Companies join forces to stimulate electric car market in Brazil

RIO DE JANEIRO, BRAZIL – Nine companies in the urban mobility sector are getting together to launch a coalition that intends to make electric cars more accessible to Brazilians. The initiative is inspired by two of the 17 United Nations Sustainable Development Goals: item 7, to ensure access to clean and affordable energy sources; and item 11, to make cities and communities more inclusive and sustainable.

The Alliance for Sustainable Mobility is led by 99 and has CAOA Cherry, Ipiranga, Movida, Raízen, Tupinambá Energia, Unidas, and Zletric as members.

To make the model viable in the country, the alliance will discuss ways to boost the necessary infrastructure for the electrification of the Brazilian fleet. It includes creating public charging stations, reducing barriers to the acquisition of electric cars (financial barriers, for example), facilitating the rental of this type of car by app drivers, and helping with bottlenecks in the supply chain.

Thiago Hipólito, director of 99’s DriverLAb, responsible for developing the initiative and calling the partners, reminds that these cars have less environmental impact and can reduce fuel costs by up to 75%, “but they are still much more expensive than conventional cars,” he points out. “We built the alliance to make these models more accessible to drivers and the people who need them most,” he adds. 99 has a goal of having 100% of the app’s fleet of electric cars by 2030.

Not surprisingly, the alliance wants to involve related sectors such as the supply, manufacturing, rental, and app transportation sectors in the cause. If the auto industry doesn’t offer cars, the change pointer won’t change. If there is no interest from buyers, the industry doesn’t sell. If parts aren’t available, nothing comes of it. And if the price is not affordable, there won’t be enough demand.

According to data from the Brazilian Electric Vehicle Association (ABVE), in 2021, electric vehicle sales – which includes electric, plug-in hybrid, and hybrid models – grew 77% over the previous year, adding up to 34,990 units. Companies ordering less polluting vehicles for their chain drive much of the demand. The very supply problem of the combustion car chain also boosted the competing segment. Finally, although electric cars are more expensive, the more expensive fuel also made traditional vehicles more expensive, reducing the difference in total.

Even so, the industry and infrastructure for such fleets are still small in Brazil, and the prices – which easily exceed R$150,000 (US$31,000) – still make them unaffordable for most Brazilians.

With information from Valor Econômico