How can Brazil accelerate the migration to the electric car?

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The Brazilian driver has been facing a “Sofia choice” recently. Those who supply alcohol and gasoline realize that the reality of production and the collection of taxes on fuels are making tariffs increasingly impractical. And those looking for an electric car are faced with high prices for purchasing the vehicle.

In this scenario, what can Brazil do to accelerate the migration to the electric car? After all, even though 2020 was the best year of sales in the historical series started by the Brazilian Electric Vehicle Association (ABVE) in 2012, the electric fleet corresponds to only 1% of the total vehicle market in the country.

A national policy to encourage electric models is essential, as is the case with states like Paraná

First, a national policy to encourage electric models is essential, as is the case with states like Paraná, with exemption from collection of Motor Vehicle Tax (IPVA). To this end, the Bill of Law 3174/20, which provides for tax cuts, exchange of the federal government fleet and creation of priority credit lines for the production of electric vehicles in the country, has been under way in the Federal Chamber since October.

According to the proposal, electric vehicles will have total exemption from the Tax on Industrialized Products (IPI). Hybrid models (with electric and conventional propulsion) will have a 50% reduction in tax.

Moving forward on this important tax front, it is necessary to unite the associations and entities that represent both the electric fleet and the renewable energy fleet. In addition to ABVE, we have seen the growth in the performance of the Brazilian Association of Distributed Generation (ABGD), which since 2015 has worked to include different sectors of society in distributed generation, incorporating the concepts of sustainability, financial return, legal security, energy efficiency and expenditure predictability in relation to energy generation and consumption.

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We also saw, in 2020, the creation of the Brazilian Association of Waste Energy and Sanitation (ABERS), which brings together companies and people interested in contributing to the resolution of the serious ecological problem that the combustion engine represents while transforming the problem in revenues, in a sustainable way, generating energy and other by-products.

Advantages and electrification

As we discussed in previous articles here at TecMundo, the economic and sustainable advantage of the electric car compared to the conventional one is undeniable. If combined with distributed generation of solar energy, or even electroparts with this technology, the savings are even greater. It all depends on a gradual cultural change, especially when users discover that the electric model generates much less maintenance, engine, parts and overhaul expenses.

In addition, companies in the United States have expanded the adaptation of electric motors in traditional vehicles, with a technology that does not require major investments and can be implemented in Brazil.

Electrifying used cars can add value to classic models and extend their useful life, from the Beetle to Tucson.

In November, Renault announced that it will transform the car plant in Flins, France, into a recycling and research center that will target a negative CO2 balance by 2030. The Renault Zoe electric car is currently being produced there, model that continues on the production line until 2024, when the factory conversion is 100% complete. In addition, the Renault Group launched in 2020 Elexent, a new company to facilitate all recharging infrastructure projects for fleets of rechargeable electric and hybrid vehicles.

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