New Delhi, India, November 18- A boom in South American electric vehicle sales is happening. Chinese carmakers currently lead this rising market. They achieve this success without any major presence from Tesla. Affordable models and new trade routes are fueling the rapid expansion. Consequently, Chinese brands gain a strong foothold in a key global market.
Just a few years ago, buying an electric car in Peru was incredibly difficult. In 2019, Luis Zwiebach, a Peruvian entrepreneur, had to fly to California just to test-drive a Tesla Model 3. Furthermore, he faced Peru’s complex import rules. He eventually bought an already imported vehicle. Early on, charging his car even required improvising a ground wire with a fork.
Now, the situation has changed significantly. Tesla still does not operate a showroom in Peru. However, Chinese brands like BYD, Geely, and GWM have flooded the market. They sell electric vehicles at roughly 60% of a Tesla’s price. Other traditional makers, including Toyota and Hyundai, also offer models now. This influx provides customers with many more accessible options.
Chinese automakers are swiftly increasing their overall market share across South America. This includes both gasoline and electric cars. While electric vehicles still form a small market slice, growth is unmistakable. For example, hybrid and electric vehicle sales in Peru jumped by 44% year-on-year. They hit a record 7,256 units in the nine months leading to September.
A major driver for this surge is the new Port of Chancay, north of Lima. China-built, this megaport opened last year. It dramatically cuts trans-Pacific shipping times. Chinese manufacturers are shipping a surplus of new cars overseas. They face both a tough price war at home and rising trade barriers in the West. Chancay offers a vital gateway to the entire region.
Major Chinese players are expanding their local presence quickly. BYD, which offers EVs, hybrids, and combustion cars, plans a fourth dealership in Lima by year-end. Chery and Geely collectively operate over a dozen dealerships in Peru. Entrepreneur Luis Zwiebach has also expanded his renewables business. He now offers EV charger installations to meet this growing demand. He noted one property developer even requested a car charger with a penthouse purchase.
The Chinese have proven their commitment and quality, according to market experts. In Chile, Chinese brands captured almost 30% of all new passenger car sales in the first quarter. Across Latin America, electric vehicle adoption doubled in 2024. This growth is boosted by new government incentives and cheaper Chinese models. Consequently, the EV market share continues to climb rapidly.
Chile saw EV market share reach 10.6% in September. Brazil hit 9.4% in August. Remarkably, Uruguay registered 28% in the third quarter a regional record. Even Argentina, despite economic challenges, sees rising electric vehicle sales. BYD, already a leader in Brazil, Colombia, and Uruguay, just launched in Argentina. Working with trusted local importers helps Chinese firms offer more affordable, regionally tailored cars.
This shift is most visible in Uruguay. BYD now ranks as the country’s third-largest overall car seller. This follows only General Motors’ Chevrolet and Hyundai. China’s market share in Uruguay has more than doubled since 2023, now reaching 22%. Dealers are actively showcasing Chinese models. For example, Gonzalo Elgorriaga, a luxury car dealer, now sells BYD models alongside European brands. He states that competitive pricing is instrumental to their appeal.
The Port of Chancay is vital to this transformation. Rows of vehicles now line the docks. The port operator, Cosco Shipping, expects about 19,000 Chinese vehicles to arrive by year’s end. Furthermore, Chancay acts as a distribution hub. It sends shipments to Chile, Ecuador, and Colombia. This establishes Peru as a regional logistics center for all types of Chinese cars.
However, the Chinese sales push has created some tensions. In Brazil, industry groups complain about the massive imports of cheap cars. They say it discourages local job creation. Brazil’s government is responding by gradually reinstating import duties. Tariffs on foreign EVs will reach 35% by July 2026. This encourages Chinese firms to invest in local production. BYD and GWM have already begun assembling cars in Brazil.
Despite this challenge, some hurdles remain for EV adoption. Long distances between cities and underdeveloped charging networks pose problems. However, the benefits of Chinese models are clear. Lower maintenance costs and greater affordability attract buyers. South America’s electric vehicle future is taking shape now. Chinese companies clearly dominate this new era of mobility.
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