Global Issues
Latin America’s Electric Mobility on China’s Path
RIO DE JANEIRO, August 7 (IPS) - Residents near the port of Itajaí in southern Brazil celebrated the arrival of 7,292 electric and hybrid vehicles from China aboard the ship BYD Shenzhen on May 28 as a “historic event,” with unloading taking four days.
It was a record in maritime vehicle transport, but similar operations had already occurred in Brazil and other Latin American countries. A year earlier, the port of Suape in northeastern Brazil received 5,459 units also from BYD, the world’s largest electric vehicle manufacturer.
China’s automotive industry, led by BYD, is the decisive factor driving electric mobility in Latin America and the Caribbean.
Over the past four years, the number of light electric vehicles in the region has nearly doubled annually, with a 187% jump in 2024, reaching 444,071 by the end of December, according to the Latin American Energy Organization (Olade), whose data excludes non-plug-in hybrids.
This is relatively small, representing only 0.7% of the world’s electric vehicle fleet and 0.3% of the region’s total light vehicles, as noted in Olade’s technical report in May. But it signals great expansion potential, now being fueled by Chinese vehicles.
Lower prices and improving quality make Chinese units competitive amid growing demand for transport electrification in the region, according to Fitzgerald Cantero, Director of Studies, Projects, and Information at Olade.
With their exports to the U.S. and the European Union (EU) practically blocked by 100% and 45.3% tariffs, respectively, Chinese electric vehicles see Latin America as “an attractive market” that remains open, along with Asia, he reasoned.
Renewable Energy and Lithium as Attractions
An additional Latin American attraction is its abundance of renewable energy, Cantero told IPS by phone from Quito, Olade’s headquarters. Using sustainable electricity is essential to meet the goal of decarbonizing transport and reducing planet-warming emissions.
Moreover, some countries in the region are rich in minerals needed for vehicle electrification, such as lithium for batteries, copper for electrical components, and rare earths containing 17 chemical elements used in magnets for electric car motors, wind turbines, and other strategic technologies.
Thus, the region has become a priority for China, the automotive superpower where 12.87 million electric passenger vehicles were sold in 2024, plus 2.2 million exported—figures close to half of all new cars sold domestically and abroad, according to data compiled by Olade.
China’s leadership is more than absolute, as the next powers—the EU and the U.S.—produced only 2.4 million and 1.1 million electric vehicles, respectively, in 2024, according to the International Energy Agency.
Olade estimates that China accounted for over 75% of global electric vehicle sales. This share is likely to grow, as the European market has stagnated and the U.S. has rolled back its environmental policies.
“The (U.S.) electric vehicle industry has been discouraged by new legislation, which will have a dramatic impact on consumer preferences,” said Margaret Myers, director of the Asia and Latin America Program at the Inter-American Dialogue.
Meanwhile, China is boosting exports of its production surplus, particularly to Global South markets with fewer import restrictions, she noted.
For China, “electric vehicle production is part of a broader effort to improve its economy and secure dominance in key industries, including EVs and their batteries, renewable energy, artificial intelligence, bioscience, and other priorities,” Myers concluded to IPS from Washington.
Large Markets Concentrate Sales
For now, Latin America remains a net importer. Brazil and Mexico are the largest markets, accounting for 73.6% of electrified vehicle sales (including fully electric, plug-in hybrid, and non-plug-in hybrid models) in the region, according to data from the Latin American Association of Automotive Distributors (Aladda), headquartered in Buenos Aires.
Their share of the population is much smaller. Brazil, with 212 million people, and Mexico, with 130 million, make up just 51.2% of Latin America and the Caribbean’s 668 million inhabitants.
Argentina, in fourth place with 47 million people, does not rank among the top eight in motor transport electrification. Colombia, the third most populous with 53 million, is also third in Aladda’s ranking.
Colombia and Chile lead in electric buses, with 1,590 and 2,600 operating in their cities as of December 2024, respectively, according to Olade. Brazil, despite its much larger population, has only 900—far fewer than Chile, a country of just 18.5 million people.
Three Waves
“The evolution of electromobility in Chile had its first wave between 2017 and 2020, focused on public transportation—specifically electric bus systems,” recalled Cristóbal Sarmiento Laurel, Director of Energy and Sustainable Development at the private Diego Portales University.
The goal was to introduce the new technology in a “more feasible way, since buses operate on controlled routes and schedules, making charging planning easier,” he explained. BYD was the key player in this phase.
The second wave, starting in 2021, saw a “steady rise in sales of light hybrid and fully electric vehicles, with growing market presence from Chinese manufacturers like BYD, Maxus, JA, DFSK, and Changan, which quickly gained ground in the domestic market,” he added.
“China has been pivotal in this journey. Beyond providing more affordable vehicles, its technological leadership and mass production capacity have shaped global trends. For Chile, this relationship isn’t just a commercial opportunity but also a concrete way to accelerate the energy transition,” Sarmiento emphasized.
