Electric car prices fell 10% in three years, but are rising again

The average price of 100% electric cars for sale in Brazil fell by an average of 10% in just over three years. In the same period, hybrids became 8% more expensive. Meanwhile, the prices of combustion cars (gasoline, flex, diesel) shot up 31%.

The data refers to the period between January 2021 and February 2024. They appear in the 5th AutoAcrefi Report, carried out by the National Association of Credit, Financing and Investment Institutions, in partnership with Cox Automotive.

Despite this lower price of electric vehicles in the long term, as a result of the arrival of more affordable models and increased competition, the average price rose again – and strongly – at the beginning of the year.

From January to February, electric cars became almost 20% more expensive, according to the same survey. There are two main reasons: the return of Import Tax, after years of exemption, and the arrival of luxury launches, which pushed up the average price.

As determined by the government of Luiz Inácio Lula da Silva (PT), taxes on hybrids and electric vehicles will gradually rise depending on the model, reaching 35% in July 2026 – which is the tax charged on combustion-powered imports. In the first month of this year, the tram tax went from 0% to 10%. That for the plug-in hybrid rose to 12% and for the mild hybrid, to 15%.

“We started 2024 with an expectation of rising prices for hybrids and electric vehicles due to the return of Import Tax collection. The arrival of luxury electric cars on the Brazilian market contributed to this trend, directly impacting the average price of new electric vehicles”, said Filipe Pena, executive director of Acrefi, in a statement.

At the beginning of 2021, electric cars cost R$518,800, the simple average price of all vehicles on sale in the country, according to the survey. In January of this year, the average price was below R$400 thousand, but, after an increase of 19.7%, it rose to R$466.7 thousand in February. As a result, 100% electric vehicles once again had a higher average price than hybrids, after a few months below.

Hybrids, which in January 2021 cost an average of R$389,800, increased to R$421,700 in February 2024, according to the research. Combustion cars, in turn, rose from R$206,200 to R$270,900 in the same period.

Despite the price increase noted at the beginning of the year, the director of Acrefi notes that prospects have improved for those who will finance the purchase, due to the relationship between the basic interest rate (Selic).

“In addition, also the new Legal Framework for Guarantees, sanctioned in October 2023, which establishes the repossession of goods extrajudicially when the consumer is in default. This process is faster and more efficient, improving guarantees and boosting the credit market “, says Felipe Pena.