The International Energy Agency's recently released 'Global Electric Vehicle Outlook to 2025' report notes that emerging markets such as Asia and South America are becoming the growth centers for electric vehicle sales, with total sales increasing by over 60% year-on-year in 2024. According to the latest data released by the Latin American Automobile Dealers Association, electric vehicle sales in Latin America will reach 412,493 units in 2024, with pure electric vehicle sales increasing by 139.3% and plug-in hybrid vehicle sales increasing by 156.1%. 51% of new vehicles sold are Chinese brands, and almost all electric buses are from China.

Currently, China-Latin America cooperation is moving towards diversification of trade and investment structures, with the new energy vehicle industry becoming a key growth point for expanding economic and trade cooperation between the two countries. With its comprehensive industrial chain, reliable product quality, and technological innovation, Chinese new energy vehicles are gradually gaining a foothold in the Latin American auto market. This is a microcosm of the deepening economic and trade cooperation between China and Latin America and will contribute to Latin America's green and low-carbon transition.

Chinese brand recognition is increasing year by year.

A Chery new energy vehicle showroom in the Baja district of Rio de Janeiro, Brazil, is bustling with customers. Perez, a local resident, told reporters that he decided to buy a Chery new energy vehicle. 'I chose Chery mainly because it's cost-effective and offers good energy-saving and environmental performance. Chinese new energy vehicles are reliable in quality, and they now offer charging station installation services, which is very convenient.'

As the largest auto market in Latin America and the sixth largest globally, Brazil has seen rapid growth in new energy vehicle sales in recent years. According to data from the Brazilian Electric Vehicle Association, in the first half of 2024, Chinese-branded new energy vehicles accounted for 91.4% of all new energy vehicle imports in Brazil, generating $1.2 billion in sales.

Recognition of Chinese new energy vehicles in Latin American countries like Mexico and Costa Rica has also been growing year by year. Data released in January by the Mexican National Institute of Statistics and the Association of Automobile Dealers indicated that Chinese auto brands such as JAC and Geely were expected to sell 129,329 vehicles in Mexico in 2024, a year-on-year increase of 63%, securing a 19.5% market share. The latest report from the Latin American Energy Organization shows that Costa Rica has the highest per capita electric vehicle ownership in Latin America, with 34.3 electric vehicles per 10,000 people. Six of the country's top 10 best-selling electric vehicle models are Chinese brands.

Bloomberg New Energy Finance analysis suggests that the accelerated adoption of new energy vehicles in Latin America is driven by the introduction of tax incentives, the continuous improvement of charging infrastructure, and growing consumer awareness of environmental protection. It is predicted that by 2028, new energy vehicles will account for 10%-20% of new passenger car sales in Latin America. ECLAC economist Herreros is optimistic about the sales prospects of Chinese new energy vehicles, saying, 'Chinese new energy vehicles offer Latin American consumers a diverse range of models, offer high overall cost-effectiveness, offer comprehensive after-sales service, and are gaining increasing popularity. This creates enormous potential for sales growth.'

Promoting the Electrification of Public Transportation Systems

In recent years, an increasing number of people in Latin America have been traveling by Chinese-branded electric buses. It is estimated that there are currently over 6,000 electric buses in operation in Latin America, including brands such as BYD, Yutong Bus, Zhongtong Bus, and Beiqi Foton.

At the end of 2021, the city of São José dos Campos in São Paulo State, Brazil, launched Brazil's first dedicated all-electric bus route, the 'Green Line.' Each bus features a prominent green sign proclaiming '100% Electric' on its window. These buses are manufactured by the Chinese brand BYD. BYD, in partnership with the São José dos Campos City Government, is responsible for the production of the 12 Green Line buses.

In Santiago, the capital of Chile, Chinese-branded electric buses are already operating on a large scale, providing the city with a low-carbon, environmentally friendly, efficient, and convenient public transportation solution.

