In 2019, Peruvian green energy entrepreneur Luis Zwiebach went to great lengths to buy an electric car. With no official Tesla presence in Peru and a maze of import regulations, he traveled nearly 4,000 miles to California just to test-drive a Model 3. After returning to Lima, he searched for alternatives and eventually found a private owner who had managed to import one himself. That became his ticket into the world of electric mobility.
But the hurdles continued. His first attempt to charge the car—at a beach house outside Lima—failed because the electrical setup lacked proper grounding. Improvisation and creativity eventually solved the problem, a reflection of how underdeveloped Peru’s EV infrastructure was just a few years ago.
A Rapidly Changing Market
Today, buying an electric vehicle in Peru is far easier. Tesla still has no official showroom or importer, but the absence of premium American models has opened the door for dozens of Chinese manufacturers. Brands such as BYD, Geely, GWM, and Chery now dominate the space, offering EVs at significantly lower prices—often around 60% of the cost of a Tesla.
Traditional automakers like Toyota, Kia and Hyundai have also expanded their hybrid and electric offerings, but it is the flood of affordable Chinese imports that has reshaped Peru’s EV landscape.
According to Peru’s automotive association, hybrid and electric vehicle sales hit a record 7,256 units in the first nine months of 2024, a 44% jump compared to the previous year. Though EVs represent only a fraction of total new vehicle sales, their growth trajectory is undeniable.
Chancay Port: A Strategic Gateway
A major catalyst behind this surge is the opening of the Port of Chancay, a massive China-backed megaport north of Lima. Since becoming operational in 2023, the port has drastically cut shipping times between China and South America. This has come at a moment when Chinese manufacturers are facing tighter trade restrictions in the U.S. and Europe, encouraging them to aggressively expand into Latin American markets.
Dealership networks are rapidly growing. BYD plans to add a fourth showroom in Lima by year-end, while Chery and Geely have collectively established more than a dozen locations across the country. Zwiebach notes that enthusiasm for EVs is rising steadily, with multiple new electric cars sold in Peru every day.
A Boost for Local Renewable Businesses
The wave of adoption has inspired Peruvian entrepreneurs to evolve alongside the trend. Zwiebach has now expanded his renewable energy company to include EV charger installation services. His team supports major clients in Lima and Arequipa — from universities to shopping centers — and he has even worked with developers who consider in-home EV chargers a selling point for luxury properties.
Why Chinese Cars Are Gaining Ground
China’s dominance stems partly from a domestic price war that has led to overproduction. Manufacturers are shipping excess inventory to emerging markets, including South America, where demand is rising and competition is less intense.
Analysts observe that Chinese brands have successfully carved out a niche by offering affordability without sacrificing quality. In Chile, for instance, Chinese vehicles made up nearly 30% of all new passenger car sales in the first quarter of 2024. Industry leaders there say Chinese manufacturers have demonstrated that they can compete on performance and reliability.
Latin America’s EV Uptake Intensifies
The International Energy Agency reports that EV adoption across Latin America—covering Mexico, Central America, and South America—doubled in 2024 to around 4%. Local incentives and the availability of affordable Chinese models are pushing that number higher.
Recent data show record EV market shares in several countries:
- 10.6% in Chile (September)
- 9.4% in Brazil (August)
- 28% in Uruguay (Q3)
Even Argentina, a country grappling with inflation and heavy import restrictions, has seen its EV market expand. BYD formally launched its operations there this year after establishing dominance in nearby Brazil, Colombia and Ecuador.
Uruguay: A Case Study in Market Transformation
The shift is particularly visible in Uruguay, where BYD is now the third-largest vehicle seller, trailing only Chevrolet and Hyundai. Chinese brands as a whole command roughly 22% of the Uruguayan auto market.
Dealers in the upscale resort town of Punta del Este report that Chinese EVs have become increasingly appealing due to their affordability and solid financing partnerships with local banks. Entry-level BEVs from BYD start at around $19,000, making them one of the most accessible options in the region.
Chancay’s Role as a Regional Distribution Hub
Peru’s megaport is quickly becoming a logistics hub for Chinese automakers across South America. Cosco Shipping, which operates the facility, has reported arrivals of up to 1,200 Chinese vehicles per ship, and expects around 19,000 cars to pass through the port by the end of this year.
Many of these vehicles are re-exported to Chile, Ecuador, and Colombia, strengthening the region’s supply chains for EVs and hybrid vehicles.
Brazil, the region’s largest automotive market, is taking a dual approach. Chinese companies such as BYD and Great Wall Motors have begun investing in assembly plants to benefit from tariff advantages and supply regional markets. But at the same time, industry groups are urging the government to slow the influx of imported EVs to protect local jobs. As a result, Brazil has begun reinstating higher import duties, which will return to 35% by July 2026.
