Electric Vehicles - Chile | Statista Market Forecast

The Electric Vehicles market in Chile is projected to reach a revenue of US$79.9m by 2024.
It is expected to demonstrate an annual growth rate (CAGR 2024-2029) of 7.16%.
This growth would result in a projected market volume of US$112.9m by 2029.
Furthermore, the unit sales of Electric Vehicles market in Chile are anticipated to reach 1.36k vehicles by 2029.
In 2024, the volume weighted average price of Electric Vehicles market in Chile is expected to be US$86.6k.
It is worth noting that, from an international perspective, China is projected to generate the highest revenue of US$376bn in 2024 in the Electric Vehicles market.
Chile is emerging as a leader in the electric vehicle market, driven by government incentives and a growing charging infrastructure.

CO2 emissions exert a profound influence on climate and the environment, fueling the greenhouse effect and contributing significantly to global climate change. Nearly one-fourth of these emissions worldwide can be attributed to the transportation sector. Electric vehicles (EVs) emerge as a promising solution, potentially acting as a carbon-neutral alternative when powered by renewable energy sources. This underscores their pivotal role in mitigating the impact of traditional combustion engine vehicles on the environment.

The Electric Vehicles market includes information about electric vehicles in countries where, according to our sources, a public electric vehicle charging infrastructure is already available. In this context, “public” means that people have unrestricted access to the charging infrastructure. A vehicle can be defined as electric if it is self-contained with a battery or classified as a plug-in hybrid. All key figures shown represent the sales of new cars, and their basic configuration in the respective year. The figures do not include the sale of used vehicles nor adapted equipment for the new cars sold. The prices and revenues shown are accordingly based on the basic models.

The Electric Vehicle market is divided into distinct two distinct markets, namely Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). This categorization allows for a nuanced understanding of the market dynamics, considering the specific attributes and market penetration of each electric vehicle type. The emphasis on new car sales and their foundational configurations ensures clarity, while the exclusion of used vehicles and customizations maintains focus on the evolving landscape of electric vehicles.

Battery electric vehicles (BEVs)
Plug-in hybrid electric vehicles (PHEVs)
Road electric vehicles
Passenger Cars

Electric vehicles that are not self-contained and cannot be classified as BEVs or PHEVs
Rail electric vehicles
Surface and underwater vessels
Electric aircraft or spacecraft
Motorcycles, scooters, mopeds, buses, vans, and trucks

The Electric Vehicles market in Chile has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Chilean consumers are increasingly interested in electric vehicles due to their environmental benefits and lower operating costs. As awareness of climate change and air pollution grows, more people are looking for ways to reduce their carbon footprint. Electric vehicles offer a cleaner alternative to traditional gasoline-powered cars, as they produce zero tailpipe emissions. Additionally, the lower operating costs of electric vehicles, such as lower fuel and maintenance expenses, make them an attractive option for cost-conscious consumers.

Trends in the market: One of the key trends in the Electric Vehicles market in Chile is the expansion of charging infrastructure. To support the growing number of electric vehicles on the road, the government and private companies have been investing in the installation of charging stations across the country. This infrastructure development is crucial for the widespread adoption of electric vehicles, as it addresses the issue of range anxiety and provides convenience for vehicle owners. Another trend in the market is the increasing availability of electric vehicle models. As more automakers recognize the demand for electric vehicles in Chile, they are introducing a wider range of models to cater to different customer preferences. This increased variety of options gives consumers more choices and makes electric vehicles more accessible to a larger segment of the population.

Local special circumstances: Chile has a unique advantage when it comes to electric vehicles due to its abundant renewable energy resources. The country is a global leader in renewable energy production, particularly in solar and wind power. This renewable energy capacity provides a sustainable and clean source of electricity to power electric vehicles, further enhancing their environmental benefits. Additionally, the government has implemented policies to promote renewable energy adoption, creating a favorable environment for the growth of the Electric Vehicles market.

Underlying macroeconomic factors: The growth of the Electric Vehicles market in Chile is also influenced by underlying macroeconomic factors. The government has implemented various incentives and subsidies to promote the adoption of electric vehicles, such as tax breaks and exemptions, reduced import tariffs, and financial incentives for purchasing electric vehicles. These measures help lower the upfront cost of electric vehicles and make them more affordable for consumers. Furthermore, the government's commitment to reducing greenhouse gas emissions and transitioning to a more sustainable transportation system provides a supportive policy framework for the Electric Vehicles market. This long-term vision and commitment create stability and confidence in the market, encouraging investment and innovation in the electric vehicle industry. In conclusion, the Electric Vehicles market in Chile is experiencing growth due to customer preferences for environmentally-friendly and cost-effective transportation options, market trends such as the expansion of charging infrastructure and increasing availability of electric vehicle models, local special circumstances including abundant renewable energy resources, and underlying macroeconomic factors such as government incentives and policies. These factors are driving the adoption of electric vehicles in Chile and shaping the future of the transportation sector in the country.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).

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For the first time in the past decade, lithium-ion battery pack costs increased in 2022 due to the raw material and battery component soaring price inflation. However, this increase in production cost has not slowed down the global electric vehicle (EV)market. Electric vehicle sales have increased tremendously over the past decade.