Is there room in the competitive automobile market for a Brazilian manufacturer to finally succeed? Lecar, founded by entrepreneur Flávio Assis, believes there is. The company plans to build a flex hybrid car factory in Brazil with production expected to begin in 2026.
This marks the first attempt in decades to rejuvenate Brazil’s national automobile industry. The country has not seen a successful domestic car manufacturer for many years. Gurgel was one of the few that gained notable prominence decades ago but shut its operations down in the 1990s.
Lecar, which intends to compete in a market that is traditionally dominated by global brands, has noted that key to success is that the automotive market is now embracing new horizons, with sustainability and electrification becoming viable paths for a fully Brazilian industry.
However, the company abandoned its initial plans to build a fully electric car due to the poor charging infrastructure across the country.
“We’re shifting from electric to hybrids, keeping an eye on global trends,” Flávio Assis explained. “I’ve been driving my Tesla for three years now. You can’t find available charging spots in shopping malls anymore,” he noted.
The initial investment in Lecar’s first hybrid 459 model is projected to be R$870 million (US$158 million), with the car expected to be priced at R$150,000. The company aims to create 1,500 direct jobs.
Experts cautiously optimistic
The company promises that the Lecar 459 will achieve 30 kilometers per liter of ethanol, a biofuel widely used in Brazil which is made from sugarcane.
“With ethanol, 80% of CO2 emissions from a combustion engine are offset by the fuel’s own cultivation, which is why we’ve prioritized this raw material.”
Experts, however, see the short timeline for the launch being the main obstacle for the model to enter the market. Felipe Hilzendeger, an automotive engineer with experience in the Brazilian sector, commented that the model will require numerous tests before it can be sold.
“Lecar reignites the potential for Brazil to create and develop cutting-edge, high-tech products. We are hopeful for its success, especially if it utilizes locally produced components and generates more jobs,” Hilzendeger stated. “But we need to be realistic: in my experience, this project is more likely to take shape in 2028, not 2026. It takes at least four years for new models to be launched in a market as demanding as Brazil’s,” he cautioned.
As of August this year, 8.5% of cars purchased in Brazil were electric or hybrid, according to the association Fenabrave. Consulting firm, Jato Dynamics, predicts that electric and hybrid vehicles will account for 25% of national market sales by 2030.
Staking on decarbonization
By joining the Paris Agreement, Brazil committed to reduce greenhouse gas emissions by 37% by 2025, later expanding that target to 48% by 2025. Among the sectors contributing to carbon emissions, the transport sector represents 13% of Brazil’s total emissions, which is relatively low compared to the global average of 17%.
According to a study by the Low Carbon Mobility Cooperation Agreement for Brazil, the country has the potential to play a leading role in the energy transition of the transport sector. The researchers suggest that hybrid vehicles, like the one proposed by Lecar, could further boost the national automotive industry compared to traditional combustion models.
Projections for 2020 to 2050 show that Brazil could earn over R$2.3 billion (US$418 million) from domestic hybrid vehicle production, generate R$877 billion (US$59.4 billion) in economic growth, create over one million new jobs, and raise R$318 billion (US$57.8 billion) in taxes.
In practice, these developments could lead to a reduction of up to 280 million tons of CO2 over the next 15 years. This policy is considered vital as the automotive sector currently emits 242 million tons of CO2 annually and, without adopting measures such as fleet renewal and stricter vehicle inspections, emissions are expected to reach 256 million tons by 2040.
