South America Automotive e-axle Market: Industry Analysis and Forecast (2024-2030)

South America Automotive e-axle Market Overview:

Automotive e-axle refers to a compact electric drive solution, which combines the transmission, electric motor, and power electronics into a single unit. The single casing allows for simple integration of several components, a single cooling system for all parts, streamlined packaging, and improved efficiency.

 

Further, the Automotive e-axle market is segmented by Electric Vehicle Type, Vehicle Type, Drive Type, and Geography. Based on Vehicle Type, the Automobile e-axle Market is segmented under battery electric vehicles (BEV) and plugin hybrid electric vehicles (PHEV). Based on the Vehicle type, the Automobile e-axle market is segmented under Passenger cars and commercial vehicles. Based on the Drive type, the Automobile e-axle market is segmented under all-wheel drive (AWD), Front-wheel drive (FWD), and Rear-wheel drive (RWD). By geography, the market covers the major countries in South America, i.e., Brazil, Columbia, Venezuela, Chile, and the Rest of South America. For each segment, the market sizing and forecasts have been done on the basis of value (in USD Million).

 

 

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South America Automotive e-axle Market Dynamics:

South America includes Brazil and the Rest of South and Central America. Thanks to the rapid urbanization and the rising use of automobiles, the automotive e-axle market is expected to have a high demand in South America. The current expansion of the South America region's automotive manufacturing sector is credited to many OEMs and automakers. Brazil is the most important potentially large domestic market that has low vehicle ownership and a growing economy.

 

Still, as time passes, the region is witnessing rising automotive production supporting the growth of the automotive e-Axle market in the region. For instance, as per OICA, total vehicle/car production in Brazil increased by 2.2% in 2019. Additionally, the national regulatory bodies of various countries in the region are encouraging safer with more advanced vehicles. For occurrence, the Brazilian government has verbalized some approving trade investment policies for promoting private investments in various industries, including automotive.

 

The Brazilian government has also made provisions to give exemption to investors from custom duties and other taxes on the purchase of specific infrastructure and capital goods. Such government initiatives to support the automotive sector's growth would strengthen the automotive manufacturing industry in the region, which is expected to support the Automotive e-axle Market's development in the coming years. Also, the rising focus on new product development is creating upcoming opportunities for the growth of the Automotive e-axle market through the forecast period.

 

There is a high cost associated with electric vehicles, which is one of the major restraining factors for the growth of the market. Also, there are some other factors, such as Making electric cars creates more emissions, they are only as green as their power sources, and You can’t drive as far in an electric car. These are limiting the growth of the automotive e-axle market through the forecast period.

 

South America Automotive e-axle Market Segment Analysis:

By Drive Type, the Automobile e-axle Market a segmented into All wheel drive (AWD), Front-wheel-drive (FWD), and Rear-wheel drive (RWD). The front-wheel-drive (FWD) has dominated the largest Market share accounting for 41% in 2023. As these can be used without a long driveshaft, rear axle (or axles), or rear differential, the car carries less mass; this, coupled with reduced driveline loss, aids efficiency. Also, front-drive construction puts the heaviest components of the machine over the tires driving it, increasing traction on slippery surfaces. These factors are increasing the demand for the Front-wheel-drive (FWD).

 

 

COVID-19 Impact on South America Automotive e-axle Market:

 

The country with the most COVID-19 instances was Brazil, which was followed by Peru, Chile, Colombia, Ecuador, and Argentina, among others. Governments in SAM have adopted a variety of measures to protect their population and stem the spread of COVID-19; as a result, lockdowns have been instituted to promote social separation. According to the Brazilian Automobile Manufacturers Association, car sales are expected to recover to pre-COVID levels by 2025. In addition, several automakers in the country have seen a significant drop in production capacity.

 

According to MMR analysis, the manufacturers' organization, car output in 2020 has drop by 45 percent compared to 2019 in South America region. Exports of automobiles are predicted to drop by 53% over the same time period. Recently, Ford Motors has announced to close its three production facilities and stop manufacturing operations in the South America region. This decreased the demand for the Automotive e-axle Market during the COVID-19 pandemic.

 

The objective of the report is to present a comprehensive analysis of the South America Automotive e-axle Market to the stakeholders in the industry. The report provides trends that are most dominant in the South America Automotive e-axle Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the South America Automotive e-axle Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

 

The qualitative and quantitative data provided in the South America Automotive e-axle Market report is to help understand which market segments and regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the South America Automotive e-axle Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the South America Automotive e-axle Market.

 

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals exist, who they are, and how their product quality is in the South America Automotive e-axle Market. The report also analyses if the South America Automotive e-axle Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly, and if the market is dominated by a few players, etc.

 

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the South America Automotive e-axle Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the South America Automotive e-axle Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the South America Automotive e-axle Market is aided by legal factors.

 

South America Automotive e-axle Market Scope:

South America Automotive e-axle Market
Market Size in 2023	USD 487.44 Mn
Market Size in 2030	USD 542.85 Mn
CAGR (2024-2030)	1.55%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	by Vehicle Type Passenger Car Commercial Vehicle
	by Drive Front-Wheel Drive Rear Wheel Drive All-wheel Drive
	By Electric vehicle Type Battery Plugin Hybrid Electric Vehicle (PHEV) (BEV) Plugin Hybrid Electric Vehicle (PHEV)
Country Scope	Brazil  Argentina  Rest of South America

 

South America Automotive e-axle Market Key Players:  

• Marelli Electric Powertrain Strasbourg (Rue de La Rochelle, France)
• Nidec (Kyoto, Kyoto, Japan)

• Allison transmission (Indianapolis, Indiana, United States)
• Dana Incorporated (Maumee, Ohio, United States)
• Bosch Mobility Solutions (Gerlingen, Germany)