The electric vehicle industry in Brazil is in a period of growth and transformation, and promises to heat up even more with government incentives and the arrival of investments and new assemblers in the country. Following a global trend of seeking more sustainable solutions for transportation, the Brazilian government launched the Green Mobility and Innovation (Mover) program at the beginning of 2024, with the aim of expanding the decarbonization of the automotive fleet. The project was discussed and approved by Congress and the Senate, and, on June 27, 2024, it was sanctioned by President Lula, despite the controversial inclusion of an import tax on international purchases of up to US$50. But after all, with the approval of Mover, what advances will we see in the electric vehicle industry and how could this impact national logistics in the coming years?
Among the main measures of the Mover are the implementation of carbon emissions measurement and the creation of tax incentives, such as the IPI Verde, which offers tax reductions for companies that invest in decarbonization technologies and meet sustainability requirements. With the incentive, automakers such as Volkswagen, the Chinese BYD and GWM, among others, have already announced investments over the next few years that total tens of billions of reais. These developments indicate that Brazil could become an important hub for the production and consumption of electric vehicles in Latin America. While some of the investments will be focused on passenger vehicles, there is also room for the development of alternatives for cargo transportation.
Brazil currently has some electric truck models, but their widespread use faces some challenges, mainly related to charging infrastructure and vehicle autonomy. Among the models available today, most fit into the category of lighter trucks, ideal for urban operations, with autonomy ranging from 100 to 200 km. Their payload capacities range from 4 to 7 tons, with some models capable of supporting up to 12 tons. One detail to be noted is that current electric trucks are generally heavier than their diesel equivalents due to the weight of the batteries, which, depending on the model, can reduce the payload capacity by up to 20% within the same PBTC (Gross Combined Weight) range, which is the maximum permitted weight of the vehicle including the cargo, the truck itself and the implement, such as a box or body.
Figure 1: Volkswagen e-Delivery 11 and 14 electric truck models. (Source Volkswagen)
For longer distances, the scenario is still little explored, but brands such as Volvo, Ford and Mercedes-Benz may launch new models of heavy electric trucks in 2024, with a gross vehicle weight of up to 44 tons and a range of between 300 and 400 km. In April/24, the Ministry of Transport officially authorized the start of operations of Volvo heavy electric trucks in the country. Still in experimental mode, the trucks are mainly intended for use in urban areas, metropolitan regions and for short and medium-distance intercity transport.
With investments and the arrival of new automakers in the country, competition and the number of electric truck models available are expected to increase. The main differences that will be observed are the autonomy of the vehicles, the payload capacity in relation to the PBTC, and the shorter recharging time. Improving the autonomy of the vehicles and faster recharging times are essential to overcome the current infrastructure challenges, which still do not have a wide network of recharging stations, especially those that serve trucks. These advances help to expand the reach of electric trucks, and will be essential for their use not only in urban areas, but also on intercity and long-distance routes.
In conclusion, the Mover program represents a significant step towards the future of electric mobility in Brazil. The combination of tax incentives, infrastructure investments and the arrival of new models on the market should accelerate the adoption of electric vehicles. This movement not only contributes to reducing carbon emissions, in line with global environmental commitments, but also drives innovation and economic development in the country.
References
- Autosport (27/06/2024) – Mover, Brazil's new automotive program, is sanctioned by Lula (globo.com)
- Mordor Intelligence – Heavy Duty Trucks- Market Share, Industry Analysis and Statistics (mordorintelligence.com)
- Volvo Group (10/04/2024) – Volvo's 100% electric heavy-duty trucks begin operating in Brazil on a trial basis (volvogroup.com)
- Brazilian Electric Vehicle Association – ABVE (03/07/3034) – With June sales, the market reaches 80 thousand electrified vehicles in the first half of the year and 1 thousand in circulation – ABVE
- INTC Portal (10/07/2024) – Market perspectives: Infrastructure for electric trucks in Brazil – NTC&Logística (portalntc.org.br)
