Stellantis, owner of Fiat, Peugeot, Citröen, and Jeep, plans to commence production of its first flex hybrid vehicles, which integrate ethanol and electricity, in Brazil by 2024.
The move is a strategic response to the growing electric vehicle competition in Latin America’s largest economy.
Ranked the fifth largest automaker globally in sales, Stellantis has three prototypes integrating electric engines with ethanol and a purely electric one, as shared by Antonio Filosa, the group’s South American president.
He forecasts that approximately 60% of the group’s sales by 2030 will comprise biofuel hybrid technology vehicles.
“Brazil’s large automotive market and unparalleled flexibility need to be leveraged,” Filosa stated at a press briefing at the group’s development center in Betim, Minas Gerais.
“We possess multiple technologies, nearly complete protection against the dollar as we import few components, thus enhancing our competitiveness.”
The flex hybrid race is on, with Stellantis and Volkswagen vying to be the first to introduce the ethanol and electric solution on Brazilian roads.
Volkswagen plans to roll out 15 electric and flex vehicles by 2025, with hybrid models to be launched later.
Hybrid or pure electric vehicle sales accounted for just 2.5% of the total in Brazil last year, according to Anfavea, a group representing automakers in Brazil.
According to Bright Consulting, the projected growth of these technologies is anticipated to reach 7% of light vehicle sales by 2030, well below the estimated global average of 37%.