Although Tesla still doesn’t have a showroom in Peru, established automakers like Toyota, Kia, and Hyundai, as well as Chinese automakers BYD, Geely, and GWM, have inundated the market with EVs that cost about 60% of a Tesla.
According to Reuters, Peruvian green energy entrepreneur Luis Zwiebach had to take a 4,000-mile trip to California to test drive a Tesla Model 3.
Peru has no importers for Tesla, and the country’s complicated car-entry regulations provided no easy way to buy. Eventually, Zwiebach discovered a privately imported Tesla for sale at home.
It also proved to be difficult to charge the car. The Tesla refused to charge at a friend’s beach property outside of Lima because it was not grounded. “We grabbed a fork, stuck it into the soil to make a ground, and the car charged,” Zwiebach said, making do.
Chinese automakers accelerate across the continent
Chinese companies are using both combustion and electric models to quickly increase their market share in South America.
According to the national automobile association, hybrid and electric sales hit a record 7,256 units in the first nine months of the year, a 44% annual increase, even if EVs still make up a small portion of Peru’s 135,394 new car sales.
The construction of the Chinese-built Port of Chancay, north of Lima, last year, which reduced trans-Pacific shipping schedules, gave the change impetus.
South America has emerged as a key export market as Chinese producers encounter growing obstacles in the US and Europe.
BYD, which produces EVs, hybrids and gas-powered automobiles, wants to add a fourth showroom in Lima this year. Together, Chery and Geely currently run more than a dozen dealerships around the nation.
According to Zwiebach, EV sales in Peru currently surpass two per day, which led him to grow his renewable energy company into solar panels, EV charger installations, and regenerative elevators for developers, colleges, and retail establishments.
“You just plug it in at home, like a phone,” said a real estate developer, who would only purchase a penthouse if it had a charger.
Regional records and China’s rising market share
EV penetration in Latin America was more than twice what it had been last year, at about 4%, supported by governments latching onto the new technology to stimulate international investments and more affordable models from China becoming available.
It came with new record high EV market shares: 10.6% in September in Chile, 9.4% in August in Brazil, and 28% in the third quarter in Uruguay.
The Chinese brands are taking a massive part of the territory. Here, they accounted for 29.6% of all new passenger-car sales in the first quarter.
Meanwhile, BYD has now become the No. 3 seller in total vehicles in Uruguay (behind Chevrolet and Hyundai), and China’s combined market share has more than doubled to 22% since 2023.
Competitiveness, according to dealers, stems from competitive pricing, collaborations with domestic banks on financing, and locally preferred models.
BYD battery-electric vehicles are priced from US$19,000 in Uruguay. “(My) Chinese customer can buy three Chinese pick-ups, for the price of two traditional brands,” local dealer Federico Guarino said.
Chancay becomes a regional export hub
According to Reuters, where there once existed a string of seaside restaurants in Chancay, now only endless rows of white sedans and piles of containers remain.
Cosco Shipping, which operates the port, said ships come carrying 800 to 1,200 cars each, and that 19,000 Chinese cars are expected to come in this year.
Already, Chancay has started re-exporting vehicles to Chile, where Chinese brands controlled 33% of the market in July, as well as Ecuador and Colombia. Chery is making use of the corridor to speed up deliveries throughout the continent.
Customs data for Peru shows 3,057 cars at Chancay in July alone, and 839 in January.
Brazil pushes back as Chinese firms expand
Tension has been raised by China’s growth in other parts of South America. Industry and labour organisations in Brazil contend that rather than investing in domestic production, Chinese automakers are taking advantage of the momentarily low EV tariffs to increase imports.
Duties have been reinstated by the government and will increase to 35% by July 2026.
A few Chinese companies are expanding their local operations. While Great Wall Motors started partial production at a converted Mercedes-Benz factory, BYD started assembling EVs in October at a former Ford site in Bahia.
GWM anticipates that Brazilian exports will start by 2027, if not sooner.
Charging gaps remain a challenge
Long-distance EV travel is still restricted by infrastructure shortages, despite growing sales. “It’s challenging to travel the entire Peruvian coast from Tumbes to Tacna,” Zwiebach remarked.
However, he highlighted the long-term savings: the vehicles don’t need to be serviced and have lower operating costs.
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