Climate change is one of the biggest political and economic challenges faced by global economy. To slow down climate change, mitigation actions and greenhouse gas (GHG) emission targets have been adopted, promoting electric vehicles (EVs) globally. In Brazil, however, emission reduction strategies for the transport sector are based on the broad use of biofuels. This paper studies the Brazilian light-duty vehicle EVs market investigating the reasons behind its current state. A Structure-Conduct-Performance Model with a PESTEL Analysis and the Herfindahl–Hirschman Index integrated to the structure analysis was used. The Brazilian EV market has grown in the period from 2019 to 2023, albeit timidly and restricted to a luxury market. The lack of actions promoting electric mobility, a less than promising economic scenario, the challenges in implementing a charging infrastructure and the conduct of the incumbent firm in the market – investing in high priced hybrid models – contribute to low penetration of EVs in the market and the dominance of hybrids amongst them. In the light of these findings, this study highlights that the Brazilian EVs market would benefit from public policies developed to promote electric mobility, and investment of private companies to develop EV models with more competitive prices.
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