Electric vehicle (EV) adoption is accelerating across South America, and notably, the trend is unfolding largely without Tesla’s presence in many markets.
In 2019, Peruvian renewable energy entrepreneur Luis Zwiebach traveled to California to test-drive a Tesla Model 3, since the brand had no official importer in Peru and local import laws were complicated. Determined to own one, he bought a used Model 3 from a private seller in Peru. Charging the car was initially tricky—at one point he improvised a grounding solution using a metal fork to get electricity flowing at a friend’s beach house.
Today, buying an EV in Peru is significantly easier. While Tesla still has no showroom there, the market has been flooded with affordable Chinese brands like BYD, Geely, and GWM, which sell at roughly 60% of Tesla’s prices. Established automakers such as Toyota, Kia, and Hyundai have also grown their EV offerings.
Tesla did not comment when asked.
Chinese automakers have expanded rapidly throughout South America, using the newly opened Chinese-built Port of Chancay—which has cut shipping times across the Pacific in half—to accelerate distribution. As Chinese EVs face tougher trade barriers in the U.S. and Europe, South America has become a key growth market.
In Peru, EVs still represent a small share of the 135,394 new vehicles sold in the first nine months of 2025, but sales of hybrids and full EVs have climbed sharply—rising 44% year over year to 7,256 units.
BYD, which manufactures EVs, hybrids, and fuel vehicles, plans to open a fourth Lima dealership this year. Altogether, brands like Chery and Geely now operate more than a dozen dealerships across the country.
Zwiebach says EV popularity is boosting his own clean-energy business, prompting him to expand offerings such as home and commercial EV charging stations, solar panels, and energy-efficient elevator systems.
Some property developers now insist on EV chargers as a selling point—including for high-value penthouses.
China’s EV Success Across the Region
Chinese carmakers, facing a domestic price war and excess production, are exporting large volumes to emerging markets like South America. According to automotive analyst Felipe Munoz (JATO Dynamics), China is shipping its surplus to Latin America, Central Asia, and the Middle East, where demand for affordable EVs is rising.
Industry leaders say Chinese brands have already proven they meet global quality standards.
In the first quarter of the year:
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Chinese brands held 29.6% of all new car sales in Chile.
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EV market share reached record highs:
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10.6% in Chile (September)
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9.4% in Brazil (August)
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28% in Uruguay (Q3)
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Across Latin America, EV market penetration doubled in 2024 to around 4%, according to the International Energy Agency, driven by incentives and low-cost Chinese imports.
In Uruguay, BYD has become the third-largest vehicle seller overall—behind only Chevrolet and Hyundai. Chinese brands now account for 22% of the national market.
Dealers credit the boom to competitive pricing, partnerships with local banks, and expanding dealership networks. In Uruguay, some BYD models start at $19,000, making them attractive alternatives to more expensive Japanese or European brands.
Chancay Port: China’s Gateway into the Continent
In Peru’s new Chancay megaport—built under China’s Belt and Road Initiative—massive shipments of Chinese vehicles arrive regularly. Each vessel carries 800–1,200 cars, and around 19,000 vehicles are expected to pass through the port by year’s end.
Cars arriving in Chancay are then shipped throughout South America, including Chile, Ecuador, and Colombia, making Peru a vital distribution hub for Chinese automakers.
In July alone, Peruvian customs recorded 3,057 cars arriving at the port, compared to 839 in January.
China’s Growing Auto Investments in Brazil
While Peru has little domestic auto manufacturing, Brazil has expressed concern over Chinese imports. China’s BYD and Great Wall Motors are responding by setting up factories:
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BYD began EV assembly in Bahia in October.
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GWM started partial production at a former Mercedes-Benz facility in August.
These factories could eventually export EVs across South America, leveraging trade agreements with Mexico, Chile, and Mercosur.
Brazil is also reintroducing EV tariffs that will rise to 35% by July 2026, pushing Chinese automakers to localize production.
Challenges Remain
Despite the momentum, South American EV adoption still faces obstacles—including long travel distances and inconsistent charging infrastructure.
Travelling Peru’s entire coastline, for example, remains difficult due to limited charging points. Still, Zwiebach notes that EVs cost less to operate and require far less maintenance than combustion vehicles.
