An assessment of barriers and solutions for the deployment of electric vehicles in the Brazilian market

Abstract

The growing concerns about the energy and environmental crisis drive the development of a sustainable society. The electric vehicle (EV) is a potentially clean technology that can contribute to the decarbonization of the transportation sector. However, EVs face obstacles to being diffused and are not prevalent in the global vehicle fleet. Thus, this research identifies the attractiveness, barriers, and solutions for the diffusion of EVs. Semi-structured interviews were conducted with key agents of the Brazilian supply chain of this technology. Results showed that EVs have essential attractions, but there are barriers to their diffusion in the Brazilian market related to EV cost, charging infrastructure, and public policies. The main solutions to overcome these barriers and expand EV adoption involve: (i) increase of emission consumer awareness through promotional campaigns by government and industry, (ii) tax and non-tax incentives, e.g., reduction of taxation on EV purchase or parts of it, reduction of annual fees or special transit permits for EV, and (iii) technological advances, notably in terms of battery performance and availability and efficiency of charging stations. This research comprises aspects of EV diffusion in Brazil but can serve as guidance for other countries with emerging economies or regions where EV adoption is still incipient.