Brazil boosts electric vehicle market with record sales in Rio Grande do Sul and plans IPVA tax exemption

Electric vehicle sales in Rio Grande do Sul surged in the first half of 2023, with 13,560 electrified vehicles registered – a 129.5% increase over the previous year. Fully electric models outperformed hybrids, and the BYD Dolphin Mini secured second place among cars, while the Fiat Strada remained the top-selling model overall.

Meanwhile, the state government of Espírito Santo announced a study to grant a full IPVA tax exemption for consumers purchasing their first electric car. Governor Ricardo Ferraço said the proposal aims to cut thousands of reais in annual tax for buyers and encourage the shift to cleaner mobility, though details on duration, vehicle price caps, and eligibility remain under review.

Both developments reflect Brazil’s growing focus on sustainable transport, with incentives and rising consumer demand driving the market forward.