March 14, 2024
Brazil electric two-wheeler industry status and trend analysis 2025
Brazil, as the world’s fourth largest motorcycle market, is undergoing a profound transformation in its two-wheeler industry. Although traditional fuel motorcycles still dominate, the rising momentum of the electric two-wheeler market cannot be ignored. In 2024, Brazil’s motorcycle production exceeded 1.748 million units, and sales increased by 18.6% year-on-year to 1.876 million units, showing its huge market potential.
However, while exports fell by 5.9%, the domestic market, driven by ethanol gasoline policies, demand for small-displacement models and the popularity of flexible fuel vehicles, brought structural opportunities to the electric two-wheeler and its accessories market.
This article will deeply analyze the current situation, opportunities, challenges and future development trends of Brazil’s electric two-wheeler market, aiming to provide detailed market intelligence for global electric motorcycle companies and help companies formulate effective market entry strategies (explore the top 10 electric motorcycle manufacturers in the world).
Table of Contents
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Market overview
Steady growth in the fuel vehicle market
In 2024, the Brazilian motorcycle market showed a booming scene. Both production and sales have increased, and small-displacement models (≤160cc) have occupied more than 70% of the market share (explore the top 10 small displacement motorcycles in the world), meeting the daily commuting needs of the public.
At the same time, the demand for mid- and high-end models has also shown an upward trend, reflecting the increasing demand for motorcycle performance and comfort among consumers.
However, the ethanol gasoline policy has inhibited the rapid development of electric motorcycles to a certain extent, and flexible fuel vehicles have dominated, making the market share of pure electric motorcycles only 2.5% in 2024.
The electric two-wheeled vehicle market has great potential
Although the current market share of electric motorcycles is low, its growth potential cannot be underestimated. It is expected that by 2025, the sales volume of electric motorcycles will double to 50,000-60,000 units, and the market share will reach 4%-5%. If policy support is strengthened, the market growth rate may even exceed expectations. This is mainly due to the following factors:
- Enhanced environmental awareness: The increasing attention paid by Brazilian society to environmental protection has driven the growth of demand for electric two-wheeled vehicles.
- Technological progress: With the continuous maturity of electric motorcycle technology, performance indicators such as cruising range and charging efficiency have been significantly improved (find the top 10 long range electric motorcycle manufacturers in the world), enhancing the competitiveness of products.
- Policy support: The Brazilian government is gradually increasing its support for electric two-wheelers, and is expected to introduce more preferential policies in the future to stimulate market development.
- Corporate investment: Companies such as food delivery platform iFood (explore the top 10 food delivery platforms in the world) and online car-hailing platform 99 have increased their investment in electric motorcycles, accelerating the development of the market.
Rio de Janeiro: An important market for electric two-wheelers
As one of the economic centers of Brazil, Rio de Janeiro has 1.5 million two-wheelers and is an important market for electric two-wheelers. Its motorcycle density ranks among the top in Brazil because of its complex terrain and high motorcycle commuting efficiency. Annual sales account for about 7%-9% of national sales, second only to Sao Paulo.
Market opportunities: Structural changes bring new growth points
Intelligent upgrade of the accessories market
With the development of the electric two-wheeler market, the accessories market has also ushered in new growth points. Electric adapters (such as lithium battery conversion kits, fast charging equipment), smart safety equipment (such as networked helmets, GPS anti-theft trackers) and high-performance conversion parts (such as ECU tuning, exhaust systems) will become the main drivers of market growth.
Demand surges in the food delivery and online car-hailing industries
Companies such as Brazilian food delivery platform iFood and online car-hailing platform 99 have increased their investment in electric motorcycles, injecting strong momentum into the electric two-wheeled vehicle market. iFood plans to work with YvY Capital to achieve an annual production of 600,000 electric motorcycles by 2035. The 99 online car-hailing platform also plans to increase the number of electric motorcycles to 10,000 by 2025 and set up battery charging and replacement outlets in multiple cities in Brazil (find the top 10 swap charging station companies in the world).
Localized production is the key
Brazilian consumers have great concerns about the sustainability of electric motorcycle brands, especially after-sales service and parts for later maintenance. Brazilian solar panel manufacturer EcoPower has cooperated with Horwin, a Chinese-funded company, to assemble electric motorcycles in Brazil, seeing this market opportunity.
The rental market has great potential
The electric motorcycle rental business also has great development potential in Brazil. Startups such as Vammo provide electric motorcycle rental services in the Greater São Paulo metropolitan area and plan to further expand their scale.
Market challenges: potential risks that cannot be ignored
Tariffs and trade barriers
The Brazilian government plans to restore the import tariff on electric vehicles to 35% in 2026. Although the tariff policy for motorcycle accessories has not yet been clarified, there is uncertainty in the future. In addition, Brazil’s localization incentive policy requires companies to produce locally in order to enjoy tax credits, which is a challenge for overseas companies.
The impact of ethanol gasoline policy
Flexible fuel vehicles in Brazil dominate, and the popularity of ethanol gasoline has to some extent inhibited the rapid development of electric motorcycles. Electric motorcycle companies need to find differentiated competitive advantages to stand out in the market.
Lagging infrastructure construction
The lack of charging infrastructure is an important factor restricting the development of electric motorcycles. Although some companies are actively building charging networks, they still need to increase investment to meet market demand.
Consumer acceptance needs to be improved
Brazilian consumers have a relatively low level of understanding of electric motorcycles, and have doubts about their range, charging convenience, safety performance, etc. Enterprises need to strengthen market promotion to improve consumers’ awareness and acceptance of electric motorcycles.
Market entry strategy recommendations for global electric motorcycle companies
Choose the right partner
Cooperate with local Brazilian dealers, rental companies, food delivery platforms, etc. to quickly enter the market. Cooperate with companies with government background or industry influence to obtain more policy support.
Flexible use of e-commerce channels
Entering e-commerce platforms such as Amazon Brazil and Mercado Livre can expand the sales scope of products. Online marketing activities can be carried out through channels such as social media to attract consumers.
Provide high-quality after-sales service
Establish a complete after-sales service network, provide door-to-door repairs, battery replacement, regular maintenance and other services to improve user satisfaction.
Pay attention to policy changes and market trends
Pay close attention to policy changes of the Brazilian government and adjust market strategies in a timely manner. Pay attention to market trends, understand consumer needs, and continuously improve products and services.
Final thoughts
The Brazilian electric two-wheeler market is in its early stages of development, with both opportunities and challenges. For global electric motorcycle companies, seizing market opportunities and formulating a thorough market entry strategy will help them succeed in the Brazilian market. At the same time, they must fully recognize market challenges and be prepared to respond. I believe that in the near future, the Brazilian electric two-wheeler market will usher in more vigorous development.
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Willow
Willow is a materials engineer with a Master’s degree in Materials Science and Engineering, specializing in lithium-ion battery materials and energy storage technologies.
Her work focuses on EV battery swapping solutions, battery innovation, and new energy industry trends, aiming to translate research insights into practical applications for sustainable transportation.
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