General Motors (GM) announced on Wednesday that it will begin producing its first hybrid-flex vehicles in Brazil, capable of running on 100% ethanol, gasoline, or a combination of both with their batteries, reported Reuters.
Stellantis and Honda, GM’s rivals, have also revealed plans to introduce hybrid-flex vehicles in Brazil this year. The country’s robust ethanol industry allows most cars to run on 100% biofuel made from sugarcane or corn.
GM stated that two hybrid-flex models will be produced at its factories in São Paulo state, though the specific models were not disclosed. While GM currently manufactures various types of hybrid vehicles, the company is focused on transitioning to fully electric cars in the long term.
As per media report, the launch date for the hybrid-flex vehicles was not specified by GM, but a local union at its São José dos Campos plant mentioned that the first model is expected to be available in 2025.
This move is part of GM’s 7 billion real ($1.42 billion) investment plan for Brazil, which was announced in January. On Wednesday, GM revealed that 5.5 billion reais of this investment will be allocated to its operations in São Paulo state, where it operates two car factories.
According to data from the Fenabrave dealers’ association, GM is the third-largest automaker in Brazil by sales through August of this year.
Brazilian Vice President Geraldo Alckmin noted last year that hybrid-flex vehicles are a valuable asset for the country’s decarbonization efforts.
