South America Micro Electric Vehicle (EV) Market: Market Analysis, Growth Factors Forecast (2023-2029)

  • South America Micro Electric Vehicle (EV) Market was valued at USD 1239.27 million in 2022 and is estimated to reach a value of USD 3007.03 million in 2029. South America Micro Electric Vehicle (EV) Market size is estimated to grow at a CAGR of 13.5% over the forecast period.

  • Format : PDF | Report ID : SMR_843

South America Micro Electric Vehicle (EV) Market Definition:

Micro Electric Vehicles are the type of micro-mobility that refers to a range of small, lightweight vehicles operating at a speed of more than 15 miles per hour and are considered ideal for commuting more than 10KM range. This actively includes the usage of different types of vehicles such as golf cars, e-bikes for delivery, electric scooter for personal use, and other transport micro vehicles for industries as well as commercial use. Continuous development carried out across the region toward developing smart cities & vehicle infrastructure has created numerous opportunities for the growth of the South America Micro EV market. The presence of different service provider companies followed by their investment & development strategies has attracted numerous small vehicle fleet owners to collaborate toward supporting the concept of the Micro EV Market.


Further, the South America Micro Electric Vehicle (EV) Market is segmented by Vehicle User, Types of Charging, Drive Technology Outlook, and Geography. Based on Vehicle Users, the South America Micro Electric Vehicle (EV) Market is segmented into Passenger Vehicle, Commercial Vehicle, and Industrial Vehicle. Based on the Type of Charging, the South America Micro Electric Vehicle (EV) Market is segmented under the channels of Slow Charging and Fast Charging. Based on the Drive Technology Outlook, the South America Micro Electric Vehicle (EV) Market is segmented under the channels of Lead Acid Battery Technology and Lithium-Ion Battery Technology. By Geography, the market covers the following Regions: Brazil, Argentina, Colombia, and the Rest of South America. For each segment, the market sizing and forecasts have been done based on value (in USD Million).

South America Micro Electric Vehicle (EV) Market

South America Micro Electric Vehicle (EV) Market Dynamics:

Increase in Adoption of Electric Vehicles and Latest Development Promotes Growth of the Market- Over the past few years, Electric Vehicles have witnessed considerable growth of 16.5% in the Region and also promoted the need for the micro EV to meet the future energy requirement in various industries. The need to attain sustainable transportation plays a significant role in driving electric vehicle demand. The micro EVs market is coming up as an integral part of the automotive industry and represents pathways towards achieving energy efficiency along with reduced emission of pollutants and other greenhouse gasses.


According to the reports of Brazil's Automotive Industries Analysis, there have been numerous EV-related disruptions in recent years, such as e-taxi and e-bus pilot programs, fleet acquisition targets by logistics and utility companies, local design and manufacturing of fully electric microcars in Mexico, Brazil, and Argentina, and even some BEV car sharing and car rental services. "OEMs will seek to maximize these prospects through partnerships and convergences with utility companies, gas stations, mobility firms, civil associations, and EV charger manufacturers."


Various Industries Shifting Toward Micro EVs are the Opportunities of Growth to the Market- The industry's slow and steady shift towards Micro EVs about environmental issues, tax benefits, rebates, and subsidies are the factors driving the market. Micro electric vehicles are constantly engaging with government authorities to define the regulatory framework and transform the constantly aging operation vehicles over the coming years. Local governments have incorporated into their agenda the notion of micro and electromobility utility companies; amongst other players are developing charging infrastructure projects across the Region, and the number of micro electric vehicles models are made available on the market as per the requirement by various industries like commercial use, industrial use, and private use is gradually expanding across multiple country of South America region led by industries demand of micro EVs.


For instance, According to the OEC data, merely 12.4 thousand Micro HEVs and 1.7 thousand Micro BEVs + PHEVs commercialized in 2020, the South American market will grow to more than 94.7 thousand Micro HEVs, 2.3 thousand Micro PHEVs, and 3.3 thousand Micro BEVs in 2027.


Plug-In Micro Electric Vehicles Take the Road in South America is the Market Trend- In 2019, South America bought 6.3 million cars, including 3,555 electric cars or hybrids and half of them were micro electric cars. The Region is likely to triple car ownership by 2030, and that growing market is an opportunity for the Region's policymakers to expand EV ownership and production. Indeed, several governments have stepped up incentives and made policy changes to popularize Micro Electric Vehicles Market.


