Hybrid Cars On the Rise in Brazil Despite Electric Vehicle Concerns

In Brazil, the hybrid car market is gaining traction as electric vehicle (EV) sales decline in multiple markets due to decreasing government incentives and inadequate charging infrastructure. As a frontrunner in hybrid vehicle production, Brazil is poised to establish itself as a leader in this segment.

Toyota’s factory in Sorocaba, located 100 km from São Paulo, plays a key role in this shift. Here, a 38.4 kg battery is incorporated beneath the seats of select vehicles. This battery powers an additional electric motor, which harnesses energy through the braking system and stores it for use by a propulsion system. The result is a car that can run up to 40 km on electric power alone, with a gasoline or ethanol-powered combustion engine taking over for the remainder of the journey.

This innovative blend of technologies makes Brazilian flex hybrids both cost-effective and eco-friendly. Approximately 20% of the vehicles produced in Sorocaba include this additional battery, further reducing emissions. By combining an electric motor with a flex-fuel combustion engine, hybrid vehicles emit notably less CO2 compared to traditional gasoline cars.

Toyota, the first automaker to introduce hybrids in Brazil back in 2019, stresses on the importance of a well-established ethanol supply network. The company’s spokesperson, Roberto Braun, emphasized the challenges posed by insufficient charging infrastructure for electric vehicles, a problem also seen globally.

While electric vehicle sales decline worldwide due to various factors, Brazil remains focused on hybrids, supported by its biofuel network and a newly launched government program. The Mover program is set to invest R$ 19.3 billion ($3.78 billion) by 2028 to boost clean automotive technology and drive hybrid vehicle growth.

Hybrid Focus in Brazil’s Automotive Industry

While some Chinese companies plan to produce fully electric vehicles locally, most manufacturers in Brazil are intensifying their efforts on hybrids. The upcoming Great Wall Motors (GWM) factory, scheduled to open soon, will initially focus on producing hybrid plug-in SUVs.

According to studies by consultancy LCA and economist Luciano Coutinho, transitioning directly to electric cars could result in substantial economic losses over the next three decades. On the other hand, embracing hybrid cars could potentially lead to a significant increase in automotive revenue while preserving the current production network and job market.

In 2023, Brazil saw a surge in hybrid and plug-in hybrid vehicle sales, indicating a strong preference for hybrids over fully electric cars. With 93,900 hybrid and plug-in hybrid vehicles sold compared to just 19,300 fully electric cars, Brazil’s automotive industry is clearly embracing the hybrid trend.