No reason to invest in electric car in Brazil

The development of electric vehicles is one of the great challenges of global automobile industry and the Brazil, without encouraging the production of this type of car can be left behind in the technological race. However, apart from that, the country has few reasons to invest in this technology, according to a study of Maksen, done in partnership with associate professor and the Lisbon MBA.
According to the consultancy, the Brazil is reduced motivations for developing electric cars from an environmental point of view and from the market, as well as the diversification in the energy matrix. Even with the reduction in production costs, the electric motors will follow, until 2020, two times more expensive than traditional gas-powered propulsion systems.
As consumers are very price sensitive and there is no expectation of significant cost cuts, the study of Maksen concludes that the market is unlikely to lead to the development of this technology in Brazil.
The direction of the Brazilian subsidiary of Nissan has argued that, to be viable, the price of your electric model, the Leaf, would have to be close to what they paid in the country by the Civic, the Honda sedan. However, even if the taxes, the price difference between the two cars is today close to $ 13 million. A Deloitte Research indicates that most Brazilian consumers-65%-would consider buying an electric vehicle only if the price was equal to or lower than those of conventional cars. Only 3% of respondents considered acceptable pay $ 7,000 more for a car of this type.
So, automakers do not diverge in saying that, without the support of the Government, the introduction of the electric market becomes infeasible. Maksen's work follows the same line and measures in r $ 1 billion annual subsidies needed to make a market of 46 thousand electric vehicles per year.
The amount, says the survey, represents less than 1% of the budget for the Government's investment and 12% of Petrobras fuels subsides. The entry model passes through grants and loans to consumers and businesses, the quotas for this type of vehicle in public transportation and the installation of charging zones in special locations. At the same time, says the study, it is necessary to give advantages to those who buy electric cars, such as preferential parking, releasing use of bus lanes and exemption in movement restrictions in major cities.
However, the Government also has few reasons to encourage technology. From an environmental point of view, Brazil already has an array of highly renewable energy consumption and is far from the major polluters of the world-occupies the 105 place of CO2 emissions per capita. In addition, the country has reduced energy dependence and oil exporter.
"Whereas Brazil is not dependent on oil imports and has been building new refineries, it is inconsistent to think of replacing the current model in the short term," says Sergio of mount Lee, partner at Maksen in Brazil.
Leading the race for the next car technology would, therefore, the only reason that would justify an onslaught in this market. In this case, Maksen recalls vxrs have proved technological leadership with the development of flex cars that work with both ethanol and gasoline. The problem is that some countries-including China, more competitive in terms of costs of production--already came out in front in the polls on the electric car.
Nevertheless, the position of the electric propulsion systems as the dominant technology in the future also begins to be relativized in other parts of the world, as environmental concerns are in the background between the variables that influence the purchase decision. A survey prepared by KPMG with 200 automotive industry executives in 31 countries indicates that internal combustion engines are ahead of electric or hybrid technology in the plans of investment in research and development of the sector.
Little more than half of those who responded to the survey see the improvement of conventional engine as the best way to achieve clean and efficient systems in the next ten years. Thus, 29% of executives say their companies will invest in size reduction and improvement of performance of these engines. The technologies of hybrid vehicles were cited by 24% of respondents, while only 8% predict investments in purely electric vehicles.
"Two years ago, we were convinced that the electric car would be the future. But part of the investment would go to this technology will be directed to the improvement of internal combustion engines, "says Charles During, partner of KPMG in Brazil.