Seeing growth for battery-electric vehicles in South America and Central America, General Motors is launching its Chevrolet Blazer EV in Brazil this month.

Demand for BEVs in Brazil is experiencing significant growth, with projections indicating a promising future despite challenges.

In 2023, BEV sales in Brazil nearly doubled from the previous year, reaching approximately 93,927 units, according to The Brazilian Report. The Association of Electric Vehicles (ABVE) predicts sales could surpass 150,000 units in 2024, continuing the upward trajectory.

GM, which has a major presence in the region, is looking to divert some of its BEV production in the U.S. to compete with BYD and other Chinese BEV companies making early inroads.

BYD is leading BEV sales in Brazil after selling nearly 15,000 units in the country in the first three months of 2024. BYD is converting a former Ford plant into a BEV manufacturing facility.

Brazil was the sixth largest car market globally in 2023, with over 2.18 million new-car registrations, per Wards Intelligence.

The Brazilian government under President Lula da Silva is anticipated to support BEV adoption through incentives and charging infrastructure development. Lula’s administration has shown a pro-environment stance, which could lead to more robust support for BEVs and related infrastructure. The country has about 3,500 public and semi-public charging points, predominantly in urban areas, but more infrastructure development is needed to support widespread adoption, according to The Brazilian Report.

Long-term forecasts suggest Brazil’s BEV fleet could reach 2.8 million units by 2033, representing 2.5% of the domestic vehicle fleet, according to Fitch Solutions. This growth, says the firm, is being driven by increasing consumer demand for sustainable transportation options and new BEV makers entering the Brazilian market, offering a wider range of affordable options.

GM plans to invest BRL 7 billion ($1.4 billion) in Brazil through 2028, including BEV production investments.