SAO PAULO, May 29 (Reuters) - A group of companies

aiming to expand urban transportation in Brazil has doubled its

electric vehicle target to 20,000 after performing better than

expected since its launch in 2022, the initiative's leader,

ride-hailing app 99, said on Wednesday.

The alliance, which includes companies such as Raizen

, car rental company Movida and Chinese

automaker BYD, had planned to reach 10,000 electric

cars connected to 99's app by the end of 2025. But, given the

figures so far, the group has doubled that target.

"The target was 3,500 this year and we're now at 4,100.

We've revised it to 8,000 this year and 20,000 next year,"

Thiago Hipolito, senior director of innovation at 99, told

Reuters.

99, Uber's ( UBER ) biggest rival in Brazil and controlled

by China's DiDi, did not disclose the investment made

in the alliance, but Hipolito said that in the last two years,

the group of companies had injected 245 million reais ($47.34

million) into the initiative.

The increase in the target comes shortly after Brazil

surpassed Belgium as the largest export market for Chinese new

energy vehicles. In April, China's exports of electric cars and

plug-in hybrids to Brazil increased 13-fold year-on-year to

40,163 vehicles.

This surge in Chinese electric vehicles in the Brazilian

market prompted the government to announce a gradual increase in

import taxes on EVs last January. By mid-2026, the tax will

reach 35%, but this will not be a problem for the alliance,

Hipolito said.

"To get around the import tax, we're going to have a local

factory," said the executive, referring to BYD's production

centers in Bahia state and GWM's in Sao Paulo.

"We thought tax might be a problem, but with the evolution

of strategies and technology, it won't be," said Hipolito,

referring to the drop in vehicle prices since 2022 and greater

availability of models in the country.

($1 = 5.1750 reais)