SAO PAULO, Sept. 5, 2013 /PRNewswire/ -- Brazil's electric vehicle (EV) market is set to grow substantially owing to supportive legislations, anticipated tax incentives for EVs, and enhancements in charging infrastructure. In fact, an estimated 35 EV models will be launched in the country, driving the market up to 80,877 units by 2020. Plug-in hybrids (PHEV) and range extenders will account for more than 70 percent of the market.
New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of Brazil Electric Vehicle Market, looks at how original equipment manufacturers (OEMs) in Brazil can leverage this potential, and choose the right product positioning strategy. The study reveals that in addition to conventional outright sales and leasing models, OEMs must pursue car sharing and partnerships with car fleets to gain market share.
"Although Brazil's automotive policy towards EVs is at an early stage, the second phase of its Inovar-Auto program will provide incentives for EV manufacturers and end users, thereby encouraging adoption," said Frost & Sullivan Automotive and Transportation Research Analyst Ananth Srinivasan. "The expansion of EV charging infrastructure, currently focused on Sao Paulo and Rio de Janeiro, to other key regions such as Pernambuco, Sergipe and Ceara will further boost uptake."
This development, however, remains slow, pegging market growth back to an extent. The continued preference for flex-fuel over hybrid electric technology is another restraint. Additionally, the lack of localized battery technology and the high initial costs of acquisition will hinder market penetration in the short- and medium-term.
Nevertheless, Frost & Sullivan believes that partnerships with utility companies will provide the necessary support to widen EV charging infrastructure in Brazil, and improvements will gather pace by 2017. Local participants in battery technology development will have significant growth opportunities.
Moreover, product costs will fall on the strength of tax incentives. Frost & Sullivan's estimates point to a 25 to 37 percent reduction in PHEV prices and 25 to 40 percent reduction in battery EV prices over the next seven years.
"Product launches in the small- and mid-size sedan segments, maintaining a price bandwidth of $40,000 to $65,000 and offering diverse business models, are key success factors in the Brazilian EV market," noted Srinivasan. "Market participants will also benefit from an early entry strategy."
If you are interested in more information on this research, please send an e-mail to Francesca Valente, Corporate Communications, at email@example.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.
Strategic Analysis of Brazil Electric Vehicle Market is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan's related research services include: Electric Vehicle Charging Infrastructure in Europe, 2013 Outlook of the Global Automotive Industry, Turkish Medium-Heavy Duty Truck and Bus Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Strategic Analysis of Brazil Electric Vehicle Market
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
SOURCE Frost & Sullivan