The Brazil Flexible Fuel Vehicle Market is estimated to be valued at US$ 19.83 billion in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Flexible fuel vehicles (FFVs) have engines capable of running on more than one fuel such as gasoline or ethanol blends. With rising oil prices and environmental concerns, flexible fuel vehicles provide economic and ecological benefits over conventional vehicles. FFVs reduce dependency on foreign oil and lower emissions through the use of biofuels.
Market key trends:
Favorable government policies promoting ethanol-blended fuels have led to increased adoption of flex-fuel vehicles in Brazil. The Brazilian government has established significantly lower taxes and subsidized fuel prices for biofuel blends compared to gasoline. This has made flex-fuel vehicles economically attractive for consumers and boosted their penetration in the country’s automotive market. Additionally, initiatives aimed at reducing carbon emissions through the use of renewable fuels are expected to further drive the flexible fuel vehicle sector in Brazil over the coming years.
The Brazil flex-fuel vehicle market is segmented into compact, mid-size, full-size, SUV/Crossover, and luxury. The compact segment dominates the market and accounted for around 35% share of the total flex-fuel vehicles sold in Brazil in 2023. This is primarily owing to the preference of Brazilian consumers for compact vehicles due to their fuel efficiency and affordability.
Brazil Flexfuel Market Demand is expected to witness high growth, exhibiting a CAGR of 7.2% over the forecast period of 2023 to 2030, due to the growing concerns regarding rising fuel prices and energy security among consumers in Brazil.
The Southeast region dominated the Brazil flex-fuel vehicle market in 2023 and accounted for approximately 30% of the total sales owing to the presence of major automobile manufacturing plants in this region. The Southern region is expected to witness the fastest growth during the forecast period due to increasing investments by OEMs in this region.
Key players operating in the Brazil flex-fuel vehicle market are Subaru Corporation, Chery Automobile Co. Ltd., Fiat Chrysler Automobiles, Ford Motor Company, General Motors Company, Honda Motor Co. Ltd., Hyundai Motor Company, Renault SA, BMW AG, Daimler AG, Nissan Motor Co. Ltd., Mazda Motor Corporation, Mitsubishi Motors Corporation, Toyota Motor Corporation, Volkswagen AG, Lifan Industry Group, BYD Auto Co. Ltd., JAC Motors, Changan Automobile Co. Ltd., BAIC Motor Corporation Ltd. Ford and General Motors are the two leading players in the market, owning around 25-30% share each owing to their well-established sales and distribution network in Brazil.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it