The success ration in Mexico, the major micro electric auto producer, the country accounted for half of the Region's growth in micro EV sales in 2019. This was because of the government's incentive programs to persuade consumers to give EVs a try. In Smoggy city, officials exempted micro electric vehicles from limits on permitting driving days and decreased electricity prices for electric vehicles charging.


South American governments have also boosted EV adoption by adding EVs to their public transit fleets. This is fertile ground, as South America has the highest per capita use of e-buses in the world. In 2019, for example, Santiago purchased 80 electric buses to combat smog. This measure was popular, and other cities, including Medellin and Buenos Aires, have also adopted micro EVs and EVs for their fleets. Most recently, Montevideo purchased 20 electric buses.


Restraining and Challenging Factors for the Micro Electric Vehicle (EV) Market in the Region:

The slow uptake of micro electric vehicles across South America is due to several restraining factors s which look unlikely to change soon. Whilst the road to success may be arduous, several factors may be tweaked to ease the process.


In South America, many obstacles are preventing the widespread adoption of micro electric vehicles. In comparison to Europe, Asia, and North America, Latin America's level of infrastructure and economic diversity are holding the Region back, with South America being one of the unequal regions. The disparities between city and urban population, elite, and others also limit the location of the customer base for extensive uptake.


South America suffers from other concerns like a chicken-and-egg problem, and not having many electric vehicles available depends on the key players of other regions, and the public charging infrastructure is very limited, which in turn, the public charging infrastructure is scarce because there are too few EVs.


South America Micro Electric Vehicle (EV) Market Segment Analysis:

By Vehicle User, Passenger vehicles segment is expected to be the fastest-growing segment with an annual growth rate of 17%. The factors attributing to the growth are the major key players associated with the manufacturing of electric buses and other micro passenger vehicles. For instance, Bus manufacturers like BYD are entering the South American Micro Electric Vehicle Market by overcoming the challenges of replacing diesel buses with battery-operated ones. BYD autos have received orders from Argentina to become a domestic auto manufacturer and will contribute to revamping the bus fleets with 90% electric buses.


By Type of Charging, Slow charging is considered the major segment in the market of the South American Region, witnessing a growth of 6.5% over the forecasted period; the dominating factors for this segment is the properties and facility or the suitability is more contributing by the consumers, and it is flexible for the consumers who act as a major factor for the growth of this segment. The other factors influencing the growth are it is the most preferred and most independent source of charging the EV batteries. It is also the cheapest way of charging the battery, it uses must be popularised in workplaces to enable faster adoption of micro electric vehicles.

South America Micro Electric Vehicle (EV) Market Regional Insights:

Colombia is witnessing to have the highest growth rate because the factors like air pollution in Colombia are worsening at exponential rates. Cities like Bogota and Medellin face high risks in terms of health and air quality. The numerous studies by various national universities, researchers found that diesel vehicles are the primary source of pollution within this country. As a result, the government is taking incentives and subsidies to achieve an ambitious target of 600,000 EVs and a half for the micro electric vehicles across the various industries on road by 2030 to combat the environmental issues. The tax benefits serve as the primary and biggest incentives currently.


For instance, Colombia has had a National Electromobility Strategy, which includes the goal of electrifying 30% of the private fleet by 2027. The government expects its public, private, and commercial fleet of EVs to reach 4.5 million over the forecasted period. This would avoid the emission of 9 million tons of CO2 per year, according to government estimates.


Other countries like Brazil and Argentina are also contributing to the growth of the micro EV market; Brazil is concentrating on hybrid vehicles that run on ethanol and electricity from batteries. However, because the United States and Europe are already working toward full electrification of transportation and creating low-emission zones, this policy may put the country further behind. Brazil has begun to invest a lot in hybrid vehicles, and now they are starting to move towards the manufacturing of micro electric vehicles.


Argentina currently lacks national legislation on electric mobility, but that is set to change this year as President Alberto Fernandez proposed a plan to Congress that provides total tax savings for EV purchases. In comparison to its neighbors, the country has just approximately 100 electric cars and a few electric buses.


