Chinese brands drive South America’s EV growth as Tesla lags in the region

Electric vehicle (EV) sales are rising fast across South America, and China takes the front lead as buyers turn to cheaper and more available models.

Tesla still has no showroom in Peru, but Chinese automakers now sell EVs at about 60% of Tesla’s price, giving them a major edge in a region where cost matters. “The electric car is doing very well here,” said Peruvian entrepreneur Luis Zwiebach, who bought his first Tesla in 2019 after struggling to import it. “More than two new cars are sold every day.”

Chinese brands are expanding as governments push for cleaner transport, and shipping routes get faster. Peru’s new Chancay megaport, built under China’s Belt and Road Initiative, has cut Pacific shipping times in half. Cosco Shipping says it expects 19,000 Chinese vehicles to arrive through the port this year.

Peruvian customs data shows 3,057 cars arrived in July alone, up from 839 in January, revealing how quickly the market is shifting. EV sales remain a small share of Peru’s 135,394 cars sold in the first nine months of 2025. But hybrid and electric models reached 7,256 units, a 44% annual jump, signalling rising trust in the technology.

In Chile, Chinese brands now hold 29.6% of passenger car sales. Uruguay saw EV market share hit 28%, one of the region’s highest levels. “The Chinese have carved out space,” said Martin Bresciani, head of Chile’s automotive chamber. “They match global standards in quality.”

Across the region, Chinese automakers are filling a gap left by price-sensitive customers and weak legacy supply chains. In Uruguay, dealers now list Chinese EVs starting at $19,000, pulling in new buyers who see value and low running costs. “I can buy three Chinese pick-ups for the price of two traditional brands,” said Uruguayan dealer Federico Guarino. To boost sales, Chinese firms also partner with local banks to offer credit deals.

China’s push is driven by a domestic price war and a surplus of new cars. Many of these vehicles are now headed to Latin America as China faces rising trade barriers in the U.S. and Europe. The Chancay port is already serving as a launchpad for shipments to Chile, Ecuador and Colombia. Cosco completed its first vehicle trans-shipment in September, moving 250 cars to Chile, where Chinese brands held 33% of the market in July.

Brazil is becoming a second gateway as Chinese firms build or repurpose plants there. BYD began assembling EVs in October at a former Ford factory, while Great Wall Motors launched partial production at an old Mercedes-Benz site. GWM expects to start exporting cars from Brazil by 2027, taking advantage of Mercosur and Mexico trade deals. But tensions are rising as local unions warn that China is importing too many cars instead of creating factories and jobs. Brazil has restored EV import tariffs, which will reach 35% by mid-2026.

Still, Chinese brands continue to gain ground. BYD leads EV sales in Brazil, Colombia, Ecuador and Uruguay. Even in Argentina, where the economy is fragile and trade barriers are high, the company launched sales this year. “We could see Argentina reach Brazil’s EV adoption levels,” said BYD Argentina country manager Stephen Deng.

Some barriers remain. Charging networks are uneven, and long travel distances make EV use harder outside big cities. “If you want to travel the Peruvian coast, it’s difficult,” Zwiebach said. But he insists that lower running costs and simple home charging give EVs a strong advantage. “You just plug it in like a phone,” he said.

The surge of Chinese EVs marks a major power shift in South America’s auto market. Local buyers want cleaner, cheaper, and easy-to-maintain vehicles. And China is ready to supply them fast.

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