Brazil CNG Vehicles Market

Brazil CNG Vehicles Market Insights Forecasts to 2035

• Brazil CNG Vehicles Market Size 2024: USD 2,440.3 Mn
• Brazil CNG Vehicles Market Size 2035: USD 10,226.7 Mn
• Brazil CNG Vehicles Market CAGR: 13.91%
• Brazil CNG Vehicles Market Segments: Type and Application

The market for Brazil CNG vehicles comprises the various types of vehicles that run on compressed natural gas that are new car OEM products that are produced as CNG OEMs or as aftermarket modified automobiles using CNG conversion kits that run on CNG. These vehicles have lower operational costs related to gasoline, lower emissions of carbon from the fuel being used, and provide drivers with significantly more miles per gallon than standard DIY or regular gasoline-powered cars.

 

There is immense demand for the adoption of CNG vehicles in Brazil. The demand for this product is being fuelled by increasing gasoline prices, the increased use of alternative fuels, Brazil’s growing network of CNG refuelling stations located in urban areas of the country, and the Brazilian governments and the governments of several major states offering financial incentives to both consumers and companies to increase the use of CNG vehicles. Brazilian governments and private fuel companies have been expanding their networks of publicly available CNG stations located throughout the country to promote the use of CNG vehicles. To further promote the growth of the CNG industry in Brazil, both private companies and state governments have developed tax incentives, waiving registration fees, and providing support in the form of subsidies to reduce the price of CNG to both consumers and companies.

 

There have been significant technological advancements in the CNG vehicles marketplace including the development and manufacture of lightweight, high-pressure cylinder tanks, advancements in fuel injection technologies, improvements to safety valves in modern CNG vehicles, and the tuning of CNG vehicle engines for improved fuel economy. The continued development of dual-fuel compatibility and improved driving range have made CNG vehicles more appealing for personal car use as well as for businesses using CNG-powered vehicles for commercial purposes.

 

Market Dynamics of the Brazil CNG Vehicles Market

The Brazil CNG vehicles market is driven by Rising gasoline and diesel prices, environmental issues, and increased government assistance supporting clean mobility solutions. Rising urban transportation demands, a plentiful supply of natural gas, and CNG's lower operating costs are creating appealing options for both personal vehicle owners and fleet managers. CNG vehicles are rapidly gaining popularity among taxis, e-hailing drivers, and logistics fleets in conjunction with the increasing development of refuelling stations. These trends have led to the rapid growth of the Brazil CNG vehicle market.

 

The Brazil CNG vehicles market is restrained by high initial conversion costs, lack of refuelling infrastructure in rural regions, loss of cargo area in the vehicle due to the placement of the cylinder, and the perception of safety are some of the factors limiting the size of the Brazil CNG vehicle market. The lack of consistent regulations among the various states and the continual competition from electricity and hybrid vehicle manufacturers will also limit the expansion of this market.

 

The ongoing expansion of the natural gas distribution system, the gradual acceptance of CNG in the commercial fleet arena, and the introduction of factory-equipped CNG vehicles represent significant opportunities that will create substantial growth in the future Brazil CNG market. Creating additional investment in sustainable transportation, allowing for CNG vehicles' integration into car-sharing companies, and developing lighter-weight storage systems for CNG are all expected to develop significant growth potential over the next several years.

 

Market Segmentation

 

The Brazil CNG vehicles market share is classified into type and application.

 

By Type:

The Brazil CNG vehicles market is divided by type into OEM and car modification. Among these, the car modification segment dominated the market share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. This dominance is attributed to the Several factors including the large existing base of gasoline-powered vehicles already in use, the availability of low-cost conversion options to NGVs, and access to a vast network of certified retrofit kit suppliers across Brazil, make this category particularly attractive for growth.

 

By Application:

The Brazil CNG vehicles market is divided by application into personal use and commercial use. Among these, the commercial use segment accounted for the highest share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The large amount of fuel consumed by taxis, buses, delivery fleets, and ride-hailing services drives down costs and makes CNG the most attractive option for these types of operators.

 

Competitive Analysis

The report offers the appropriate analysis of the key organisations/companies involved within the Brazil CNG vehicles market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

 

Top Key Companies in Brazil CNG Vehicles Market

• Volkswagen Brazil
• General Motors Brazil
• IVECO Brazil
• Scania Brazil
• Landirenzo Brazil
• Tomasetto Achille Brazil
• GNV Brasil
• AGA CNG Systems
• Ecomotive Brasil
• Others

 

Recent Developments in Brazil CNG Vehicles Market

 

In November 2024, Fiat Brazil introduced new bio-hybrid and alternative fuel technologies in its vehicle lineup, expanding its offerings toward cleaner mobility solutions in the Brazilian market.

 

In November 2025, Volkswagen Brazil received significant funding from Brazil’s national development bank to support electrification and flex-fuel vehicle development, boosting its capabilities for future alternative fuel models.

 

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities
• Consulting and Research Firms
• Venture Capitalists
• Value-Added Resellers (VARs)

 

Market Segment

This study forecasts revenue at the Brazil, regional, and country levels from 2020 to 2035. Decisions Advisors has segmented the Brazil CNG vehicles market based on the following segments:

 

Brazil CNG Vehicles Market, By Type

• OEM
• Car Modification

 

Brazil CNG Vehicles Market, By Application

• Personal Use
• Commercial Use

 

FAQ

Q: What is the Brazil CNG vehicles market size?

A: Brazil CNG Vehicles Market is expected to grow from USD 2,440.3 million in 2024 to USD 10,226.7 million by 2035, growing at a CAGR of 13.91% during the forecast period 2025–2035.

 

Q: What are the key growth drivers of the market?

A: Growth is driven by rising fuel prices, strong natural gas availability, government incentives, increasing adoption in commercial fleets, and growing demand for low-emission and cost-effective transportation solutions.

 

Q: What factors restrain the Brazil CNG vehicles market?

A: High initial conversion costs, limited rural refuelling infrastructure, safety concerns, and competition from electric vehicles restrain market growth.

 

Q: How is the market segmented by type?

A: The market is segmented into OEM and car modification.

 

Q: Who are the key players in the Brazil CNG vehicles market?

A: Key companies include Fiat Brazil, Volkswagen Brazil, General Motors Brazil, IVECO Brazil, Scania Brazil, Landirenzo Brazil, Tomasetto Achille Brazil, and others.

 

Q: Who are the target audiences for this market report?

A: The report targets market players, investors, end-users, government authorities, consulting and research firms, venture capitalists, and value-added resellers (VARs).