Chinese Higer Group to produce electric and hydrogen buses in Brazil for Latam market

Chinese company Higer Bus will invest US$50 million (about R$260 million) in an electric bus factory in the Pecém region of Fortaleza (CE) to exploit the potential of the urban segment in the country.

The company has already invested US$10 million (approximately R$50 million) in developing a vehicle for the Brazilian market, which has just received approval.

It plans to offer hydrogen buses assembled in the national market as a second step.

The Group also plans to produce heavy trucks using this fuel locally.

In Brazil, the company is represented by TEVX Motors Group, and the local assembly project ensures supply to the entire South American market.

“We identified Brazil and South America as the largest markets in the city bus sector,” he said.

In its expansion plan, Higer saw the opportunity to enter this business, especially with the bus electrification project in São Paulo,” says Marcelo Barella, general manager of Higer Bus for South America.

The general manager highlights that the São Paulo city government has committed to buying 2.6 thousand electric buses by 2024, which should lead to a great demand in this segment.

São José dos Campos (SP) also plans a fleet of at least 400 city buses. Cities such as Curitiba, Niterói (RJ), Recife, and Salvador have also launched electric mobility plans.

The Ceará plant is scheduled to begin operations in 2024, with an initial capacity of 300 to 400 buses per year and investments of around US$20 million (R$103 million).

The line will be 100% electric plug-in buses (battery-powered, charging directly from the socket).

It is planned to double production capacity between 2026 and 2027, when the second stage of the plant, which will gobble up US$30 million (R$155.3 million) in investments, comes on stream.

HYDROGEN BUSES

According to Barella, the Group also plans to expand production to hydrogen-powered trucks.

According to the general manager, the company has opted for the heavy-duty range in Brazil – so battery models do not make sense because the bigger the truck, the bigger the battery and, consequently, the lower the load capacity.

“We chose Ceará because we found that it is the largest hydrogen development center in the country today.”

The charging infrastructure for 100% electric vehicles is one of the main obstacles to the expansion of this market in the country, according to Milad Kalume Neto, director of business development at automotive consultancy Jato Dynamics.

“Electric vehicles of all sizes still have a big problem in the Brazilian market: we don’t have enough charging stations. In the case of buses, we have to consider that these vehicles stop and charge for a significant part of the day,” Neto says.

According to the expert, battery autonomy is a crucial problem for the electrification of fleets worldwide.

On the other hand, Neto notes that the operating costs of electric vehicles are generally lower because these vehicles have far fewer parts.

“In the medium and long term, the savings are great, despite the higher initial investment.”

For Cassio Pagliarini, partner at Bright Consulting, the skyrocketing price of lithium due to the war in Ukraine is an additional factor hindering the spread of 100% electric vehicles.

“The bigger the vehicle, the higher the price; the batteries are costly,” he assesses.

With information from Exame

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