And we’re again, with the final a part of our report on Latin America EV market share! In the event you haven’t learn the earlier articles, you may examine them out right here:
In right here, we’ll meet the market leaders, most of which have proven important development and could possibly be ripe for speedy disruption … plus a pacesetter that, to be sincere, completely surpassed my expectations. Let’s start!
#3. Colombia (3% plug-in market share)
Columbia’s EV market in 2023 might be essentially the most complicated to grasp in our total checklist. Within the face of it, the info would appear to level to a generalized stagnation of the market. Plug-in automobile gross sales have been dropping month after month, falling over 10% in H1. “Catastrophe!”, will scream the naysayers, having eventually the particular proof that their omens have been right, and EVs have been nothing however a fad, a brief increase based mostly upon governmental whims. Isn’t that the way it usually goes?
However what if I instructed you that the naysayers are mistaken, and the Colombian EV market is definitely booming?
Month-to-month Plug-in Gross sales in Colombia (Mild and Heavy Automobiles)
That is the crude information, and on the face of it, it might appear that the market is stagnant certainly. However this information is incomplete: Colombia’s 2022 numbers have been closely skewed as a result of buy of practically 1.500 buses, half of which arrived in H1. In distinction, solely 19 electrical buses arrived within the nation in H1 2023.
As soon as we take that into consideration, it seems that BEVs are rising at a wholesome 45% YoY fee. However PHEVs are nonetheless disappointing, with a 11% lower that brings the whole YoY development fee to simply 13%.
However wait! I assumed we stated the market was booming!
Sure, we did. As a result of, see, the buses are solely half the difficulty. Context issues, and Colombia’s financial context for H1 2022 has been plagued with runaway inflation (that has only recently been managed, however nonetheless stands over 10%), extreme forex devaluation (as soon as once more, already enhancing, however it hit laborious within the months prior), and really excessive rates of interest. All of those elements have brought about an enormous (and worsening) fall in car gross sales, 27% down YoY. And, on this context, plug-in market share has elevated from 2.1% final 12 months to three.1% up to now this 12 months. Sure, that is together with all of these buses.
Plug-in Market Share in Colombia (Mild and Heavy Automobiles)
Colombia’s EV market state of affairs can also be complicated. On one hand, the nation has been flooded with Chinese language fashions (and extra are coming in H2), the federal government is lastly chopping the gasoline and diesel subsidy, and cities have strict transit restrictions for ICE automobiles, which have significantly promoted EVs (and plug-less hybrids as nicely).
Alternatively, regardless that EVs are getting cheaper (and extra reasonably priced choices are arriving, such because the $17,300 Changan Lumin), native forex revaluation has additionally fueled value reductions in ICEVs, many instances in equal or bigger proportion than EVs. Forex revaluation has occurred so quick that many EVs with important value reductions are nonetheless dearer at present (in USD) that they have been a couple of months in the past. instance is the BYD Dolphin, which, regardless of a big value lower, is now dearer in USD than the day it arrived within the nation:
This could possibly be problematic for the EV market, as ICEVs are proving succesful to a minimum of preserve their USD value, therefore lowering costs greater than EVs. As in most international locations within the area, Colombia is in dire want of decrease costs, maybe even a value conflict that brings EV costs extra according to the remainder of the world.
Market composition skews in direction of BEVs: 1,630 have been offered in H1 as in contrast with 1,163 PHEVs. Given the 90,869 automobiles offered in complete in H1, this implies 1.9% market share for BEVs and 1.2% for PHEVs.
As in Chile’s case, 6 out of the highest 10 are Chinese language fashions:
#2. Uruguay (2.9% BEV market share)
In lots of senses, Uruguay is similar to Argentina. It has comparable tradition, comparable accent, shared historical past, and Montevideo is as near Buenos Aires as a metropolis will be whereas nonetheless current in a unique nation. But, in respect to EVs, they’re as far aside as two international locations will be, with Argentina being one of many greatest laggards and Uruguay being one of many undisputed leaders.
27,264 automobiles (each mild and heavy) have been offered in H1 2023. Of those, 784 have been BEVs, with a market share of two.87%. Sadly, Uruguay’s official information doesn’t embrace PHEVs, nor presents numbers in a month-to-month foundation, so we are able to solely present yearly numbers:
Yearly BEV Gross sales and Market Share in Uruguay (Mild and Heavy Automobiles)
Uruguay additionally has probably the most complete fast-charging networks within the area. Nevertheless, most of it’s based mostly upon AC Kind 2 chargers able to charging at 22 kW. Although not ideally suited, it’s a comparatively small nation, and little question many individuals will discover these comparatively gradual chargers to be sufficient to let go of vary anxiousness.
As for the market composition, as soon as once more, we meet the reign of the Chinese language: 8 out of the 11 most offered fashions come from a Chinese language producer.
Like the complete area, Uruguay suffers from extraordinarily excessive EV costs. Given the recognition of EVs, the federal government assist, and the excellent charging community, it wouldn’t shock me if as soon as they decrease their value, we’ll see large will increase in gross sales … however decrease costs are wanted.
#1. Costa Rica (11% BEV market share)
We end our report with Costa Rica, a rustic with an absurd lead over the remainder of the area, to the purpose that it truly leads the complete continent (presenting greater BEV market share than the US and Canada).
25,741 automobiles have been offered in Costa Rica in H1 2023. Of those, 2,783 have been BEVs, presenting an 11% BEV market share, a powerful quantity, and extra so for a rustic with center earnings standing. Furthermore, gross sales are rising at electrifying pace (pun meant), with a 171% enhance YoY up to now in 2023! Not solely is Costa Rica the chief, however it’s additionally bolting forward at a fee that makes it very tough for anybody to catch it within the medium time period.
BEV Month-to-month Gross sales in Costa Rica (Mild and Heavy Automobiles)
This spectacular efficiency is coming from a rustic the place BEVs aren’t significantly low cost (so far as we’ve seen, they’re as costly as they’re in Colombia and Mexico) and the place individuals aren’t significantly rich. It’s so spectacular that I’m unable to discover a affordable clarification: Costa Rica does have some particular perks for EVs (similar to decrease taxes, no tariffs, and free on-street parking), and it additionally has restrictions for ICEVs in the principle cities, however, truthfully, the distinction isn’t all that a lot from international locations like Uruguay, Chile, or Colombia. The nation additionally has a really complete fast-charging community, however Chile and Uruguay aren’t too far behind. And but, Costa Rica’s lead is so massive as to really feel unsurmountable. Do any of you’ve gotten an thought why this is likely to be the case?
Market composition, as soon as once more, proves the ability of the Chinese language producers: 6 out of the highest 10 are Chinese language.
Nevertheless, when wanting on the prime fashions offered, solely 5 are Chinese language. Maybe there’s nonetheless hope for the legacy automakers:
That’s all for at present, of us. With Costa Rica’s spectacular state of affairs, we end this report on Latin American EV market share. Hopefully, by the point we make the subsequent one, costs will likely be decrease, charging networks will likely be higher, information will likely be extra full, and EVs will likely be much more standard in each single considered one of these markets.
I do not like paywalls. You do not like paywalls. Who likes paywalls? Right here at CleanTechnica, we carried out a restricted paywall for some time, however it all the time felt mistaken — and it was all the time robust to determine what we must always put behind there. In idea, your most unique and greatest content material goes behind a paywall. However then fewer individuals learn it! We simply don’t love paywalls, and so we have determined to ditch ours.
Sadly, the media enterprise remains to be a tricky, cut-throat enterprise with tiny margins. It is a endless Olympic problem to remain above water and even maybe — gasp — develop. So …
