South America Electric Vehicles Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The South America Electric Vehicle market has been segmented on the basis of Vehicle Type (Passenger Cars and Commercial Vehicles), by Drive-train technology (Battery Electric Vehicles, Fuel cell Electric Vehicles, and Hybrid Electric Vehicles), by Charging Type (Normal Charging and Fast Charging) and Country (Brazil, Argentina, Colombia, and Rest of South America). The report offers market size and forecasts in terms of value (USD billion) for all the mentioned segments.

Market Snapshot

South America Electric Vehicles Market_Summary
Study Period: 2018-2027
Base Year: 2021
CAGR: >19 %

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Market Overview

The South America Electric Vehicles market was valued at USD 2.56 billion in 2021 and is anticipated to reach USD 13.43 billion by 2027, at a CAGR of 19.45% during the forecast period.

The COVID-19 pandemic has affected the automotive industry in the region as production and sales have witnessed a decline in 2020. Furthermore, the COVID-19 pandemic has a minimal effect on the South American electric vehicle market. However, in 2021, electric vehicle sales in the countries like Brazil and Argentina have helped the market recover quickly and regain momentum.

In 2021, sales of electric and hybrid vehicles increased in Brazil. In the South American nation during that year, close to 35,000 units were sold, a 77 percent increase from the year before. In Argentina, there is a constant increase in the demand of low emission vehicles, including battery electric cars and hybrid electric vehicles. For instance, In 2021, 5,871 low-emission vehicles were sold in the country. These include battery electric vehicles and hybrid electric vehicles. This signifies a growth of 148%, on 3,488 electric vehicles sold in 2020

Over the past few years, electric vehicles (EVs) have witnessed considerable growth in the region due to the need for addressing future energy requirements. The need to attain sustainable transportation plays a significant role in driving electric vehicle demand.

The electric vehicle market is coming up as an integral part of the automotive industry and represents a pathway towards achieving energy efficiency along with reduced emission of pollutants and other greenhouse gasses.

Apart from the industry’s slow and steady shift towards EVs pertaining to environmental issues, tax Benefits, rebates and subsidies are the other factors d driving the market. But lack of adequate charging infrastructure because of the market being in its nascent stage and low gasoline cost in some countries is expected to hinder marker growth over the forecast period.

Scope of the Report

The South American Electric Vehicle market covers the increasing adoption of electric vehicles and the latest developments made particularly in the South American region. The market has been segmented on the basis of Vehicle Type, Propulsion, Charging Type . The report offers market size and forecasts for South America Electric Vehicle Market in value (USD billion) for all the above segments.

By Vehicle Type, the market is segmented into Passenger Cars and Commercial Vehicles.

By Propulsion Type, the market is segmented as Battery Electric Vehicles, Plug-In Electric Vehicles, Fuel Cell Electric Vehicles, And Hybrid Electric Vehicles.

By Charging Type, the market is segmented into Normal Charging and Fast Charging.

and By Country, the market is segmented as Brazil, Argentina, Columbia, and Rest of the South America.

Drive-train Technology
Battery Electric Vehicles
Fuel cell Electric Vehicles
Hybrid Electric Vehicles
Charging Type
Normal Charging
Fast Charging
Vehicle Type
Passenger Cars
Commercial Vehicles
Rest of South America

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Key Market Trends

Commercial Vehicles is Expected to be a Fastest Growing Segment

Bus manufacturers like BYD are entering the South American market by overcoming the challenges to replace diesel buses with battery-operated ones. BYD Auto has received orders from Argentina to become a domestic auto manufacturer and will contribute to revamping the existing bus fleets with 100% electric buses.

Over the past few years, the demand for electric trucks in the South American region has been increasing. Factors such as achieving energy efficiency by reducing emissions, the need for addressing future energy requirements, an anticipated increase in the adoption of electric trucks for logistics and municipal applications, and investments made by OEMs to start producing of electric vehicles in the region are driving the market.

  • The national green growth policy for 2030, with one of the goals being the introduction of 600,000 electric vehicles by 2030. More specifically, according to this policy, it is expected to deploy 400,000 electric light-duty vehicles and 13,000 trucks.
  • In October 2021, BYD in collaboration with local operators Enel X and Metbus, established Latin America's first electric bus line in Santiago, Chile. The company has been the largest supplier of electric vehicles in the South America region. Besides electric trucks, BYD has supplied electric buses and taxis to Argentina, Chile, and Colombia.

Apart from Volkswagen, the company is also enquiring Volvo, Mercedes, etc., firms to check for cost competitiveness. The demand for electric commercial vehicles is poised to grow at a faster pace owing to the rising trend toward the adoption of electric vehicles, especially from the public transportation and logistics sectors.

