The automotive industry highlights biofuels on the decarbonization and energy transition agenda.

Decarbonization is already leading the agenda of the Brazilian automotive industry and accounts for 27.1% of the sector's priorities until 2028, according to the "IQA Study: Automotive Quality Scenario in Brazil 2026-2028," prepared by IQA – the Automotive Quality Institute, with the participation of 60 leaders from the production chain. The survey indicates that the energy transition in the country should follow a multi-technology model, based on a combination of gradual electrification, hybrid systems, and the use of biofuels. This approach reflects both the Brazilian energy matrix and the search for more viable alternatives from an economic and environmental point of view. In addition to decarbonization, pressures related to ESG criteria appear with 23.7% of mentions among the most relevant topics, followed by electrification, with 20.3%. The scenario points to increased demands for emission reduction, traceability, and transparency, driven by international regulations, investors, and changes in consumer behavior. In this context, Brazil tends to differentiate itself from markets that are moving towards full electrification by betting on lower-emission solutions based on biofuels and hybrid technologies. The sector sees this strategy as a way to balance sustainability and competitiveness, especially given infrastructure and cost limitations. “The energy transition requires an approach aligned with the country's characteristics, combining different technologies to guarantee environmental gains in a sustainable way,” says Alexandre Xavier, managing director of IQA. Despite the opportunities, the study points to significant structural challenges. The need for investments in infrastructure, technological development, and professional training appears among the main obstacles, in addition to the need to expand and update specific regulations to keep pace with the sector's evolution. The environmental agenda also has economic impacts. Although sustainability is treated as strategic, there are still uncertainties about cost, financial return, and implementation feasibility, especially in more sensitive segments of the automotive supply chain. In this scenario, the evolution of quality requirements and technological solutions plays a central role in consolidating more sustainable and efficient models throughout the entire production chain. “The energy transition in the automotive sector demands integration between technology, quality, and professional training, ensuring that the solutions adopted are sustainable from both a technical and industrial standpoint,” emphasizes the president of IQA, appointed by the National Association of Automotive Vehicle Manufacturers (Anfavea), Cláudio Moysés. The survey also points to the intensification of international competition in the sector, with the entry of new manufacturers and importers into the Brazilian market. On the other hand, the study indicates room for Brazil to play a leading role in the sustainable mobility agenda, with the potential to consolidate itself as a benchmark in low-emission solutions, especially in the use of biofuels and the development of more efficient engines. The sector's assessment is that the energy transition will not be linear and will require integration between technology, quality, regulation, and professional training to ensure a balance between sustainability and competitiveness. :: IQA Study: Automotive Quality Scenario in Brazil until 2028 The “IQA Study: Automotive Quality Scenario in Brazil 2026-2028”, launched on May 18th, was developed with the participation of 36 entities and 60 industry leaders, representing sectoral entities that encompass approximately 230,000 companies operating in all links of the automotive supply chain, from production to after-sales. The research combines interviews, questionnaires, and data analysis to map technological trends, industrial challenges, and the role of quality in the sector's competitiveness. The material will be made available to the public through IQA's official channels after the launch. 

This text was translated by machine from Brazilian Portuguese.