Hybrid, electric vehicle market to increase 30% in Latin America

By 2025, hybrid and electric vehicle (EV) sales in Latin America’s nine emerging electric mobility markets is expected to rise to more than 158,300 units, an increase of more than 30% from 2018.

Some 114,700 hybrid vehicles (HEV) are forecasted to be commercialized throughout the region, representing a compound annual growth rate (CAGR) of 26%, according to a study by international consultancy firm Frost & Sullivan.

The study, called “Analysis of the Latin American Electric Vehicle Market, Forecast to 2025,” covers the electric powered vehicle markets of Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, and Paraguay.

Meanwhile, plug-in hybrids (PHEV) sales are expected to top 20,300 units (+ 36% CAGR) by 2025 and battery electric vehicles (BEV) should top 23,300 units (+50% CAGR).

“In recent years, there have been numerous EV-related disruptions such as e-taxi and e-bus pilot programs, fleet acquisition targets by logistics and utility companies, local design and manufacturing of fully electric micro-cars (in Mexico, Brazil and Argentina), and even some BEV carsharing and car rental services,” says Frost & Sullivan Mobility Research Analyst Martin Singla.

As for automakers (OEMs), they will be looking to optimize these opportunities through collaborations and convergences with utility companies, petrol stations, mobility companies, civil associations and EV charger manufacturing companies.

To define regulatory frameworks and transform the constantly aging operational vehicle parc over the next decade, OEMs need to engage in constant dialogue with government authorities. According to the analyst, incentives as well as EV offerings, customer awareness and associated charging infrastructure will be crucial for future growth.

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