation, collaboration, and infrastructure development, we expect to see rapid and transformative progress towards a cleaner and more sustainable future for transport in LatAm. 

Read the E-Book on Real Road to Sustainabilty here 

Image: Shutterstock

Authored by: Alison Pittaway