Chinese automobile manufacturers are expanding their presence in South America with traditional and electric models. Although electric cars still represent a small fraction of the market, their growth is steady.
In Peru, between January and September 2025, 135,394 new cars were sold, of which 7,256 were hybrids and electrics, a record marking a 44% increase compared to the previous year, according to the local automotive association.
The Port of Chancay: A New Regional Logistics Hub
The opening of the megaport of Chancay, north of Lima, has been key to this progress. Built under China’s Belt and Road Initiative, it halved transpacific shipping times.
This logistics corridor allows brands like BYD, Chery, and Geely to accelerate their deliveries throughout the region. In September, Cosco Shipping made its first transshipment of 250 cars to Chile, where Chinese brands already controlled 33% of the total automotive market. New shipments were also sent to Ecuador and Colombia, establishing Peru as a regional distribution hub.
BYD and Leadership in Electromobility
The manufacturer BYD, a global leader in electric vehicles, plug-in hybrids, and combustion vehicles, plans to open a fourth dealership in Lima before the end of the year. The company already dominates electric sales in Brazil, Colombia, Ecuador, and Uruguay, and in October, it landed for the first time in Argentina, despite the country’s economic and trade challenges.
In Uruguay, BYD became the third-largest seller of vehicles of all types, only behind Chevrolet and Hyundai. The market share of Chinese brands has doubled since 2023 and reaches 22%, with competitive prices starting at US$ 19,000 for battery electric vehicle (BEV) models.
Regional Growth of Electric Vehicles
The penetration of electric vehicles in Latin America doubled in 2024, reaching nearly 4%, according to the International Energy Agency (IEA). The most recent figures show record shares:
- Chile: 10.6% of new cars registered in September.
- Brazil: 9.4% in August.
- Uruguay: 28% in the third quarter.
In comparison, Europe and China recorded more than half of new electric cars (56% and 51%), while Japan and the United States lag behind (2% and 10%).
Brazil: Local Production and Trade Tensions
Brazil has become a strategic market. BYD began assembling electric vehicles in October at the former Ford plant in Bahia, while Great Wall Motors (GWM) started partial production at a refurbished Mercedes-Benz plant.
However, the country also imports large volumes: at the beginning of 2025, the world’s largest car transport ship docked in Itajaí with 22,000 Chinese vehicles.
Brazilian industrial and union groups criticize that China takes advantage of temporary low tariff barriers to export electric vehicles without generating enough local employment. The government has already begun to reimpose tariffs, which will reach 35% in July 2026.
A Market in Transformation
The Chinese expansion in South America responds to an internal price war in China and a production surplus seeking new destinations. The strategy combines alliances with local importers, competitive prices, and financing through regional banks.
With the port of Chancay in Peru and investments in Brazil, Chinese manufacturers are shaping a new regional automotive map, where electromobility is gaining ground and consumers have access to more affordable models.
The presence of BYD, Chery, Geely, and GWM in South America reflects a structural change in the automotive market. With logistics hubs like Chancay and Vitória, and with growing shares in countries like Uruguay and Chile, China is positioning itself as a dominant player in the transition to electric mobility in the region.
