Green transformation of South American logistics accelerates, LPG forklift market share surges 27% in 2025

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October 15, 2025, Sao Paulo, Brazil - Driven by renewable energy transformation and industrial cost pressure, the liquefied petroleum gas (LPG) forklift market in South America is experiencing explosive growth. According to the latest report from Interact Analysis, an industry authority, sales of LPG forklifts in South America are expected to exceed 42,000 units in 2025, a year-on-year increase of 27%, making it the fastest growing regional market in the world. With its low carbon emissions, fuel cost advantages and adaptability to extreme environments, LPG forklifts are reshaping the energy options for South American manufacturing, agriculture and port logistics.

Three core trends in the South American LPG forklift market in 2025
1. Policy promotion: a combination of clean energy subsidies and tax incentives
- Brazil's "Carbon Neutrality 2030" plan: Provide 15% income tax exemptions for companies that purchase LPG equipment, and advance the deadline for mandatory replacement of diesel engines for port operation vehicles to 2026.
- Argentina's Sustainable Logistics Act: LPG forklifts are included in the "Green Equipment List" and can apply for a purchase subsidy of up to 30% (limited to agricultural and food processing companies).
- Colombia's fuel tax reform: The diesel surcharge is raised to 12%, and the LPG tax rate remains at 5%, which indirectly reduces the operating costs of forklifts.

2. Economic drive: The cost advantage of the entire life cycle is prominent
- Fuel cost savings of 30%: Taking the Brazilian market as an example, the price of LPG is stable at US$0.45/liter, and the price of diesel is affected by international fluctuations and is higher than US$0.68/liter all year round.
- Improved maintenance efficiency: The LPG engine has a simplified structure, and the mean time between failures (MTBF) reaches 1,200 hours, which is 40% longer than that of diesel models (data source: South American Construction Machinery Association).
- Residual value advantage: The resale price of used LPG forklifts is 18% higher than that of diesel models, attracting small and medium-sized enterprises to lease and purchase.

3. Scenario adaptation: High temperature and heavy load demand stimulate technology iteration
- High temperature resistant technology upgrade: The new LPG engine can operate continuously at 55℃ (such as the Atacama Desert mining area in Chile), and the energy consumption of the cooling system is reduced by 25%.
- Popularization of heavy-duty models: Brazil's automobile manufacturing industry has driven the growth of demand for 10-ton LPG forklifts, and the load efficiency is 35% higher than that of electric models.
- Mixed fuel innovation: The mixing ratio of Bio-LPG (bio-liquefied gas) has been increased to 30%, and carbon emissions have been reduced by another 22%, which has won the favor of Uruguayan meat export giants.

Industry leader case: South American localization strategy has achieved remarkable results
Case 1: Brazilian sugar giant Copersucar
In 2025, Copersucar will replace 87 diesel forklifts in the Sao Paulo warehouse with LPG models, combined with biogas supply, to achieve an annual reduction of 4,600 tons of carbon dioxide emissions and a profit of US$120,000 through carbon trading.

Case 2: Flores de los Andes, a Colombian flower exporter
After adopting LPG narrow-aisle forklifts, the storage density of Bogota's cold storage increased by 30%, fuel costs decreased by 41%, and the impact of diesel exhaust on flower quality was completely eliminated.

Technological breakthroughs and supply chain layout
- Intelligent gas volume management system: real-time monitoring of gas consumption, with a range prediction accuracy of 98% (application case: Argentina's Ternium steel plant).
- Localized energy supply network: The coverage rate of LPG gas stations in South America has increased to 73%, and Shell and Petrobras have jointly launched the "mobile gas truck on call" service.
- Safety standard upgrade: The South American Common Market (MERCOSUR) requires LPG forklifts to be equipped with explosion-proof sensors and automatic gas shut-off valves, and the accident rate has dropped by 65%.

Future outlook: Market penetration may exceed 40% in 2026
- Policy enhancement: Chile plans to include LPG equipment procurement in the "National Green Credit Program" and provide special loans with an annual interest rate of 3%.
- Technology integration: LPG mixed hydrogen (H2-LPG) technology has entered the actual testing stage and is expected to be commercialized in 2026 (pilot project: Peruvian copper mine).
- Industry chain collaboration: Chinese manufacturer Xiamen Haifan and Brazilian distributor RHM Equipamentos have built a local assembly plant, with production capacity increased to 5,000 units per year and delivery cycle shortened to 30 days.

Enterprise Voice
"The explosion of the South American market stems from the pragmatic pursuit of "economic and environmental win-win", "said Carlos Almeida, general manager of Xiamen Haifan South America, "Our Tropical Pro series LPG forklifts designed specifically for South America use anti-corrosion coatings and intelligent temperature control technology. It has served more than 200 customers and has a failure rate 52% lower than the industry standard."

About Xiamen Haifan Machinery Equipment Co., Ltd.
After more than ten years of deep cultivation in the South American market, Xiamen Haifan has become a core supplier of LPG forklifts in Brazil, Argentina and other countries, with a stable market share in the top three. The company has passed ISO 14067 product carbon footprint certification and provides one-stop solutions from equipment selection, gas supply to training and maintenance, helping South American companies move towards sustainable logistics.