Even if Tesla mostly stays absent from the South American market, electric vehicle (EV) adoption is exploding. More affordable Chinese brands are propelling the EV revolution here instead of the American automaker.
According to the automotive association of Peru, for instance, EV and hybrid sales hit 7,256 cars in the first nine months of the year, a dramatic 44 per cent increase above the same period last year.
Though Tesla is absent, there is no official showroom in Lima; brands like BYD, Geely, and Great Wall Motor (GWM) have established a great presence. These Chinese cars are priced at around 60% of the cost of a Tesla locally.
Built with Chinese support, the Port of Chancay, north of Lima, is a major enabling factor for this growth. The port has substantially reduced trans-Pacific travel times, therefore enabling the economical transport of electric cars over the ocean at volume.
While other companies like Chery and Geely run more than a dozen sales locations across Peru, BYD In. is already making preparations to launch a fourth dealership in Lima by year-end.
This growing footprint goes beyond only Peru. According to local industry groups, EVs account for 10.6% of new automobile registrations in Chile; Brazil and Uruguay have recorded 9.4% and a remarkable 28%, respectively, all-time highs.
Notably in Uruguay, BYD has risen to become the third-biggest car manufacturer overall, behind only GM and Hyundai.
Collaboration with regional importers who provide competitive finance, credit lines, and specialized models has helped to confirm the increasing visibility of Chinese car manufacturers. Also in the previous month, Huawei-Powered Chinese EV maker Seres Revs up for US$1.7 billion IPO.
However, there are still difficulties, such as charging facilities being quite scarce, particularly in remote areas. Peruvian businessman Luis Zwiebach notes that logistical difficulties in the country persist in long-distance travel. Still, Chinese EVs are turning things in their favor, the credit for which goes to the good economics of lower vehicle price, expanding infrastructure and cheaper operating expenses.
