Summary
- Latin America’s largest vehicle markets are experiencing significant EV growth, with Brazil’s plug-in market share projected to surpass 5% in 2024 and Mexico’s above 2%
- The region’s vehicle market is concentrated in the two largest countries, accounting for two-thirds of total sales
- Countries like Costa Rica, Uruguay, and Colombia are leading the way in EV adoption, while others such as Argentina, El Salvador, and Peru lag behind
- Argentina’s BEV market is growing rapidly due to tariff reductions, with new EV makers entering the market
- Ecuador and Panama are bright spots in the region, showing strong growth in BEV sales and adoption, with Ecuador surpassing Mexico and Panama in sales and reaching price parity with ICE vehicles
Article
Latin America’s largest vehicle markets are experiencing significant growth in electric vehicles (EVs), with Brazil’s plug-in market share expected to surpass 5% in 2024 and Mexico’s above 2%. While countries like Costa Rica, Uruguay, and Colombia are showing meteoric growth in EV adoption, there are also laggards in the region that need to be highlighted. The total vehicle market in Latin America is concentrated in the two largest countries, with EV adoption still far behind China, Europe, and the US. The region has a mix of purely electric vehicles (BEVs) and plug-in hybrids (PHEVs), with a focus on BEV sales in this article.
Countries like Argentina, El Salvador, and Peru are considered the true laggards in terms of EV adoption in Latin America. Peru, for example, has a mystery surrounding its slow EV growth despite its lack of significant oil reserves and close ties with China. El Salvador also has marginal EV sales, while Argentina is facing economic challenges that may impact its EV market. However, recent tariff reductions by President Javier Milei could potentially boost EV sales in Argentina, where the market is starting to show growth.
On the other hand, countries like Ecuador and Panama are bright spots in the region for EV adoption. Panama is showing strong growth in BEV sales, with a commitment to a rapid transition to a mostly BEV market. Ecuador, on the other hand, has seen significant growth in market share, becoming one of the leading countries in terms of BEV sales in Latin America. With affordable EV options like the Leapmotor T03 and BYD dominating the market, Ecuador is on par with Chile in BEV adoption.
Despite some countries lagging behind, the overall trend in Latin America is towards increased EV adoption. While larger markets are transitioning to EVs, smaller markets are also showing growth. Central American countries may continue to import used vehicles, delaying electrification, but overall, EV sales are on the rise across the region. The future looks promising for EV growth in Latin America, with potential for more countries to become leaders in the transition to cleaner transportation.
Read the full article here
