Brazil, a 1.9m two-wheeler market, is at the cusp of going electric in a big way. Last week, we analysed why Brazil could soon be a developing hotspot in electric mobility.

Brazil: The Big Market is About to Turn
Even with 1.9m two-wheeler sales in 2024 and a grid that is 90% green, Brazil has shied away from electric. Till now, that is. Things may be changing as major funds chase decarbonisation and startups sprout. We catch the green shoots and explore the country in a two-part series.
Insight EVDeepesh Rathore

While the current two-wheeler market has only a 0.5% share of electric vehicles, electric motorcycles have a huge potential to be deployed in the large delivery market. Highly populated cities like São Paulo and Rio de Janeiro may develop into prime markets if electric vehicle manufacturers price the products competitively.

In this issue, we answer these questions with YvY Capital:

1. With respect to Brazil and its flex-fuel strategy, do EVs have a TCO advantage?
2. What motorcycles are servicing the delivery market? Are these the 150cc motorcycles that are popular in Brazil?
3. How is the Brazilian electricity supply condition? Is the grid green?
4. If delivery riders are the primary target, would it make sense for someone to enter this market with swappable batteries and set up a network in the major cities?
5. Where does Brazil stand today in terms of electric mobility?
6. Are electric motorcycles mostly imported, or are there any domestic manufacturers in the country?
7. Should anyone planning to sell electric motorcycles in Brazil in such large numbers be looking at setting up local manufacturing?
8. Apart from the delivery riders and commercial usage, do you see a great acceptance for electric motorcycles among general customers?

About YvY's Investment Philosophy:

1. What is YvY's investment philosophy (when it comes to mobility/EV tech)?
2. How big is the typical investment size?
3. Do you look only at Brazil, or are you also open to more global players as long as they deploy in Brazil?
4. What should an EV-tech startup do to get on your radar?
5. What is the most important factor for you when you consider investing?
6. How long does the entire process take at YvY, from first contact to funds transfer?
7. Does YvY invest at the idea stage, or do you wait for some traction in the business?
8. How do you evaluate a team? What are you looking for?
9. Is a technology edge better than management quality?
10. Is Brazil at the cusp of a revolution in electric mobility? Do you see a mass movement to E2Ws from ICE?

It helps that the country's grid is very clean, with a 90% share of renewables.

That may be a challenge now with little or no localisation for electric motorcycles. The ecosystem needs to change. São Paulo-based fund YvY Capital recognises that and is willing to deploy its funds to build the ecosystem.

Deepesh Rathore: Considering Brazil and its flex-fuel strategy, do EVs have any TCO advantage?

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