INDUSTRY NEWS

Electric Buses Mounting in Latin America, headed by Chile as it aims 100 percent electrification by 2040

Published Date | 2019 May 30

Latin American aims to have a fully electric public transport system by 2040, adding 200 new electric buses to its fleet, with an expected to add 500 more by 2020 which will fuel the electric commercial vehicle market.

Global:  Latin American countries are poised to take advantage of innovations in urban transportation. Numbers of countries are ramping up their adoption of electric buses, with Chile leading the way. The country has recently added 200 electric buses to its fleet, as it plans to have a transport system that was fully electric by 2040. Chile currently has the largest fleet of electric buses in Latin America and the Caribbean — the 200 new e-buses launched in its capital city of Santiago, one of the most polluted cities in Latin America, earlier this year. Santiago has previously announced plans to make 80% of its buses electric by 2022, and the city is expected to add 500 more electric buses by 2020 in its next phase. To decisively confront climate change, electromobility is critical. Chile is leaping a cleaner, more efficient and sustainable transport system. The country is making a rigorous effort to reduce its emissions and air pollution moving forward with the adoption of electric buses. The country will host the UN Climate Change Conference COP25 in December.

According to BlueWeave Consulting, The move to electrify vehicles has gathered momentum the world over.  Increasing global concerns regarding the negative effect of climate change along with alarming pollution levels have created a significant demand for electric vehicles. The rising public awareness of air quality and the burden of disease caused by air pollution is an essential step in reducing air pollution and improving public health which is accelerating market demand for electric vehicles. Moreover, technological advancements in electric vehicles and infrastructure with proactive government initiatives are expected to unfold various opportunities for the growth of the electric vehicle and infrastructure market in the future.

As the global temperatures are increasing at an alarming rate, governments and industry around the world have pledged to reduce greenhouse gas emissions. Need for fuel-efficient, emission-free vehicles and the increasing demand for the electric commercial vehicle such as electric truck in the logistics industry to minimize the additional liability of fuel expenses. Pollution causes 7% of the medical expenses among middle-income group people across the world. According to World Bank air pollution cost in India was approximately 8% of its GDP or USD 560 billion in 2013.  Hence, raising public awareness of air quality and the burden of disease caused by air pollution is an essential step in reducing air pollution and improving public health which is accelerating market demand for electric commercial vehicles market.

According to the recently published report by BlueWeave Consulting on “Global Electric Commercial Vehicles Market by Propulsion type (BEV, HEV, PHEV, FCEV), by Vehicle type (Bus, Truck, Van, Others), by Component (Motor, Battery, Others) – Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2014-2024,” the Global Electric Commercial Vehicles market is projected to grow at a CAGR over 13.0% during the forecast period in terms of value. The market is expected to reach over USD149, 316 Mn by 2024, supported by government subsidies and tax rebates for commercial electric vehicles. Need for fuel-efficient and emission-free vehicles and the increasing demand for the electric commercial vehicle such as an electric truck in the logistics industry to minimize the additional liability of fuel expenses. Innovations in EV battery capacity, which will enable the electric commercial vehicle to carry heavy loads over a longer range, can create new revenue generation opportunities.

According to the recently published report by BlueWeave Consulting on “Global Electric Vehicle Battery Market, by Battery Type (Lithium-ion Battery, Lead Acid Battery, Nickel Metal Hydride Battery, and Others), by Vehicle Technology (BEV, PHEV and HEV), by Vehicle Type (Passenger Car, Commercial Car and Two Wheeler), by Region (North America,Asia Pacific, Europe, Latin America, and Middle East & Africa); Size and Forecast, 2014-2025,” Global Electric Vehicle Battery market is expected to grow with a CAGR over 19% during the forecast period 2018-2025, owing to increasing demand for environment-friendly vehicles. Diseases caused by air and water pollution are epidemic among minorities. Environmental pollution causes more than three times of death than malaria, tuberculosis, and AIDs, countries such as India and China records the maximum death caused by environmental pollution. Pollution causes 7% of the medical expenses among middle-income group people across the world. According to World Bank air pollution cost in India was approximately 8% of its GDP or USD 560 billion in 2013.  Hence, raising public awareness of air quality and the burden of disease caused by air pollution is an essential step in reducing air pollution and improving public health which is accelerating market demand for the electric vehicles battery market.