Brazil EV Gross sales Report: Native EV Manufacturing Imminent as Gross sales Attain a New Document in Might

With over 14,000 EVs offered in Might (an all-time excessive) and year-on-year development of 63%, Brazil’s EV market appears to be gearing up for a document 2025. YoY gross sales have grown each month of this yr to date, and the market has already surpassed the degrees from December 2024, regardless of December being usually a document month. That is taking place whereas the nation will get prepared for native EV manufacturing: BYD and GWM will begin churning out the Dolphin Mini and the Haval H6 in July, of their Camaçarí and Iracemápolis factories respectively.

Brazil’s market is specific in Latin America insofar because it has not too long ago developed a transparent desire for PHEVs over BEVs. As such, in Might, BEVs “solely” grew 35% whereas PHEVs grew by a powerful 104%. Paradoxically, this month may very well be seen as a “restoration” for BEVs, as gross sales via 2025 had been falling previous to Might (with all development to date being due to PHEVs). In Might, gross sales figures for each powertrains had been practically equal, with 48% being BEVs and 52% being PHEVs:

The general market additionally introduced vital development in Might 2025, which means market share stays barely under the all-time document from March, earlier this yr. Nonetheless, market share has now remained three months above the 6% mark, exhibiting a consistency that we had not seen earlier than (the Brazilian market reached 5% EV market share in January 2024, fell once more via the entire yr, and solely recovered this determine in December):

The unhappy half is that, because of the total growth in gross sales, non-plug-in powertrains (HEV, MHEV, ICEV) rose by some 25,000 models. There’s a silver lining: even when development continues, the market is unlikely to surpass 3 million models, which remains to be under the document from 2012 (3.6 million models).

Market Overview

Brazil’s market stays dominated by BYD, however due to extra detailed information, we now know that there’s a critical contestant: GWM. Whereas BYD retains a lot of the marketplace for itself (64%), GWM has additionally risen due to the PHEV model of its Haval H6, an SUV that may begin manufacturing in Iracemápolis subsequent month. These two corporations principally personal the market (82%), with Volvo (5.5%) and BMW (2%) following behind. A notable point out is Jaecoo, a model from Chery that got here out of nowhere and is now sitting at #5 due to the PHEV Jaecoo 7, which is also produced in Brazil later this yr. We additionally see a shocking look from Land Rover, which obtained the ten^th place due to 93 models offered — Brazilians love their SUVs, and it exhibits.

Mannequin-wise, BYD will get gold (Track), silver (Dolphin Mini), and an extra 4 fashions within the prime 10. GWM will get the bronze with its Haval H6, and has one other mannequin within the prime 10: the Tank 300 PHEV, a rugged SUV with a large (for a PHEV) 37.1 kWh battery that jogs my memory of the previous Jeeps from WWII and the mid-20^th century. Elsewhere, we see the Volvo EX30 and the Jaecoo 7 as the one non-BYD, non-GWM fashions on the record. One thing I seen was that the BYD Yuan Up (or Yuan Professional, as  it’s referred to as on this market) is much from the success we see in different markets like Colombia or Uruguay, solely getting the 7^th place in Brazil.

By way of the yr, not a lot has modified: the highest 5 stays related, solely with Porsche changing Jaecoo as #5. We additionally see the looks of Mercedes-Benz and Audi, however, frankly, at 0.8% and 0.6% market share respectively, they appear virtually irrelevant within the grand scheme of issues.

Mannequin-wise, one thing fascinating is that the Tank 300 is just not on this record, because it solely arrived in Brazil in April, as an alternative being changed by the GWM Ora 03. We additionally see the Volvo XC60 alongside the EX30, which means Volvo will get two fashions within the prime 10:

Last Ideas

There are a number of tendencies arising in Brazil which might be price pointing to.

First, I mentioned it already, nevertheless it begs repeating: Brazilians love their SUVs. Regardless of the market having some profitable reasonably priced fashions (BYD Dolphin Mini, Dolphin, King; GWM Ora 03), a big a part of the expansion is pushed by premium SUVs just like the Haval H6, the BYD Track, and the Tank 300. Brazil is an enormous nation with a restricted fast-charging community (largely current within the South), and as I’ve talked about earlier than, it has made enormous investments in biofuels, which means there’s a logic on betting in long-range PHEVs and EREVs that will likely be utilized in electrical mode 90% of the time and can use ethanol for the opposite 10%.

Second, we’re lastly seeing some first rate development after what appeared like an eternity of relative stagnation. Due to the meteoric development of 2023, practically all of 2024 introduced year-on-year will increase, however the intra-year development was tepid and market share stood virtually stagnant the entire yr. In 2025, nonetheless, PHEVs have risen and BEVs are actually recovering misplaced floor, which means it lastly looks as if Brazil has comfortably surpassed the 5% mark and is now rising in direction of 10%.

Third, the “Sinification” of the Brazilian EV market is now full, and Legacy Auto is now merely an afterthought. This issues little in 2025 (as a result of non-plug-in gross sales continue to grow), however I wager it’s going to matter quite a bit after 2027, because the Chinese language have crushed each competitor not solely in bringing their automobiles to market, however in producing them domestically. Until Legacy Auto is able to quickly bringing costs down within the subsequent three or 4 years, it’s going to drown in unused capability because the market additional electrifies.

Most necessary of all, native manufacturing is lastly taking place. BYD’s and GWM’s EVs will change into an integral a part of the Brazilian industrial sector, and they’ll obtain the pure advantages native corporations accrue in industrially protected markets. Chery can be producing domestically — although, solely ICEVs for now. And GAC has introduced vital operations in Brazil, promising to show the nation into its largest hub exterior of China.

There’s an fascinating comparability to be completed between Latin America’s two largest economies: whereas Mexico has change into a hub for Legacy Auto, intricately linked to the worldwide economic system and to the massive US shopper market, Brazil has chosen a extra protectionist route and became an “island” solely meaningfully linked to its allies in Mercosur. Alas, with all the pieces taking place within the US, it appears it’s Brazil that has confirmed probably the most fascinating nation for main Chinese language manufacturers, whereas Mexico is now extra depending on Legacy Auto’s will to affect. Because of this, Brazil is ramping up EV manufacturing quicker (regardless of beginning later), electrifying quicker, and gaining an edge total as Mexico lags behind.

Native manufacturing may present a lift for Brazil EV adoption, bringing a brand new wave of development to this market within the second half of this yr. If something, it’s this that makes me hopeful we’ll see Brazil inch nearer and nearer to the ten% market share mark. What do you guys assume? When will we be reporting this milestone right here at CleanTechnica?