“Transport accounts for 33.3% of Chile’s energy consumption, according to the National Energy Balance, and relies almost entirely on fossil fuels”, therefore, electrification helps mitigate climate change, Sarmiento told IPS in Santiago.
“Not using fossil fuels is a solution,” but electrified cars “promote individual mobility rather than transforming transportation systems or boosting public transit,” noted Antonio del Río, a researcher at the Renewable Energy Institute of Mexico’s National Autonomous University.
More electric buses—whether Chinese or from other origins—are the way forward, he argued. “The cost per kilometer for an electric vehicle is 60% lower than a conventional car,” he said to IPS in Mexico City.
By the end of 2024, Mexico had only 780 electric buses, according to Olade data—half as many as Colombia, or a quarter per capita.
Mexico mirrored the region’s surge in electrified vehicle sales, which reached 412,493 units in 2024, up 174.9% from 2022, according to Aladda. Brazil led growth among major countries with a 256.2% increase, while Mexico saw 142.2%.
Despite the sharp rise, electrified vehicles still represent a small share of total sales: 8.1% regionally on average, 6.8% in Brazil, and 6.1% in Chile in 2024. Colombia stands out at 25.8%.
The most dramatic two-year growth—665.3% regionally—was in plug-in hybrids (PHEVs), followed by pure electric vehicles (EVs) at 403%. Non-plug-in hybrids (HEVs) lost momentum in Brazil but grew in Mexico, Chile, Colombia, and Peru, especially in 2024.
Another notable trend is the diversity of Chinese brands—23 in both Mexico and Chile. Chile has 52 brands total, including Chinese and others, according to Rodrigo Salcedo, president of Chile’s Electric Vehicle Trade Association (Avec).
The influx of new brands has heightened competition, bringing more options, models, and prices that are gradually approaching those of conventional cars. However, “there’s a gap,” lamented Salcedo, pointing to the lack of information, workshops, and trained technicians for maintenance—except for buses, which benefit from Chinese technicians in Chile.
Third Wave
Meanwhile, a third wave of electric mobility is emerging in the region, following the initial phases of electric buses and the mass availability of light vehicles at falling prices. This new phase involves the establishment of assembly plants, including Chinese ones.
In Brazil, two Chinese automakers have begun local production of electrified vehicles. BYD (short for Build Your Dreams) started production in July at its assembly plant in Camaçari, Bahia, rolling out three models—one fully electric and two plug-in hybrids. And GWM (Great Wall Motors) is set to begin production this semester in Iracemápolis, São Paulo.
Symbolically, both manufacturers took over former plants of traditional automakers—Ford (U.S.) and Mercedes-Benz (Germany), respectively.
While Chinese-branded cars have been produced in Brazil since 2017 (such as those from the Caoa-Chery joint venture in Anápolis, Goiás), their electrified models, introduced in 2019, were limited in volume.
BYD’s plant marks a new era, designed to assemble 150,000 units annually initially, with plans to double that capacity. The project also includes battery and auto parts production, along with a logistics system, explained Mauro Pereira, general superintendent of Camaçari’s Industrial Development Committee (Cofic).
Cofic manages the Camaçari Industrial Park to create the best operating conditions for 88 local companies, including BYD.
“BYD is putting Brazil at the forefront of vehicle technology,” Pereira stated, anticipating 20,000 direct jobs and triple that in indirect employment. The plant could also turn Brazil into an export hub for vehicles and components, including batteries, to Latin America and possibly Europe.
The Camaçari plant benefited from land incentives and tax breaks, but the real driver was Brazil’s import tariffs on electric vehicles, introduced in January 2024. Starting at 10% (slightly higher for hybrids), they will gradually rise to 35% by 2027.
Chinese new-energy vehicles are cutting costs with advanced, efficient, and intelligent technologies—”they’re smartphones on wheels,” said Thiago Sugahara, VP of the Brazilian Electric Vehicle Association and GWM’s institutional relations manager. Users can control and monitor their cars remotely and safely via smartphone, he explained.
“An electric car is a battery with four wheels,” quipped Ana Lia Rojas, head of Chile’s Renewable Energy and Storage Association (Acera), highlighting both the vehicle’s key component —still costly—, and their potential to support power grids.
Colbert Marques, a sales consultant at Itavema (a BYD dealership network), noted that Chinese manufacturers halved EV prices. Today, models start at just over US$20,000, forcing Western brands to slash prices to stay competitive.
Buyers of EVs and hybrids “are more informed and tech-savvy, even older ones,” he observed, confident in his decision to switch to BYD in 2023, having driven traditional vehicles for 18 years.
With contributions from Orlando Milesi (Chile) and Emilio Godoy (Mexico)
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