In a notable shift, electric vehicle (EV) sales across South America are accelerating rapidly — without Tesla holding a significant position. Chinese manufacturers such as BYD, Geely and GWM are stepping into the gap, offering models that cost up to 60 percent less than comparable Tesla models and aggressively expanding their footprint across the region.
Infrastructure and logistics align with market demand
Part of the surge is driven by improved logistics and infrastructure links between China and Latin America. A pivotal factor is the recently opened port of Port of Chancay in Peru, built under China’s Belt and Road initiative. The facility streamlines vehicle shipping and trans-shipment across South America, helping Chinese EVs reach markets such as Chile, Brazil, Uruguay and Argentina more rapidly.
Market growth and adoption data reveal the pace
While EVs still represent a modest portion of total vehicle sales in the region, the growth rates are striking. In Peru, hybrid and electric vehicle sales rose by 44 percent year-on-year through September 2025. In Chile and Uruguay, EV market shares of new car sales have reached approximately 10.6 percent and 28 percent respectively.
Tesla’s absence and the strategic implications
Tesla’s limited presence in South America is surprising given its global brand strength. The company faces regulatory hurdles, lack of local manufacturing or assembly, import barriers and pricing disadvantages against lower-cost Chinese alternatives. The resulting leadership vacuum has allowed Chinese brands to dominate and tailor their models to regional markets.
Broader implications for the auto and EV industry
The developments in South America signal a few key industry shifts. First, cost competitiveness matters hugely — a lower-priced EV that meets local infrastructure and charging realities can gain traction quickly. Second, logistical infrastructure such as ports and trade corridors matter just as much as vehicle specs. Third, strong growth in a region where Tesla is not dominant could challenge the assumption of Tesla’s global dominance in EVs.
What to watch next
Going forward, several factors merit attention: whether Chinese EV makers begin local assembly in Brazil and Argentina to avoid tariffs and local regulation; how EV charging infrastructure keeps up with adoption outside major cities; how local governments respond with incentives or protectionist policies; and how global OEMs respond to the shift in South-American dynamics.
Implications
For consumers in South America, the rise of more affordable EVs offers real pathways into electrified mobility that were previously limited. For industry players, the region becomes a strategic battleground where cost, logistics and regional adaptation matter more than global brand alone. For Tesla and other premium EV brands, the message is clear — dominance in one region does not guarantee success everywhere.
Source: Reuters