In major cities such as Bogotá and Medellín in Colombia, Chinese-branded electric taxis are rapidly gaining popularity. Former Bogotá Mayor Lopez stated that the city has put into operation over a thousand Chinese-made electric buses, which can reduce carbon dioxide emissions by nearly 100,000 tons annually and promote the green transformation of urban transportation.

BYD Auto announced in 2024 that it had successfully delivered 100 pure electric buses to Uruguay's largest electric bus operator. These 12-meter-long buses incorporate environmentally friendly, energy-saving, intelligent, and comfortable features, and are custom-designed for the Uruguayan market. Uruguay looks forward to deepening cooperation with BYD and accelerating the full electrification of its public transportation system.

Diego Mendoza, Secretary General of the Chilean National Automobile Association, believes that Latin American countries have become important markets for Chinese electric bus exports. Chinese electric buses are safe and comfortable to ride, making significant contributions to transport modernization and commuting in the region, and contributing to carbon reduction solutions for the local logistics industry.

Localization Strategy Promotes Win-Win Cooperation

Industry insiders believe that Chinese automakers attach great importance to local production cooperation, actively promote industrial technological innovation, and contribute to the mutually beneficial development of the local new energy vehicle industry. This is a key reason for the accelerated entry of Chinese new energy vehicles into the Latin American market.

In October 2024, Great Wall Motors announced that it would build its first factory in São Paulo, Brazil, with production expected to begin in July 2025. Shi Qingke, President of Great Wall International, explained that the factory will promote the sustainable development of Brazil's new energy industry, while also driving local employment growth and economic prosperity, and providing users with a greener and more convenient travel experience. In the future, Great Wall will work with local Brazilian institutions to develop training programs to cultivate local technical talent and gradually transfer parts production processes currently conducted in China to São Paulo. The company aims to achieve 60% localized auto parts manufacturing in Brazil within three years and export to other Latin American countries.

In August 2024, MG Motor, a subsidiary of SAIC Motor, announced plans to establish a manufacturing plant and R&D center in Mexico, establishing the country as a market hub for Latin America. Zhang Wei, head of MG Motor Mexico, stated that the factory will serve the entire Latin American market. By the end of 2024, BYD had sold 40,000 electric and hybrid vehicles in Mexico, with 50 dealerships in the country. BYD aims to sell 80,000 vehicles in Mexico by 2025. BYD Mexico General Manager Vallejo stated that the automaker plans to establish a manufacturing plant in Mexico, which is expected to create approximately 10,000 jobs, making it one of the largest factories in the country.

China has established Latin America's first Luban Workshop in Peru, dedicated to cultivating technical talent in the new energy vehicle sector and creating broader opportunities for cooperation between the two countries in the green industry. During his visit to China last year, the Peruvian president strongly invited BYD to invest and establish a factory in Peru. Peruvian Ambassador to China Balarezo stated that China is a global leader in new energy vehicles and has accumulated rich experience. 'We look forward to in-depth cooperation with China in areas such as charging infrastructure construction and lithium battery development.'

Bastos, President of the Brazilian Electric Vehicle Association, believes that the localized production strategy adopted by Chinese new energy vehicle companies is a wise one. Strengthening cooperation with local automakers will help better understand Latin American market needs, quickly adapt to local market changes, and provide consumers with diverse solutions.

Lou Xiangfei, associate researcher at the Latin American Research Center of the Shanghai Institutes for International Studies, told this reporter that the popularity of Chinese new energy vehicles in the Latin American market reflects the upgrading of China-Latin America economic and trade cooperation. Latin American countries hope to reshape their production models and promote sustainable economic development by promoting green transformation. Chinese automakers are not only bringing green mobility tools to the Latin American market but also introducing China's advanced new energy vehicle industry chain and innovative technologies to the region. This will effectively promote the transformation and upgrading of the Latin American auto industry, expand employment, and achieve mutual benefit and win-win results.