South America Electric Vehicles Market_Vehicle Type

Colombia is Poised to Witness a High Growth Rate

Air pollution in Colombia is worsening at an exponential rate. Cities like Medellin and Bogota face high risks in terms of health and air quality. Following numerous studies from various national universities, researchers found that diesel vehicles are the primary source of pollution within Bogota. Hence, the government is taking incentives and subsidies to achieve an ambitious target of 600,000 EVs on road by 2030 to combat the aforementioned environmental issues. Primarily, tax benefits serve as the biggest incentive currently.

The government is converting the fleet of public transport buses to electric which is expected to drive the country market in coming years. For instance, In January 2021, -BYD announced that it has bagged a cumulative order to supply 1,002-unit pure-electric buses to Bogota, Colombia. These buses was scheduled to be delivered during 2021 to the first half of 2022 and will be put into operation on 34 bus routes across five regions of the city.

Vehicle tax in the country is based on the overall valuation of the car itself, varying anywhere from 1.5% - 3.5%. However, this has been relaxed to only 1% for Electric Vehicles. In addition to tax rebates, government is also lowering electricity tariffs that would make charging EVs even more affordable. Also, major automobile companies like Renault, BMW, Hyundai, and KIA are actively introducing their electric portfolio in Colombia.

South America Electric Vehicles Market_Country

Competitive Landscape

The South America Electric Vehicles Market is dominated by a few players such as Hyundai Motor Company, KIA Motors Corporation, BYD Auto, BMW Group, and Groupe Renault. The market for electric vehicles is characterized by the presence of both established companies as well as small start-ups.

There are also a large number of regional players currently focusing on specific geographies. For the commercial vehicle segment, BYD and Volvo are the most active companies. BMW, Kia, Renault, and Hyundai are some of the major companies which cater to passenger cars. The implementation of electric mobility has also increased the demand for charging infrastructure and players are partnering with other companies. For instance,

  • In March 2022, Shell exclaimed to install the first EV chargers in the service station network. For that, the company is working on its e-mobility strategy for the Latin-American region and plans to deploy its first EV chargers in Argentina. The company is currently assessing the initiative through a partnership with Audi and Volkswagen and has recently acquired a number of chargers to install in its Argentinian service stations.

Recent Developments

  • In July 2022, BYD launched the compact D1, its third EV model in the Brazilian market following the seven-seat Tan SUV and the Han sedan. The electric D1 will be sold directly to large fleet owners for BRL 269,900.
  • In April 2022, BYD Auto received an order of 1,000 D1 electric cars which are specially developed for the ridesharing services in alliance with BYD Auto and Didi Chuxing from Vemo a Mexico-based mobility provider company.
  • In April 2022, Renault introduced an all-electric version of its popular hatchback, the Kwid E-TECH, in Brazil. The model is available at a price of 142,990 Brazilian Real. The new Kwid E-Tech has 26.8 kWh batteries that can provide a range of 298 km in urban use and 265 km in mixed cycle driving, which combines city and highway driving. The car can charge to a range of 190 km in about 9 hours when charged from a 20A and 220V domestic outlet.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in USD Billion)

    1. 5.1 Drive-train Technology

      1. 5.1.1 Battery Electric Vehicles

      2. 5.1.2 Fuel cell Electric Vehicles

      3. 5.1.3 Hybrid Electric Vehicles

    2. 5.2 Charging Type

      1. 5.2.1 Normal Charging

      2. 5.2.2 Fast Charging

    3. 5.3 Vehicle Type

      1. 5.3.1 Passenger Cars

      2. 5.3.2 Commercial Vehicles

    4. 5.4 Geography

      1. 5.4.1 Brazil

      2. 5.4.2 Argentina

      3. 5.4.3 Colombia

      4. 5.4.4 Rest of South America


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Hyundai Motor Company

      2. 6.2.2 KIA Motors Corporation

      3. 6.2.3 BYD Auto

      4. 6.2.4 BMW Group

      5. 6.2.5 Groupe Renault

      6. 6.2.6 Volkswagen AG

      7. 6.2.7 Nissan


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Frequently Asked Questions

The South America Electric Vehicles Market market is studied from 2018 - 2027.

The South America Electric Vehicles Market is growing at a CAGR of >19% over the next 5 years.

The South America Electric Vehicles Market is valued at 3 Billion USD in 2018.

The South America Electric Vehicles Market is valued at 13 Billion USD in 2027.

Hyundai Motor Company, Kia Motors, BYD Auto, BMW, Groupe Renault are the major companies operating in South America Electric Vehicles Market.

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