The Brazil Flexfuel 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.
Brazil flexfuel vehicles have the capability to run on any combination of gasoline and ethanol. Ethanol is produced from renewable resources and hence flexfuel vehicles help in reducing carbon emissions as compared to conventional gasoline vehicles. The growing need to curb pollution levels and transition to clean mobility solutions is driving the demand for these vehicles in Brazil.
Market key trends:
The growing adoption of electric and hybrid vehicles in Brazil is a major trend supporting the demand for flexfuel vehicles. With ethanol being produced indigenously, flexfuel vehicles help reduce the country’s dependence on imported gasoline. The Brazilian government is actively promoting the development and sale of such environment-friendly vehicles through fiscal incentives and initiatives. Furthermore, consumers are increasingly recognizing flexfuel technology as an affordable alternative to fully electric vehicles. Flexfuel vehicles allow drivers flexibility in terms of fuel choice and their well-established fuel infrastructure makes them a preferred smart mobility option.
Threat of new entrants: Low-moderate. Established players dominate the market and new entrants require significant investments in R&D and production facilities.
Bargaining power of buyers: Moderate. Buyers have moderate bargaining power due to availability of alternative substitutes.
Bargaining power of suppliers: High. Suppliers have high bargaining power as parts require specialized engineering capabilities.
Threat of new substitutes: Low. Few alternatives are available for flex-fuel vehicles.
Competitive rivalry: Intense rivalry between established players.
Strengths: Growing demand for cleaner vehicular fuels. Government incentives and subsidies promoting flex-fuel vehicles.
Weaknesses: High initial costs of flex-fuel vehicles. Lack of widespread flex-fuel infrastructure limits the driving range.
Opportunities: Rising environmental consciousness offering opportunities. Technological advancements enabling cost reductions.
Threats: Slow expansion of flex-fuel pumps limits adoption. Economic slowdowns can negatively impact sales.
Brazil Flexfuel Market Demand is expected to witness high growth, exhibiting CAGR of 7.2% over the forecast period, due to increasing demand for eco-friendly vehicles. Brazil dominates the market and is estimated to maintain its leading position during the forecast period due to supportive government initiatives like tax exemptions for flex-fuel vehicles and biofuel blending mandates.
Regional analysis: Brazil represents more than 95% of flex-fuel vehicle sales in Latin America. The country has emerged as an epicenter for flex-fuel technology with over 90% of new light vehicle sales registered as flex-fuel variants. The flourishing Brazilian automotive industry coupled with rising gasoline prices is expected to drive further adoption of flex-fuel vehicles.
Key players: Key players operating in the Brazil Flex-fuel 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.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it