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Brazil Electric Bus Market by Technology Pure Electric, Parallel Hybrid, Series Parallel Hybrid, and Series Hybrid Growth and Demand Forecast, 2013-2025
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The first electric bus in Brazil was launched at Sao Paulo in 2014. The module of the bus was made in Brazil, and the batteries and recharge systems were delivered by Mitsubishi Motors (a Japan based company). The bus has a capacity to carry 124 passengers, and can cover 125 miles on a single charge. Owing to high degree of air pollution in Sao Paulo, the government in Brazil is planning to replace its diesel-powered buses with low-emission buses by 2020.
The market in the country is mainly driven by factors such as rising focus on charging infrastructure. Present charging infrastructure in the country is focused only around Sao Paulo and Rio de Janeiro, though it is projected to strengthen across other key states, namely, Pernambuco, Sergipe, and Ceara. The roadblocks to the growth of the market include inadequate judicial support, strong disagreement from pro-Ethanol groups, limited charging infrastructure, and high initial procurement cost of electric bus.
Brazil has been the electric bus market in Latin America. The country produces more than 85% of its electricity from renewable sources and is dedicated to tackle environmental change by proactively reducing greenhouse gas (GHG) footprints and endorsing new sources of renewable energy. Unlike developed economies or even emerging markets, the Brazilian government offers very few incentives for electric bus adoption.
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In October 2012, Brazilian government approved INOVAR-AUTO, a new program to boost vehicle technology innovation, which fostered market competitiveness by reassuring automobile vendors to manufacture more efficient, safer, and technology-advanced vehicles. This program is continuously helping the Brazilian automotive manufacturers and buyers to shift their focus to electric vehicles. The country has the potential to become one of the largest markets of electric buses in Latin America in coming years.
Players in the Brazilian electric bus market is more focused on enhancing their product and innovating new products through various strategic approaches. Various international players are also paving the way for electric vehicles in Brazil. For instance, BYD Company Limited, announced to expand its Brazilian operations with new PV solar panel and electric bus chassis production.
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