Mathilde Carlier
Research Expert covering transportation and logistics
Electric vehicles in Latin America - Statistics & Facts
In 2024, Latin America attracted investments from the international automotive group Stellantis for the development and production of decarbonization technologies. However, while the region presents various opportunities for automakers, its electric vehicle market is still emerging. November 2024 forecasts project the regional EV market will reach some 41.3 billion U.S. dollars in revenue, up less than one billion compared to 2023. Selected countries are faster to grow their electric vehicle market than others, but regional sales growth is expected to be slower between 2024 and 2029, after shooting up in 2023. Plug-in hybrid electric vehicles should be the most impacted by this sales volume slow-down, which reflects the fact these tend to be less popular than their battery electric vehicle counterparts in many domestic markets.
The Latin American electric vehicle market is slowly growing, impacted by domestic markets which evolve at differing rates. National incentives have the potential to boost EV adoption in each country, but non-rechargeable hybrids remain the most popular segment in many markets. While companies are increasingly investing in Latin America, Chinese automakers are some of the enterprises spearheading these investments and have recorded some success in entering the regional market.
National incentives for an all-electric fleet
The state of the electric vehicle market is intrinsically linked to national incentives to propel it further. Brazil reported the region’s most significant renewable energy capacity at just under 175,300 megawatts in 2023. However, most of its electric vehicle sales were hybrid electric vehicles, primarily powered by their internal combustion engine, as the government faced pressure from lobbies against its 2018 Rota 2030 policy to stop ICE vehicle sales by 2030. Despite these challenges, Brazil also boasted the largest plug-in electric vehicle market in Latin America, partly as many Brazilian states offered tax exemptions for EVs, but still relies heavily on plug-in hybrid sales rather than all-electric vehicles. At the end of 2030, the country announced a new green mobility program to replace its Rota 2030 policy, including four billion U.S. dollars in incentives. While the impact of this new program remains to be seen, it showcases that regional leaders are investing in growing their EV market.A young market ripe for competition
The growth of the electric vehicle market in Latin America is also an opportunity for automakers to increase their visibility within the region. While Tesla halted its gigafactory plans in Mexico until at least after the presidential elections in the United States, Chinese companies have been entering the Latin American electric vehicle market. JAC, BYD, and Chery were among the brands with the largest shares of the Latin American EV revenue in 2023. In Brazil, three of the ten best-selling EV models were from BYD, with another two from other Chinese brands. These Asian brands were also popular in other countries, such as Chile and Colombia. This success is in part due to the price point of Chinese electric vehicles, which tend to be attractive for the price sensitive consumers of the region. Importantly, this increase in sales of electric vehicles from China contributes to reshaping the country’s economic relationship with Latin America: The region presents strategic opportunities in the EV value chain, in particular regarding the mining of critical minerals such as lithium which are found in large quantities in the region.The Latin American electric vehicle market is slowly growing, impacted by domestic markets which evolve at differing rates. National incentives have the potential to boost EV adoption in each country, but non-rechargeable hybrids remain the most popular segment in many markets. While companies are increasingly investing in Latin America, Chinese automakers are some of the enterprises spearheading these investments and have recorded some success in entering the regional market.
