Latin America’s electric vehicle (EV) market is accelerating, with seeing record sales figures. A total of 632,992 electrified vehicles were sold across the region, representing a 47.5% increase compared to , according to data from the Asociación Gremial de Concesionarios de Automotores of Colombia (Aconauto), a member of the Latin American Association of Automotive Distributors.
The growth confirms a rising consumer interest in sustainable options and solidifies Brazil and Mexico as the regional market leaders in both sales and charging infrastructure. The expansion is driven by a combination of fiscal incentives, a wider range of models, and a gradual reduction in technology costs. However, a key factor is increasing consumer confidence in the availability of charging infrastructure to meet growing demand.
Regional Sales Rankings
Brazil leads the ranking with 278,462 units sold between January and December , representing a 10.4% share of total vehicle sales. Mexico ranks second with 147,110 units and a 9.4% share, while Colombia holds third place with 87,677 units, achieving a 34.5% participation in sales.
Chile also demonstrated strong performance with 37,544 units and a growth rate of 92.3%. Uruguay sold 20,585 vehicles, leading the regional percentage growth with 107.2%. Guatemala recorded 7,181 units and an 85.2% increase, Paraguay 4,049 units with 65.7% growth, Ecuador 22,646 units with a 56.1% increase, Peru 10,239 vehicles with 54.1% more than the previous year, and Panama 3,441 units with a 27.9% increase. Costa Rica was the exception, with 14,058 units and a slight decrease of 0.4%.
Colombia: A Leader in EV Market Share
While Brazil and Mexico dominate in market size, Colombia stands out for the proportion of electrified vehicles in its total sales. In , electric and hybrid vehicles represented 34.5% of all sales in the country – the highest share among eleven Latin American markets analyzed.
In terms of units, Colombia ranks third regionally with 87,677 electrified vehicles sold. The country also recorded growth of nearly 69%, placing it fourth in that metric. This indicates a market that, while smaller than Brazil’s or Mexico’s, is advancing rapidly and demonstrating accelerated adoption of technologies with reduced reliance on traditional fuels.
Hybrid and Electric Segment Breakdown
Regional growth isn’t solely driven by battery electric vehicles. Non-plug-in hybrids dominated the market with 334,976 units sold in , a 54.5% increase and a 6.1% share of the overall market. Mexico led this segment, followed by Brazil and Colombia.
Plug-in hybrids registered 136,616 units, with a 50.7% increase and a 2.6% share between January and December . Brazil led this niche, followed by Mexico and Colombia.
Battery electric vehicles totaled 161,400 units, with a 32.7% increase and a 2.9% share of total sales. Brazil also led this segment, followed by Mexico and Colombia. The data reveals a two-speed transition, with hybrids maintaining a larger volume despite fully electric vehicles representing the symbol of energy transformation.
Charging Infrastructure: A Key to Latin American EV Market Growth
As of , Brazil leads the region in the number of public charging stations with 14,827 points installed. Mexico is second with 3,212 stations, followed by Chile with 1,133, Colombia with 300, and Uruguay with 202. The study highlights a significant gap, noting that “without a robust and reliable network, mass adoption could slow down.”
For the industry, charging infrastructure is a critical factor. The availability of fast charging and stable electricity supply are as important as the quantity of stations. Brazil’s leadership in public stations helps reduce range anxiety, a major deterrent for potential buyers.
Tax Policy and Revenue: The Debate in Colombia
Despite strong sales and market share, Aconauto questioned the national government’s tax policy. The association pointed out that while countries like Argentina promote the automotive market through tax reductions, the Colombian government “is determined to tax it” after failing to meet revenue targets in the last three years.
Concessionaires hope the next government will understand that markets grow by reducing tax barriers, allowing increased volume to drive revenue.
the regional picture shows Brazil maintaining leadership in volume and industry size, Mexico playing a strategic role in the value chain, and Colombia excelling in the proportion of market share already achieved by these technologies within its domestic market.
