Market Overview:
The Brazil flexfuel market involves sales of vehicles that can operate on various mixtures of gasoline and ethanol. Flexfuel vehicles offer the flexibility to drivers to choose between gasoline and hydrated ethanol (gasohol) as fuels. Brazil has emerged as one of the largest flexfuel vehicle markets globally due to widespread availability of ethanol in the country. Ethanol is popular in Brazil as it is a renewable source produced from sugar cane and helps in reducing reliance on imported petroleum. Brazilian automakers provide efficient flexfuel technologies allowing drivers to opt for cheaper ethanol during low gasoline price periods.
Market key trends:
One of the key trends in the Brazil flexfuel market is increasing adoption of more efficient new generation flexfuel vehicles. Automakers are focusing on developing latest flexfuel technologies with improved engine calibrations to enhance fuel efficiency and performance on both gasoline and ethanol. For instance, Subaru Corporation launched its new generation flexfuel Forester in 2022 featuring direct fuel injection technology delivering better fuel efficiency of up to 30% on ethanol compared to earlier flexfuel vehicles. Growing consumer preference for dual-fuel mobility and emissions reduction is also driving automakers to offer diesel and CNG flexfuel variants.
Porter’s Analysis
Threat of new entrants: The Brazil Flexfuel market has moderate threat of new entrants due to established presence of key players and requirements of huge capital investments and resources for manufacturing flexible fuel vehicles.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of different product segments and brands of vehicles. However, preference for fuel efficient vehicles increases their power.
Bargaining power of suppliers: Major suppliers like fuel providers and automotive components providers have moderate-to-high bargaining power due to established supply networks and suppliers being import dependent for some components.
Threat of new substitutes: Threat of new substitutes is moderate as electric vehicles are emerging but lacks capabilities to replace flexfuel vehicles completely in Brazil market currently.
Competitive rivalry: The market experiences high competitive rivalry due to presence of established automakers different product offerings.
Key Takeaways
Brazil Flexfuel Market Demand is expected to witness high growth, exhibiting CAGR of 7.2% over the forecast period, due to increasing adoption of fuel efficient vehicles. The market size is estimated to reach US$ 19.83 billion in 2023.
Regional analysis: Brazil dominates the South America flexfuel market with over 80% share due to availability of ethanol derived from sugarcane in the country. Countries like Argentina and Colombia are fastest growing markets due to government support for flex fuel vehicles and increasing investments by automakers.
Key players: Key players operating in the Brazil Flexfuel 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.
Explore More- https://www.ukwebwire.com/brazil-flexible-fuel-vehicle-market-size-share-and-demand/
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