Flexfuel Market

Brazil Flexfuel Market Is Estimated To Witness High Growth Owing To Increasing Production And Sales Of Flex Fuel Vehicles


The Brazil Flexfuel Market is estimated to be valued at US$ 19.83 Bn or billion in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Flex-fuel vehicles or Flexible-fuel vehicles (FFV) are automobile vehicles that run on more than one fuel, usually gasoline blended with either ethanol or methanol fuel. Ethanol is the most common oxygenate additive for gasoline. E85 is the term used for fuel blends of gasoline and ethanol that contain 51%–83% denatured ethanol and 17%–49% gasoline. Flex-fuel vehicles are capable of running efficiently on E85 (85% ethanol, 15% gasoline), E100 (100% pure ethanol), or any combination of gasoline and the alternative fuel, allowing the usage of renewable fuels. The key advantage of FFV is that it drives on locally produced renewable fuel resources and reduces dependency on oil imports.

Market Dynamics:
The Brazil Flexfuel market is witnessing high growth due to increasing production and sales of flex fuel vehicles. Brazil has the largest flex-fuel vehicle fleet in the world. The country’s massive ethanol industry and widespread use of flex-fuel vehicles helped reduce oil imports and lowered CO2 emissions. Government policies and incentives play an important role in encouraging domestic ethanol production and use of flex-fuel vehicles. Rebates on flex-fuel vehicles, tax incentives for ethanol producers, and subsidies for flex-fuel vehicle manufacturing have boosted their adoption in the country. Brazil has the world’s only commercial flex-fuel fleet, with over 30 million flex-fuel vehicles on the road.

SWOT Analysis for Brazil Flexfuel Market

Strength: Brazil Flexfuel Market is supported by government policies which encourage the production and consumption of flex fuel vehicles. Brazil has a well-established flex fuel infrastructure and around 90% of light vehicles sold are flex fuel enabled. There is a large supply of domestically produced ethanol which is the preferred biofuel for flex fuel vehicles in Brazil.

Weakness: High dependency on sugarcane based ethanol leads to fluctuations in prices due to changes in sugarcane cultivation and production. Limited flex fuel models and technology available compared to gasoline vehicles. High initial costs of flex fuel vehicles compared to conventional vehicles.

Opportunity: Growing international demand for low carbon fuels provides an opportunity to export sugarcane ethanol. Advancements in cellulosic ethanol production technologies can reduce price volatility. Widening flex fuel compatible vehicle lineups by automakers boosts flexfuel adoption.

Threats: Slow passenger EV adoption rate in Brazil is a threat. Dependence on one feedstock- sugarcane makes the market vulnerable to climate change impacts. Stringent vehicle emissions regulations in other countries favor battery electric vehicles over flex fuel.

Key Takeaways

Brazil Flexfuel Market Demand is expected to witness high growth, exhibiting a CAGR of 7.2% over the forecast period, due to increasing demand for low emission vehicles. The market size is projected to reach US$ 19.83 billion in 2023.

Key players

Key players operating in the Brazil Flex-fuel Vehicle market are Subaru Corporation, Chery Automobile Co. Ltd., Fiat Chrysler Automobiles, Ford Motor Company, General Motors Company, Honda Motor Co. Ltd., Hyundai Motor Company, Renault SA, BMW AG, Daimler AG, Nissan Motor Co. Ltd., Mazda Motor Corporation, Mitsubishi Motors Corporation, Toyota Motor Corporation, Volkswagen AG, Lifan Industry Group, BYD Auto Co. Ltd., JAC Motors, Changan Automobile Co. Ltd., BAIC Motor Corporation Ltd.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it