Key Points
- Chinese electric vehicle (EV) brands are rapidly expanding their market share across Latin America.
- The affordability of Chinese EVs is a major factor in their success, with some models selling for significantly less than their competitors.
- A new Chinese-built megaport in Peru has cut shipping times, helping to fuel the influx of vehicles.
- Chinese brands are not just exporting; they are also investing in local manufacturing in countries like Brazil.
When Peruvian entrepreneur Luis Zwiebach wanted to buy an electric vehicle in 2019, he had to fly to California to test drive a Tesla. Today, he wouldn’t have to. While Tesla still doesn’t have a showroom in Peru, the country has seen a massive influx of Chinese EV models from brands like BYD and Geely, which sell for about 60% of the price of a Tesla.
Chinese carmakers are expanding their presence all across South America, with both traditional and electric vehicles. EVs are still a small part of the market in Peru, but they’re growing fast. Sales of hybrid and electric vehicles hit a record 7,256 in the first nine months of the year, a 44% increase from the previous year.
This surge in sales has been helped by the opening of the new Port of Chancay, a Chinese-built megaport that has cut shipping times in half. This has been a significant advantage for Chinese manufacturers facing tougher restrictions in the U.S. and Europe.
A major reason for China’s success has been its ability to offer affordable models that are tailored to local tastes. In Uruguay, for example, a BYD electric vehicle can start at just $19,000. “I can buy three Chinese pick-ups for the price of two traditional brands. That’s a big difference,” said one Uruguayan car dealer.
This flood of affordable Chinese cars is having a big impact. In Chile, Chinese brands accounted for nearly 30% of new passenger car sales in the first quarter of this year. In Uruguay, BYD is now the third-biggest seller of all vehicle types, and China’s overall market share in the country has more than doubled since 2023.
Some Chinese companies are also investing in local production. BYD has started assembling EVs at a former Ford plant in Brazil, and Great Wall Motors has taken over a former Mercedes-Benz facility. This is partly in response to countries like Brazil re-imposing import tariffs to protect their local industries.
While challenges like long distances and patchy charging networks remain, the trend is clear. “The Chinese struck first and struck hard,” said one luxury car dealer in Uruguay. With their competitive prices and growing reputation for quality, Chinese automakers are quickly reshaping the car market across Latin America.
