In Brazil, the hybrid car market is gaining momentum as electric vehicle (EV) sales slow down in multiple markets due to dwindling government incentives and insufficient charging infrastructure.
Positioned as a leader in hybrid vehicle production, Brazil seeks to become a reference in the segment.
At Toyota’s factory in Sorocaba, 100 km from São Paulo, a 38.4 kg battery is fitted under the seats of certain cars.
This battery powers an additional electric motor, which generates energy through the braking system and stores it for use by a propulsion system.
This allows the car to run for up to 40 km on electric power alone, while the gasoline or ethanol-powered combustion engine handles the rest of the journey.
This blend of technologies makes Brazilian flex hybrids both economical and environmentally friendly.
In Sorocaba, where Toyota manufactures the Corolla and Corolla Cross models, about 20% of the cars include this additional battery.
By combining an electric motor with a flex-fuel combustion engine, hybrid vehicles emit 39% less CO2 than conventional gasoline cars. In flex hybrids using ethanol, emissions drop by up to 78%.
Since becoming the first automaker to produce hybrids in Brazil in 2019, Toyota has emphasized that a well-distributed ethanol supply network across the country guided its choice of flex hybrids.
The company’s spokesperson, Roberto Braun, highlighted the insufficient charging infrastructure for electric vehicles.
Global EV sales are slowing down due to the loss of incentives and charging challenges.
In Germany, electric vehicle sales dropped by 30% after government subsidies were removed. The U.S. is also experiencing declining EV sales amid stock surpluses.
Meanwhile, Brazil is focusing on hybrids, backed by its biofuel network and a newly launched government initiative.
The Mover program will invest R$ 19.3 billion ($3.78 billion) by 2028 in clean automotive tech, promoting hybrid vehicle growth.
Hybrid Focus in Brazil’s Automotive Industry
Though some Chinese companies, like BYD, plan to produce fully electric vehicles locally, most manufacturers are doubling down on hybrids.
The Great Wall Motors (GWM) factory, due to open later this year, will initially produce only hybrid plug-in SUVs.
According to studies by the consultancy LCA and economist Luciano Coutinho, transitioning directly to electric cars would result in a R$5 trillion ($980.39 billion) loss over the next 30 years.
On the other hand, hybrid cars could bring a R$2.4 trillion ($470.59 billion) increase in automotive revenue. This would occur while maintaining the current production network and job market.
In 2023, Brazil sold 93,900 hybrid and plug-in hybrid vehicles, 90% more than the previous year. Fully electric cars accounted for just 19,300 units, highlighting the country’s hybrid focus.