Market Trends of south america automotive led lighting Industry
Increasing EV sales to drive the LED market
- The total automobile vehicle production in South America was 5.12 million units in 2022, and it was expected to reach 5.43 million units in 2023. The pandemic and the lack of micro components have had a significant impact on the automotive sector in Latin America. Due to the COVID-19 pandemic, leading two auto producers in Latin America, Mexico, and Brazil had an astounding 99% drop in April, producing just 5,569 vehicles in total. Only 27,889 vehicles were sent from Mexico in April, which is more reliant on exports to the United States than any other country. Brazil is more concerned with its own local market. However, it exports a lot to Argentina. Exports decreased by 77%. The demand for LED lighting in the automotive business was impacted by the decline in auto production.
- South American automakers include Ford Motor Company, General Motors Company, Honda, BMW, Fiat, Chevrolet, and Peugeot. In Latin America, the number of EVs is increasing. For instance, premium car buyers in Latin America are driving an increase in the sales of electric vehicles. Nearly 25,000 EVs were sold in the area in 2021, more than double the amount sold in 2020. From Mexico to Chile, EV sales made up 0.7% of all automobile sales in 2021, with regional variations. Brazil sold the most units (13,000), and Costa Rica had the highest percentage (2.7% of all vehicles sold had a plug). Therefore, it is anticipated that the need for LED lighting in the automobile industry will expand as more people adopt EVs.
Understand The Key Trends Shaping This Market
Download PDF
The LED market is driven by government initiatives propelling EV sales in the region
- The South American EV market is predicted to rise significantly. In the first half of 2022, 9 countries in the region saw electric and hybrid vehicle sales of more than 67,000 vehicles. In the same period, sales percentage increased by 37.7% in 8 Latin American countries. Brazil accounts for well over half the entire South American vehicle market. In 2022, the Brazilian market saw 917,942 vehicle sales, of which 3,843 were BEVs (0.4%) and 19,764 were hybrids, including both HEVs and PHEVs.
- The region is driven by a combination of factors that include government incentive programs, rising prices for conventional fuels, and a wider range of available EV models. Also, EV sales in South America have been boosted by an expansion of charging infrastructure and increased demand for low-emission vans and small trucks. In February 2022, Enel X SRL, which provides electrified and digitalized urban infrastructure ecosystem and energy efficiency services, opened the first "EV Service Station" in Latin America, located in Chile, to support any vehicle that uses electricity as its primary energy source.
- The Chilean government is setting the standard for EV development regulations. Chile's government stated in 2021 that all vehicles sold in Chile after 2035 will be electric. In November 2022, BYD signed a statement of intent with the municipal government of Camacari in the Brazilian state of Bahia to establish a manufacturing plant for electric vehicles and raw battery materials. Two of its production lines will be operational by October 2024, and the other line will go live in January 2025. Thus, the above instances lead to the development and production of new power stations because of the growing demand for EVs, which boosts the demand for automotive LEDs in the region.
Understand The Key Trends Shaping This Market
Download PDF
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Automobile production to boost the LED lighting market
- The LED market is driven by tax exemption on EVs to promote EV registration in the region
- Government programs to support the growth of LED lighting in the region
- Government investments, tender launches, and construction of highways to drive the growth of the LED market
- An increase in commercial vehicle production and incorporation of charging stations corresponds to the growth of LED lights
- Automobile manufacturers increased commercial vehicle sales by 2% in 2021, corresponding to an increase in the growth of the LED market
- Increasing population and affordable housing plans in the region to drive the growth of the LED lighting market
- Government initiatives to promote energy-efficient LED lights and ban conventional bulbs in the region driving the market
