Montevideo/Lima/Chancay, Nov 17, 2025 – Electric vehicle (EV) sales are accelerating across South America, driven primarily by Chinese automakers rather than Tesla (TSLA.O), which still lacks official showrooms or import channels in most countries.

Peruvian entrepreneur Luis Zwiebach experienced the difficulty firsthand in 2019 when he flew 4,000 miles to California to test-drive a Tesla Model 3. Tesla’s absence of an official importer and Peru’s complex import rules forced him to rely on a private reseller to acquire the car. Charging was equally tricky, requiring makeshift grounding solutions at his friend’s beach house near Lima.

Today, EV adoption is far simpler in Peru. Chinese brands like BYD, Geely (0175.HK), and Great Wall Motors (GWM) sell models at roughly 60% of Tesla’s price. Legacy manufacturers including Toyota (7203.T), Kia (000270.KS), and Hyundai (011760.KS) are also participating in the growing market.

Chinese Automakers Expand Rapidly

The opening of the Port of Chancay, built under China’s Belt and Road Initiative, has accelerated imports of Chinese vehicles. The megaport has reduced trans-Pacific shipping times by half, allowing Chinese automakers to bypass rising trade barriers in the U.S. and Europe.

• BYD plans to open its fourth dealership in Lima by year-end.
• Chery and Geely collectively operate over a dozen dealerships in Peru.

Sales of hybrid and electric vehicles reached 7,256 units in the first nine months of 2025, up 44% year-on-year. EV penetration across Latin America, including Mexico and Central America, doubled in 2024 to around 4%, with record shares in:

• Chile: 10.6% of new cars (September)
• Brazil: 9.4% (August)
• Uruguay: 28% (Q3)

Chinese Market Share Gains

Chinese automakers have captured significant market share through competitive pricing, local partnerships, and financing options. In Uruguay, BYD ranks as the third-largest seller of all vehicles, trailing only Chevrolet and Hyundai, with market share more than doubling since 2023 to 22%.

Across South America, Chinese EVs are leveraging regional distribution hubs:

• Peru: Chancay port distributes vehicles to Chile, Ecuador, and Colombia.
• Brazil: BYD and GWM are establishing local assembly plants to navigate tariff barriers and eventually export to neighboring countries through Mercosur trade agreements.

Challenges Remain

Despite growing adoption, EV penetration still faces obstacles:

• Sparse charging infrastructure across long distances.
• Regulatory hurdles and tariffs in some countries.

Nonetheless, the lower running costs of electric cars and the expanding Chinese EV ecosystem are attracting more buyers. “The car costs less to run and never needs to go to the service garage,” Zwiebach said.

South America is fast becoming a key growth region for EVs, driven by affordability, strategic port infrastructure, and Chinese automakers’ aggressive market expansion — all in the absence of Tesla showrooms.