Brazil takes the lead in ethanol-fuelled cars

Tue 15 February 2005 View all news

Sales of cars running on any mixture  of gasoline and ethanol are booming in Brazil. In 2004, nearly 330,000 flex-fuel cars were sold as drivers sought to save money at the fuel pumps where ethanol is around half the price of regular petrol.

The new generation of flex-fuel cars are able to switch to petrol partially or entirely which gives drivers the security of knowing that they will be able to refuel in any situation.

Brazil was the first country in the world to introduce bioethanol production from sugar cane on a large scale in the 1970s. Now ethanol makes up 25% of fuel consumption and there are plans to increase production to meet the demand. Petrol costs have risen in the last year relative to ethanol because of the surge in world crude oil prices.

The range of flex-fuel vehicle options in Brazil is increasing with the introduction by both Ford and GM of new models this year. Other manufacturers are keen to export their technology from Brazil to other potential markets. Volkswagen and Fiat each took a flex-fuel car to China last year during a trade visit by the Brazilian President.

The Brazilian government have also made compulsory the introduction of biodiesel. The fuel, based on vegetable oil, is to comprise 2% of all diesel fuel within 3 years and 5% within 8 years.

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