Policy Brief
Electric vehicle development and strategies among leading automakers: Comparing Brazil with other major markets
This brief examines the electric vehicle (EV) deployment strategies of the leading automakers in the Brazilian light-duty vehicle market and compares them with approaches adopted in other major regions.
The results point to a significant gap in EV sales and sales targets between Brazil and other major global markets: China, Europe, the United States, Japan, India, and the Republic of Korea. In these regions, stricter regulations and targeted incentives have led automakers to adopt firm electrification commitments. In Brazil, by contrast, strategies remain focused on flex-fuel (gasoline–ethanol) hybrid vehicles, which have substantially higher well-to-wheel emissions than battery electric counterparts. This is especially true in Brazil, where a high share of renewables in the electricity grid translates to particularly low well-to-wheel emissions. With this delayed transition to BEVs, the national automotive industry may set transportation emissions off-course and put achievement of Brazil’s net-zero by 2050 target at risk.
Figure. EV market share by automaker, Brazil vs. other major markets’ average, 2023
This analysis supports the following policy considerations:
The absence of EV-specific public policies has allowed automakers to continue prioritizing flex-fuel hybrids and internal combustion vehicles. Without more robust policy support for electrification, Brazil could struggle to meet its climate neutrality goals.
The Green Mobility and Innovation (MOVER) Program sets a 12% energy consumption reduction target by 2027 — less ambitious than comparable international programs — and maintains tax incentives for flex-fuel hybrids until 2026.
- To align Brazil with long-term climate ambitions, Brazil could consider adopting more restrictive corporate average emissions reduction targets in the second phase of the MOVER program (2027–2032), encouraging automakers to accelerate investment in electric vehicles. A feebate or tax-based mechanism could also be introduced to support adoption of electric vehicles.