Latin America EV Sales Report, Part 3: Leaders on the Podium (Colombia, Uruguay, Costa Rica)

Join daily news updates from CleanTechnica on electronic mail. Or follow us on Google News!

---

And so we get to the final a part of our report, relating to the three international locations main the area in EV gross sales. This podium has been steady for years, however, if the scenario in January is to final, vital adjustments may very well be upon us. Nonetheless, so far as 2023 goes, these had been nonetheless the main international locations within the area.

For those who want to learn the earlier components of this report, you are able to do so right here:

Latin America 2023 EV Sales Report, Part 1: The Laggards (Argentina, Perú, Ecuador, Chile, Dominican Republic)

Latin America 2023 EV Sales Report, Part 2: The Promising Middle (Mexico, Panama, Brazil, Puerto Rico)

#3. Colombia (2.9% plug-in automobile market share) 

Third in our rating is Colombia, a rustic with a comparatively small automobile market in comparison with its inhabitants. Regardless of being the third most populous nation in Latin America (behind Brazil and Mexico), it’s solely the fifth greatest automotive market within the area, with 186,826 mild and heavy autos being bought in 2023. Of those, 3,718 had been BEVs (2%) and 1,799 had been PHEVs (0.9%).

The Colombian EV market is especially advanced to know: two elements skew the info so {that a} rising market seems to be practically stagnant. First, there’s the acquisition of over 1,500 electrical buses, most of which had been delivered in H2 2021 and H1 2022. As soon as the final of these had been delivered in July 2022, progress grew to become extra clearly seen.

And second, there’s the truth that the Colombian automobile market is in freefall. An ideal storm of excessive rates of interest, low financial progress, and big devaluation (the latter having subsided in late 2023) triggered whole automobile gross sales to break down, falling 30% in 2023. Which means comparatively gradual EV progress grew to become comparatively bigger proportionally.  

In recent times, the market has gravitated in direction of 30% PHEV and 70% BEV, with PHEVs gaining extra traction since BYD introduced its DM-i line into the nation. Because the general market is falling, market share has really elevated by fairly a bit greater than whole gross sales.  

As we are able to see, the nation was not removed from reaching 5% plug-in autos in December, however the fee of progress (averaging 43% yearly within the final 4 years) appears disappointing. Colombia is sure to lose its place on the rostrum if it doesn’t velocity up in 2024. It’s value declaring that January is at all times a gradual month, and that 12 months on 12 months there was a 52% improve in EV gross sales between January 2024 and January 2023. 

So far as the EV market goes, the Chinese language as soon as once more dominate, with all the podium and 6 out of the ten most bought fashions being from this nation, three being from Europe (counting Volvo as European), and, surprisingly, one being Japanese.

Incentives for EVs stay (decrease taxes, no VAT, no tariffs), however the single most vital motion that the Colombian authorities may take to advertise them could be to assessment the advantages hybrids obtain. Massive Colombian cities, and Bogota specifically, have very strict restrictions for the transit of ICE fashions, however to this point, hybrids (and even delicate hybrids) have had the identical advantages as PHEVs and BEVs. If these are eliminated, and solely true EVs stay exempt, gross sales may get a big increase.

Both that or a big worth discount that brings EVs nearer to cost parity with ICEVs. A number of manufacturers have introduced worth cuts in the previous few weeks, together with JAC, Renault, JMC, and Seres. Nonetheless, the discount continues to be small, and the nation is in dire want of extra inexpensive costs if EVs need to have any hope of turning into mainstream. Nice Wall Motor, and particularly the ORA 03, has already landed in a number of international locations within the area at aggressive costs … do they need to begin a worth conflict in Colombia? 

In any case, the value cuts had been introduced in late January, so we gained’t know the results till the top of February. 

#2. Uruguay (3% BEV market share) 

Second in our record is Uruguay, a market that has grown steadily at charges just like Mexico, however ranging from the next base. Uruguay additionally has one of many cleanest sources of electrical energy within the area, so the influence EVs make on carbon emissions is greater there. In 2024, a complete of 60,478 mild and heavy autos had been bought, 1,799 of which had been BEVs, for 3% market share! 

