Electric vehicles<\/p>
Electric vehicle (EV) may be used as an umbrella term to refer to any electrified vehicle, though it is most commonly associated with battery electric vehicles<\/strong> (BEV), which are 100% electrified. <\/p> Meanwhile, hybrid vehicles<\/strong> (HEV) combine conventional combustion engines with electric motors.<\/p><\/div><\/div>\n\n\n\n \u201cWhen the share [of electric vehicles] approached 5% in other countries, the growth curve became exponential,\u201d said Thiago Sugahara, director of ABVE and ESG manager at Chinese carmaker Great Wall Motors\u2019 Brazilian subsidiary, in a broadcast<\/a> in July.<\/p>\n\n\n\n In addition to the leap in sales, two major investment announcements have shaken up the Brazilian market.<\/p>\n\n\n\n First, in 2021, GWM acquired a former Mercedes Benz plant in Iracem\u00e1polis, S\u00e3o Paulo state, and also announced<\/a> plans to invest 10 billion reais (US$2 billion) in the country by 2032. Production of hybrid and electric vehicles, including SUVs, is set to begin in 2024.<\/p>\n\n\n\n GWM Brazil\u2019s director of institutional affairs, Ricardo Bastos, told Di\u00e1logo Chino that the plant will initially have capacity to produce 50,000 vehicles per year, an output that could eventually rise to 100,000 per year. \u201cFor this capacity\u2026 we are counting on exports,\u201d he added, with other countries within Latin America the likely destination.<\/p>\n\n\n\n The second major investment was made this year by BYD, the world\u2019s largest manufacturer of electric and hybrid vehicles, and arrived in a somewhat symbolic location for the energy transition: the Cama\u00e7ari complex in the state of Bahia, one of the largest<\/a> petrochemical centres in the southern hemisphere.<\/p>\n\n\n\n The agreement took shape<\/a> during Brazilian president Luiz In\u00e1cio Lula da Silva\u2019s visit to China<\/a> in April, before BYD announced<\/a> in July the investment of 3 billion reais ($620 million) in three factories within the complex: one to produce chassis for electric buses and lorries, another for hybrid and electric cars, and a third to process lithium and iron phosphate, to be exported for the manufacture of vehicle batteries.<\/p>\n\n\n\n The first 100% Brazilian EV, the BYD Dolphin, will roll out of Cama\u00e7ari, with the model already ranking as one of the most popular imports<\/a> in the country. \u201cBrazil is one of the most important automotive markets in the world and, for BYD, it will be the hub of Latin America,\u201d said Alexandre Baldy, an advisor to BYD in Brazil. \u201cIt will introduce green tech to the Amazon country, opening up the market to the rest of the region.\u201d<\/p>\n\n\n\n Other notable announcements have arrived in recent years. In 2022, Chinese electric bus manufacturer Higer Bus declared<\/a> its intention to invest $50 million in a factory in the port of Pec\u00e9m, in the north-eastern state of Cear\u00e1 \u2013 a region also being targeted for the production of green hydrogen in Brazil<\/a>. In a meeting with vice-president Geraldo Alckmin, in July, Higer\u2019s Latin America director, Marcelo Barella, said<\/a> the company wants to make Brazil its export base for Latin America.<\/p>\n\n\n\n Elsewhere, Swedish carmaker Volvo, now majority-owned by Chinese company Geely, announced<\/a> last year investments of 881 million reais ($181 million) at its plant in Curitiba, Paran\u00e1 state, earmarked for research and development on decarbonisation. By 2025, Volvo, which has some of the best-selling EVs<\/a> in Brazil, expects to invest a total of 1.5 billion reais ($308 million) in the country.<\/p>\n\n\n\n Car company representatives consulted by Di\u00e1logo Chino spoke of Brazil offering competitive advantages to become a regional hub for electric vehicles. <\/em>They pointed to the country\u2019s existing auto industry facilities, which already cover diverse stages of production, from the manufacturing of parts to assembly, as well as its predominantly clean energy mix based on hydroelectric power, plus reserves of lithium<\/a>, which is essential for EV battery production.<\/p>\n\n\n\n![\"A](\"https:\/\/dialogue.earth\/content\/uploads\/2023\/11\/Alckmin_Brazilian_vice-president_visits_EV_factory_in_Iracemapolis_SP_creditGWM.jpg\")
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