CRISIS! Will electric cars no longer be sold in Brazil? 1% of the fleet in circulationFind out if the sale of electric cars could enter into a crisis and why Brazilians are still opting for more “traditional” vehicles.
The introduction of electric cars in the Brazilian market generated great expectations, both from automakers and consumers.
The promise of a more sustainable future and less dependent on fossil fuels seemed to be consolidating.
However, the reality of the current automotive market shows a different trajectory, marked by unexpected challenges.
With a still timid presence on the streets and a series of factors that complicate their mass adoption, electric cars are facing a certain crisis.
The lack of demand and rapid depreciation are just some of the obstacles the sector is facing in Brazil. Low presence of electric cars in rental companies.
One of the sectors most impacted by the crisis of electric cars in Brazil is the vehicle rental sector, which historically accounts for half of car sales.
Despite its importance to the automotive market, rental companies have shown little willingness to invest in electric cars.
Currently, rental companies have only 4.3 thousand electric vehicles and 6.8 thousand hybrids in their fleets, which represents less than 1% of the total.
The country’s largest rental company, Localiza, ended 2023 with only 2.7 thousand electric and hybrid vehicles in a total fleet of 631 thousand cars.
The difficulty in commercializing these models, especially those purchased about three years ago, is a direct reflection of the rapid depreciation faced.These cars were resold at prices much lower than expected, with depreciation between 40% and 45%.
The main reason for this phenomenon was the arrival of Chinese brands in the Brazilian market, which brought more affordable models with more advanced technologies.
Effect of the depreciation of these vehicles is notableThe depreciation of electric cars has been one of the main factors that inhibit their expansion in Brazil.
Rental companies that invested in the acquisition of electric vehicles a few years ago are facing huge losses when trying to resell these models.
Movida, one of the first companies to bet on electric cars, acquired around 600 vehicles in 2021, including models like Nissan Leaf, Renault Zoe, Fiat 500e, and BMW i3.However, less than two years after the purchase, many of these vehicles remained stuck in the yards due to low demand and were sold with depreciation of up to 40%.
In addition, companies are reconsidering their strategies for acquiring electric vehicles. The Movida group, for example, suspended the purchase of a batch of 250 BYD Tan cars that was scheduled for 2022.Outside of Brazil, the scenario is also worrisome.
The rental company Hertz in the United States canceled the purchase of 100 thousand Tesla vehicles, citing the rapid depreciation of pre-owned electric cars.Growth in sales still far from the ideal scenario.
Despite the difficulties faced by rental companies and the depreciation of electric cars, sales of these models continue to grow.
According to Enilson Sales, president of Fenauto, sales of electrified vehicles increased by 90% between January and July 2024, totaling 33 thousand units sold.
However, this growth is driven, in large part, by vehicles with up to three years of use, representing 83% of the total.Meanwhile, combustion vehicles continue to dominate the used car market, with a 9% increase in sales compared to 2023.
The challenge, therefore, is to balance the demand for electric and hybrid vehicles with the still strong appeal of combustion models.
