Electric vehicle sales across Latin America are surging as Chinese automakers flood markets with affordable models and outcompete EV pioneer Tesla. Peru saw sales jump 44 percent year-over-year through September, reaching over 7,200 units; Chile hit 10.6 percent market share in September and Uruguay reached 28 percent in the third quarter. Brazil saw 9.4 percent penetration in August.
Chinese brands have now captured nearly 30 percent of Chile’s passenger car sales and 22 percent in Uruguay. Tesla lacks an official presence in South America despite expressing early interest in expanding into the region.
In 2019, Peruvian entrepreneur Luis Zwiebach wanted to buy a Tesla Model 3 and flew to California to test drive the EV but couldn’t navigate import procedures. He eventually bought a used unit from another Peruvian but initially had difficulties charging the Model 3. Tesla still operates no regional showrooms, and its electric cars are still pretty expensive compared to Chinese models.
Conversely, Chinese manufacturers including BYD, Geely, and GWM sell vehicles at roughly 60 percent of Tesla’s prices. China’s Chancay port in Peru has accelerated the expansion of Chinese automakers into the country.
This megaport opened last year north of Lima and has cut trans-Pacific shipping times in half. According to Costco Shipping Deputy Manager Gonzalo Rios, each ship delivers 800 to 1,200 vehicles. Costco Shipping operates the megaport and expects annual vehicle exports from China to hit 19,000 by the end of 2025. The facility currently ships vehicles to Chile, Ecuador, and Colombia, and Peruvian customs data shows that arrivals jumped from 839 cars monthly in January to over 3,000 in July.
With Chinese automakers facing rising barriers of entry into Europe and the U.S., two of the largest EV markets in the world, the largely untapped South American market offers an enticing opportunity for expansion. They are also responding to domestic price wars and overcapacity in their local market by shipping surplus production overseas. JATO Dynamics global automotive analyst Felipe Munoz says most of this overcapacity is now flowing into Latin America, Central Asia, and the Middle East.
Partnering with local importers and offering affordable models tailored to regional preferences has allowed them to capture market share in a market that Tesla has failed to penetrate. BYD leads electric sales in Brazil, Colombia, Ecuador, and Uruguay, ranking as third-biggest seller across all vehicle types in Uruguay, trailing only Chevrolet and Hyundai. The company has plans for a fourth Lima dealership by the end of the year and launched in Argentina last month despite higher trade barriers and economic headwinds. Meanwhile, Chery and Geely now operate over a dozen dealerships combined in Peru.
The aggressive expansion of Chinese firms into the South American market gives North American auto companies like Massimo Group (NASDAQ: MAMO) a playbook that they can replicate within their preferred markets.
About GreenCarStocks
GreenCarStocks (“GCS”) is a specialized communications platform with a focus on electric vehicles (“EVs”) and the green energy sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, GCS is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, GCS brings its clients unparalleled recognition and brand awareness. GCS is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from GreenCarStocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.GreenCarStocks.com
Please see full terms of use and disclaimers on the GreenCarStocks website applicable to all content provided by GCS, wherever published or re-published: https://www.GreenCarStocks.com/Disclaimer
GreenCarStocks
Los Angeles, CA
www.GreenCarStocks.com
310.299.1717 Office
Editor@GreenCarStocks.com
GreenCarStocks is powered by IBN
China has installed roughly 30 two-way charging facilities across nine major cities. The specialized stations…
With electric vehicles entering the market in the near future expected to do far more…
Recent research has revealed that electric cars are still more affordable than internal combustion engine…
Automotive sector sources cited by Automobilwoche report that the European Commission plans to reveal its…
Tesla's October performance across Europe painted a grim picture for the American automaker. Sales plummeted…
Electric vehicle prices are falling faster than ever across the United States, Europe, and China,…