Latin America Electric Bus Market Report and Forecast 2025-2034

The Latin America electric bus market size is assessed to grow at a CAGR of 14.60% between 2025 and 2034. The market is being driven by rapid urbanisation and high pollution levels in urban areas in the region.

Key Trends in the Market

Electric buses refer to buses that are buses that are powered by electric buses. Such buses offer enhanced energy efficiency, facilitate regenerative braking, lower maintenance and operational expenditures, and ease of battery recharging. With countries across the world adopting electric mobility, specifically through electric buses, the adoption of electric buses is growing.

• The Latin America electric bus market demand is being supported by rapid urbanisation, an increase in population, growing environmental concerns, and rising attempts by governments to make public transportation attractive and sustainable. Moreover, organisations like the United Nations Environment Programme are also developing various programmes to reduce air pollution and greenhouse gas emissions through electric mobility solutions such as e-buses in various Latin American cities.
• High pollution levels in cities like Santiago, Bogota, and Lima, among others, and the rising prevalence of diseases like cancer, respiratory diseases, and premature deaths are propelling the Latin America electric bus market growth. E-buses boast zero tailpipe emissions, noise reduction, lower greenhouse gas emissions, and improved air quality in urban areas.
• Increasing investments in charging infrastructure by leading companies are also aiding the market for electric buses in Latin America. For instance, in August 2023, Blink Charging Co. announced the expansion of its EV charging footprints in Latin America amid the growing trend of electrification in the region.
• The development of autonomous electric bus systems is also anticipated to bolster the Latin America electric bus market expansion in the forecast period. Such systems can revolutionise public transportation, provide cost savings for transit operators, improve road safety, and prevent accidents.

Market Segmentation

The EMR’s report titled “Latin America Electric Bus Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Propulsion:

• Battery Electric Vehicle
• Plug-in Hybrid Electric Vehicle
• Fuel Cell Electric Vehicle

Market Breakup by Length:

• Less Than 9 Meters
• 9-14 Meters
• Above 14 Meters

Market Breakup by Power Output:

• Up to 250kW
• Above 250kW

Market Breakup by Battery Capacity:

• Up to 400 kWh
• Above 400 kWh

Market Breakup by Application:

• Intercity
• Intracity

Market Breakup by Ownership:

• Private
• Government

Market Breakup by Region:

• Brazil
• Mexico
• Argentina
• Chile
• Others

Market Share by Propulsion

As per the Latin America electric bus market analysis, battery electric buses represent a significant portion of the market share. Such buses are designed with regenerative braking, have reduced energy consumption, boast zero tailpipe emissions, and offer a range of 275 – 300 miles on a single charge. These buses also have more fuel efficiency than their conventional counterparts operated using fossil fuels.

In October 2023, Volvo Buses introduced Volvo BZL Electric, its 100% electric city bus that is equipped with 94kWh batteries and powered by a 200kW electric motor in Latin America. The buses are slated to run on routes in routes in Curitiba and Brazil and are aimed at driving electrification in the region.

Market Share by Ownership

Governments hold a substantial portion of the Latin America electric bus market share as they are actively attempting to transform the public transportation sector and meet global climate goals by replacing diesel fleets with e-buses. The increasing focus by governments to enhance the quality of urban transportation, improve air quality, and reduce pollution in cities are also contributing to the segment’s growth.

It is anticipated that around 25,000 electric buses will be on roads by the year 2030 and 55,000 by 2050 in the region. Mexico, Chile, Brazil, and Colombia are expected to collectively account for 82% of the global share of electric buses in the forecast period.

Competitive Landscape

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the global Latin America electric bus market, covering their competitive landscape and latest developments like mergers, acquisitions, investments, and expansion plans.

Mercedes Benz Group AG

Mercedes Benz Group AG is a multinational automotive corporation and car manufacturer. It has been manufacturing eCitaro drive city buses with the absolute battery since 2018. From 2023, the vehicle has been offered with a hydrogen-based fuel cell.

AB Volvo

AB Volvo was founded in 1927 in Sweden and manufactures electric buses, including Volvo BZL electric and Volvo 7900 electric. The first demonstration of 100% electricity buses is being operated in Latin America by Volvo buses.

Xiamen King Long United Automotive Industry Co., Ltd.

Xiamen King Long United Automotive Industry Co., Ltd. was established in 1988 and emphasises on the manufacture, sales, R&D, and services of large, medium-sized buses and vans. Its three manufacturing bases, include Xiamen Large & Medium-Sized Bus Base, Xiamen Van Manufacturing Base, and Shaoxing City Bus Base, among others.

Other Latin America electric bus market players include Hyundai Motor Co., BYD Company Limited, Yutong Bus Co., Ltd., Higer Bus Company Limited, Eletra Industrial LTDA, and IVECO S.p.A, among others.