Brazil Revs Up For Jolt Of Hybrid Car Investments

Sumaira FH Published March 14, 2024 | 08:10 AM

Rio de Janeiro, (APP - UrduPoint / Pakistan Point News - 14th Mar, 2024) Brazil is charging up for a hybrid revolution as global car manufacturers race to pump billions of Dollars into the development of green vehicles in Latin America's biggest economy.

Globally, hybrid cars sales are booming, offering consumers fuel savings, sustainability, and the assurance that they won't find themselves stranded far from a public charging station in a fully electric vehicle.

Brazil, with its population of over 200 million people, is seeking to incentivize the local production of less polluting vehicles, and automobile giants are raring to go.

This month, Stellantis -- which owns several major car brands, with electrified Jeep, Peugeot, and Fiat products -- vowed "the biggest (investment) in the history of the Brazilian and South American automobile sector."

The company said it would invest $6.1 billion in the region between 2025 and 2030, of which Brazil would be the biggest beneficiary.

Toyota, which has bet bigger on hybrids than fully electric cars, announced it would pump $2.

2 billion into Brazil until 2030.

Other big Names such as Volkswagen, Renault, Nissan, General Motors, BYD and Hyundai have also announced plans to produce electric and hybrid vehicles in the country.

The National Association of Motor Vehicle Manufacturers (Anfavea) estimates Brazil will receive about $23.4 billion in automobile investment in the coming years.

Anfavea president Marcio de Lima Leite said there was "zero coincidence" that the investments were flowing in and would largely center on hybrids -- which combine a battery-powered electric motor with an internal combustion engine.

The flurry of activity comes after the government announced it would "gradually increase import taxes for these new technologies" to incentivize domestic production of electric or hybrid vehicles.

President Luiz Inacio Lula da Silva also recently created a program granting 3.8 billion dollars in tax credits to automakers that commit to "investing in decarbonization."