Nine Latin American countries have set crucial milestones and programs to develop attractive EV markets and technology
BUENOS AIRES, Argentina, Jan. 15, 2020 /PRNewswire/ -- As local governments across Latin America define their electromobility strategies, original equipment manufacturers (OEMs) are framing their electric vehicle (EV) roadmap for the region. In 2018, only 23,400 hybrid EVs (HEVs) and 3,700 battery EVs (BEVs) and plug-in HEVs (PHEVs) were commercialized in Latin America. By 2025, the HEV market is expected to reach 114,700 units at a compound annual growth rate (CAGR) of 25.5%, PHEV will top 20,300 units at a CAGR of 36%, and BEV will touch more than 23,300 units at a CAGR of 49.6%.
"In recent years, there have been numerous EV-related disruptions such as e-taxi and e-bus pilot programs, fleet acquisition targets by logistics and utility companies, local design and manufacturing of fully electric micro-cars (in Mexico, Brazil and Argentina), and even some BEV carsharing and car rental services," said Martin Singla, Mobility Research Analyst. "OEMs will be looking to optimize these opportunities through collaborations and convergences with utility companies, petrol stations, mobility companies, civil associations and EV charger manufacturing companies."
Frost & Sullivan's recent analysis, Analysis of the Latin American Electric Vehicle Market, Forecast to 2025, covers the emerging nine Latin American e-mobility markets of Argentina, Brazil, Chile, Colombia, Costa Rica, Ecuador, Mexico, Paraguay, and Uruguay. The technology segments analyzed are HEVs, PHEVs, and BEVs in the light vehicles market. It also includes trends analyses, notable experiences, and potential market growth opportunities for corporate fleets, e-taxis, e-buses, ICE-to-BEV retrofitting startups, and micro-mobility vehicles such as e-bikes and e-scooters.
For further information on this analysis, please visit: http://frost.ly/3yc
"OEMs need to engage in constant dialogue with government authorities to define regulatory frameworks and transform the constantly aging operational vehicle parc over the next decade," noted Singla. "Continued expansion of their EV offerings, incentives, customer awareness and associated charging infrastructure will be crucial for future growth."
In addition to consolidating the EV shared vision and synergies with mobility innovators, startups and associations, EV OEMs can tap additional revenue opportunities by developing strategies for high-potential countries, such as:
- Chile, which will be among the most competitive and attractive hybrid and electric EV markets from 2020 to 2025 due to the collaborations between the private and public sectors.
- Brazil, where there is huge potential for technologies such as flex-hybrids.
- Mexico and Brazil, which are expected to be the largest markets in absolute figures, while Colombia and Chile will be the fastest growing.
- Uruguay and Ecuador, which have announced incentives and financing programs to promote e-bus adoption in local fleets and have some of the largest penetration rates of hybrid technologies over the total market.
Analysis of the Latin American Electric Vehicle Market, Forecast to 2025 is part of Frost & Sullivan's global Automotive & Transportation Growth Partnership Service program.
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Analysis of the Latin American Electric Vehicle Market, Forecast to 2025
SOURCE Frost & Sullivan