Brazilian battery electric vehicle (BEV) sales reached an all-time monthly high of 6,969 units in May because of improving charging infrastructure and greater consumer familiarity with the vehicles, according to the Brazilian EV association ABVE.
After four months of below-average BEV sales in Brazil — driven by record-high consumer demand for hybrid electric vehicles (HEVs) — sales of fully electric models rebounded in May, rising by 35pc from a year earlier. Sequentially, BEV sales surged 48.2pc from April's 4,702 units, ABVE data showed.
In May, fully electric vehicle sales grew in all but two states compared with April. The Northeastern region, characterized by less-developed charging infrastructure outside major urban centers, saw the highest monthly growth. Sales rose by 59pc to 1,665 units in May from the prior month, according to data from ABVE.
Chinese automaker BYD further increased its dominance in the Brazilian EV market, accounting for 5,596 units sold, more than 80pc of all BEV sales in May. Volvo and fellow Chinese producer Great Wall Motors (GWM) closed out the top three at 514 and 181 units, respectively.
BYD does not see this spike as a seasonal or isolated phenomenon, but as a new reality in the Brazilian auto market, which is getting used to EVs, according to the company's senior VP in Brazil, Alexandre Baldy. "We are increasingly growing our dealership network in Brazil at 180 stores," Baldy told Argus on Thursday. "We'll reach 272 stores by the end of the year, solidifying our presence in all regions of the country."
Between April and May, BYD opened 15 new dealerships, focusing on more remote regions such as the Midwest and Northeast.
ABVE cited, in a release, the scaling of new brands and models, along with improving charging infrastructure, as reasons for the high demand for rechargeable vehicles, such as BEVs and plug-in hybrids (PHEVs). Rechargeable vehicles make up 87pc of all EVs in Brazil, according to ABVE.
May was the first full month for two Chinese carmakers that recently debuted in Brazil: Omoda and Jaecoo, both subsidiaries of the Chery Auto Group, which has been in the country since 2009. The brands share dealerships, with Omoda marketing BEVs and Jaecoo aiming for the PHEV market. They sold a combined 398 units, according to Fenabrave, a private body that represents car dealerships in Brazil.
Hybrid vehicle sales keep growing
HEV sales continued to grow at a strong pace in May, rising by 81pc to 15,160 units over the year.
Sequentially, HEV demand nudged up 1.5pc from April's 14,927 units.
Brazilian consumers tend to prefer hybrids — plug-in or not — because of the lack of charging infrastructure outside of major urban centers, although PHEVs are the preferred choice because of their flexibility to alternate between a fully electric driving experience and a regular, gas-powered one.
May's PHEV sales rose by 95.2pc over the year but fell 4.2pc sequentially from April because of the shift in demand towards BEVs.
Total EV sales in Brazil — encompassing BEVs and HEVs — hit 22,101 units in May, a 63.3pc increase over the year and up by 12.7pc from April. EVs make up 13.2pc of Brazil's total car market.
HEVs: Fiat tops BYD as best-selling brand
In May, Fiat overtook BYD as the best-selling HEV brand in Brazil, marking the first time since July 2024 that the Chinese automaker has lost the top spot in the market.
Fiat, which debuted in the HEV market in November 2024, quickly took advantage of its status as a traditional, well-known brand among Brazilian consumers to become a leader in the segment. It sold 4,299 hybrid units in May, besting BYD's 3,702, according to data from Fenabrave.
HEV sales for the Italian automaker rose by 9pc in May from the previous month, pushing its market share to 28.3pc.
BYD, meanwhile, saw its HEV sales drop by over 1,000 units in May from the prior month, as demand shifted towards its fully electric models, which posted record sales. Despite the monthly decline, BYD's HEV sales were up 137pc on the year. The company held a 24.4pc market share in May — down 7.3 percentage points from 31.7pc in April.
Fiat — a Stellantis subsidiary — markets two models of mild-hybrids (MHEVs), a regular internal combustion vehicle with a small 12V or 48V non-plug-in battery that assists the gas-powered engine and improves fuel efficiency. Despite the battery not powering the wheels, MHEVs are eligible for environmental tax exemptions and other governmental benefits just like more traditional EVs.
By Pedro Consoli
