China’s Auto Industry Reshapes South America’s EV Market

When Peruvian renewable energy entrepreneur Luis Zwiebach sought to purchase an electric vehicle in 2019, he traveled 4,000 miles to California to test drive Tesla’s Model 3, only to find that the absence of an official importer and Peru’s complicated import rules made ownership unfeasible. Today, acquiring an EV in Peru has become far easier. Although Tesla still lacks a local presence, the market has been transformed by an influx of Chinese brands such as BYD, Geely and GWM—offering models at roughly 60% of Tesla’s price—as well as by established manufacturers like Toyota, Kia and Hyundai; Tesla did not comment on the situation.

Chinese automakers are steadily expanding across South America with both conventional and electric vehicles. EVs remain a small portion of the 135,394 new cars sold in Peru during the first nine months of the year, according to the national automotive association, but their presence is growing, with hybrid and electric sales climbing 44% year-on-year to a record 7,256 units. Their advance has accelerated since the launch of the Chinese-built Port of Chancay north of Lima, which has cut trans-Pacific shipping times in half at a moment when Chinese manufacturers face increasing barriers in the U.S. and stricter trade rules in Europe.

BYD, which produces EVs, plug-in hybrids and combustion models, plans to open a fourth dealership in Lima by year-end, while Chery and Geely together operate more than a dozen outlets in Peru. Zwiebach notes that electric vehicles are performing strongly, with more than two being sold each day. Chinese carmakers are grappling with intense domestic price competition and a growing oversupply from their factories, prompting them to send more vehicles to markets such as the Middle East, Central Asia and Latin America, according to Felipe Munoz of JATO Dynamics. Their presence spans both electric and gasoline models, with Chile’s automotive chamber president Martin Bresciani noting that Chinese brands have already proven they meet global quality standards.

Chinese manufacturers accounted for 29.6% of all new passenger car sales in Chile in the first quarter. EV adoption across Latin America—Mexico and Central America included—has doubled in 2024 to around 4%, driven by government incentives and the availability of inexpensive Chinese vehicles, the International Energy Agency reported in its Global EV Outlook 2025. Recent data show EV market share reaching new highs: 10.6% of new registrations in Chile in September, 9.4% in Brazil in August, and 28% in Uruguay in the third quarter. For comparison, EVs made up 56% of new registrations in Europe and 51% in China by mid-2025, while Japan and the United States remained lower at roughly 2% and 10%.

Even Argentina, despite economic challenges and stricter trade barriers, is seeing EV demand rise from a modest base. BYD, China’s largest automaker, entered the Argentinian market in October and already leads electric car sales in Brazil, Colombia, Ecuador and Uruguay. A major factor behind China’s success is its partnerships with reputable local importers, enabling competitively priced models tailored to local preferences, according to dealers interviewed in Peru, Chile, Uruguay and Argentina.

The shift is particularly striking in Uruguay, where BYD is now the third-largest seller across all vehicle categories, behind only Chevrolet and Hyundai. Chinese brands have doubled their market share since 2023, reaching 22%, supported by strong brand recognition, collaborations with local banks offering credit programs and promotional incentives, and highly competitive pricing. In Uruguay, BYD’s battery-electric vehicles start at approximately $19,000, underscoring the affordability behind China’s rapid ascent.