Now, pricey readers, consider it or not, I needed to work fairly a bit to get this quantity, as a result of, get this: Nissan did it once more! Identical to in Ecuador, it managed to go its hybrid X-Path off as a BEV! Although, fortunately, the mannequin bought fewer than 100 models, so the info was not that skewed. It’s unbelievable that two international locations have fallen for a similar trick.

Uruguay has a really complete charging community and important advantages from EVs. It additionally has a really aggressive market the place, in accordance with native media, common EV costs went down by 11% between 2022 and 2023, making them extra inexpensive for individuals. The federal government can also be offering incentives for taxis: 100 of them got in 2023, however there’s no info on what number of are deliberate for 2023.

Mannequin-wise, the rating is as soon as once more Chinese language dominated, with 7 out of 10 fashions being from that nation.

Most spectacular of all, when wanting on the most bought manufacturers, BYD completely crushes the competitors, getting 53% of the entire market: 

1. BYD: 951
2. JAC: 219
3. BMW: 148
4. Maxus: 76
5. Volvo: 63 

Uruguay additionally began 2024 with a robust footing, with BEV gross sales rising to 144 models out of 4,166 whole gross sales, or 3.4% market share. That’s already forward of 2023’s outcome. This additionally appears like a promising 12 months for the Gaucho Nation! 

#1. Costa Rica (11.6% BEV market share) 

We end our raking with Costa Rica, a rustic that’s bolted forward of each different one on the continent! Regardless of how far Brazil, Uruguay, or Colombia develop within the subsequent couple of years, it’s exhausting to see them surpassing this small champion.

Costa Rica was already forward of the area in 2019, however progress in later years was not significantly excessive (25% in 2020, 46% in 2021, 41% in 2022). Nonetheless, issues sped up dramatically in 2023, with 204% progress 12 months on 12 months! And to this point in 2024 issues are additionally wanting shiny, as Costa Rica bought 96% extra EVs final month than in January 2023, making it the best-selling EV month within the nation’s historical past! 

Hybrids — together with mild hybrids and PHEVs — comprise lower than 3% of gross sales within the nation, to allow them to be safely discounted. This is without doubt one of the purest BEV markets there’s, and the purest one I learn about.

Market share is tougher to calculate. Costa Rica’s official information presents EVs bought and registered by month (which is the info offered within the graph above), however the whole autos registered aren’t obtainable. Yearly imports can be found as a substitute, however these have a couple of months of mismatch with registrations, and BEVs could be underrepresented if measured that method. 

The answer is to work with EV imports (current in a local blog from Ale Montero), a few of that are nonetheless sitting on sellers’ heaps and gained’t be bought for a pair extra months (and, as such, don’t seem within the chart above). 6,312 BEVs had been imported in Costa Rica in 2023, which comprise 11.6% of the 54,554 autos imported in these years. This consists of mild and heavy autos.  

Mannequin smart, as soon as once more we’ve got important presence from the Chinese language, however on this case, 4 European fashions managed to make it into the highest 10:

Costa Rica presents hope for European producers: as probably the most developed EV market within the area, it has important presence of European fashions, and it appears to be the primary nation the place the ID.4 has made a touchdown.  

Model-wise, we’ve got a way more aggressive panorama than in Uruguay (the place BYD stood alone on the high), and even one European producer within the high 5! 

1. BYD: 1,183 models
2. Geely: 984 models
3. BMW: 440 models
4. JAC: 386 models
5. MG: 382 models

If January is to be an indicator, 2024 can even convey nice progress to Costa Rica’s EV market, but it surely’s exhausting to foretell the place it would finish. One can hope for 25% market share, however I really feel someplace round 17% is extra believable. Time will inform!

And so, we end our report for Latin America in 2023. As I mentioned firstly, this would be the final of such stories. Sooner or later, I’ll report extra typically about international locations the place the market growth is quicker and go away a mixed article for the laggards the place there isn’t a lot information … for now.

Regardless, I hope you loved it!