South America Micro Electric Vehicle (EV) Market Key Players Insights:

The market is characterized by the existence of several well-known firms. These companies control a large portion of the market, have a wide product portfolio, and have a global presence. In addition, the market comprises small to mid-sized competitors that sell a limited variety of items, some of which are self-publishing organizations.


The market's major companies have a significant impact because most of them have extensive global networks through which they can reach their massive client bases. To drive revenue growth and strengthen their positions in the global market, key players in the market, particularly in North America and Europe, are focusing on strategic initiatives such as acquisitions, new collection launches, and partnerships.


The objective of the report is to present a comprehensive analysis of the South America Micro Electric Vehicle (EV) Market to the stakeholders in the industry. The report provides trends that are most dominant in the South America Micro Electric Vehicle (EV) 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 Micro Electric Vehicle (EV) 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 Micro Electric Vehicle (EV) 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 Micro Electric Vehicle (EV) 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 Micro Electric Vehicle (EV) Market.

Report photo


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 Micro Electric Vehicle (EV) Market. The report also analyses if the South America Micro Electric Vehicle (EV) 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 Micro Electric Vehicle (EV) Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the South America Micro Electric Vehicle (EV) Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the South America Micro Electric Vehicle (EV) Market is aided by legal factors.


South America Micro Electric Vehicle (EV) Market Scope:

South America Micro Electric Vehicle (EV) Market Scope

Market Size in 2022

USD 1239.27 Mn.

Market Size in 2029

USD 3007.03 Mn.

CAGR (2023-2029)


Historic Data


Base Year


Forecast Period


Segment Scope

By Vehicle User

  • Passenger Vehicles
  • Commercial Vehicles
  • Industrial Vehicles

By Type of Charging

  • Slow Charging
  • Fast Charging

By Drive Technology Outlook

  • Lead Acid Battery Technology
  • Lithium-Ion Battery Technology

Country Scope

 Rest of South America


South America Micro Electric Vehicle (EV) Market Key Players: 

Frequently Asked Questions

The segments covered in the South America Micro Electric Vehicle (EV) Market report are based on Vehicle User, Type of Charging, and Drive Technology Outlook.

  1. Scope of the Report
  2. Research Methodology
    • Research Process
    • South America Micro Electric Vehicle (EV) Market: Target Audience
    • South America Micro Electric Vehicle (EV) Market: Primary Research (As per Client Requirement)
    • South America Micro Electric Vehicle (EV) Market: Secondary Research
  3. Executive Summary
  4. Competitive Landscape
    • Stellar Competition matrix
      • South America Stellar Competition Matrix
    • Key Players Benchmarking: - by Product, Pricing, Investments, Expansion Plans, Physical Presence, and Presence in the Market.
    • Mergers and Acquisitions in Industry: - M&A by Region, Value, and Strategic Intent
    • Market Dynamics
    • Market Drivers
    • Market Restraints
    • Market Opportunities
    • Market Challenges
    • PESTLE Analysis
    • PORTERS Five Force Analysis
    • Value Chain Analysis
  5. South America Micro Electric Vehicle (EV) Market Segmentation
    • South America Micro Electric Vehicle (EV) Market, by Vehicle User (2022-2029)
      • Passenger Vehicle
      • Commercial Vehicle
      • Industrial Vehicle
    • South America Micro Electric Vehicle (EV) Market, by Type of Charging (2022-2029)
      • Slow Charging
      • Fast Charging
    • South America Micro Electric Vehicle (EV) Market, by Drive Technology Outlook (2022-2029)
      • Lead Acid Battery Technology
      • Lithium-Ion Battery Technology
    • South America Micro Electric Vehicle (EV) Market, by Country (2022-2029)
      • Brazil
      • Colombia
      • Argentina
      • Chile
      • Rest of South America
  6. Company Profiles
    • Key Players
      • Hyundai Motor Company (South Korea)
        • Company Overview
        • Product Portfolio
        • Financial Overview
        • Business Strategy
        • Key Developments
      • KIA Motors Corporation (South Korea)
      • BYD Auto (China)
      • BMW Group (Russia)
      • Groupe Renault (France)
      • Volkswagen AG (Germany)
      • Nissan Group (Japan)
      • Textron (US)
      • CLUB CAR (US)
      • Yamaha Golf-Car Company (US)
  7. Key Findings
  8. Recommendations

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