South America’s Electric Car Surge: From Lagging To Accelerating – CleanTechnica

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South America is arriving late to the electric vehicle transition, but the pace of change is beginning to quicken. For most of the 2010s, the region was a marginal player, with electric cars counted in the hundreds while China and Europe were racing ahead in the millions. That has shifted in the past two years. By 2024, several South American markets had already crossed the 5% threshold for electric vehicle sales, a point that has historically signaled the start of rapid adoption. Brazil sold about 125,000 electric cars in 2024, accounting for 6.5% of new sales, Uruguay reached 13%, and Colombia surpassed 7%. For a region long seen as lagging, those numbers mark an inflection.

This is part of a series on global EV tipping points, starting with a piece defining key technology diffusion and adoption models, followed by pieces exploring what 5% to 15%, 15% to 40% and 40% to 80% penetrations look like, then proceeding through key markets including Europe, China, India, the United States and Africa.

The vehicle market across South America is distinct from other geographies in ways that shape how electrification will unfold. Brazil dominates by sheer scale, with a domestic auto industry and a history of alternative fuels through ethanol. In many other countries, buses and minibuses are the backbone of urban transport and command a larger share of public mobility than private cars. Used car imports play an outsized role in some markets, bringing older gasoline and diesel vehicles from Europe and Asia at low cost, which has tended to suppress new car sales and delay cleaner technologies. These features mean the path to electric mobility in South America will not mirror China, Europe, or the United States, but it will have its own accelerants once tipping points are reached.

The early signals of change extend beyond passenger cars. Santiago and Bogotá have become global leaders in electric buses, with thousands already in service. Bogotá operates one of the world’s largest fleets of electric transit buses outside China, and Santiago is aiming for a fully electric public transport system by 2040. In Brazil, Volkswagen launched the e-Delivery truck, the first fully electric truck designed and manufactured in South America, and Ambev has ordered over 1,600 units for its beverage distribution fleet. These examples show that commercial electrification in Latin America is not an abstract future but an emerging reality. Charging infrastructure is also climbing the curve. Brazil grew from fewer than 2,000 public chargers in 2023 to more than 12,000 in 2024, and other countries are laying out highway corridors to support long-distance EV travel.

Policy is uneven but decisive where it is strong. Chile stands out with its mandate that all new light and medium vehicles sold after 2035 be zero emission. Colombia requires a third of government fleets to be electric by 2025 and has targeted 100% electric buses by 2035. Uruguay has paired its nearly 100% renewable grid with tax incentives that helped it reach double-digit EV sales shares. These examples show what committed policy can deliver. By contrast, Argentina has yet to establish clear EV policy frameworks, Venezuela’s gasoline subsidies have eliminated any consumer incentive to switch, and Peru and Ecuador have struggled to create consistent signals. The result is a patchwork across the continent, with clear leaders and clear laggards.

South America has several enablers of faster adoption. Clean electricity is a major advantage. Uruguay, Paraguay, and Brazil are already largely powered by renewable energy, so EV adoption brings immediate carbon and pollution benefits. Domestic auto manufacturing is another asset. Brazil is attracting billions in investment from BYD, Great Wall Motors, and others to build EV factories. That will reduce costs by avoiding tariffs and currency risks and will make EVs more affordable for Brazilian consumers. The region’s lithium reserves, concentrated in Chile, Argentina, and Bolivia, could eventually support a local battery supply chain if governments and investors align. Finally, the region is highly urbanized, with more than 80% of its population living in cities. This makes charging infrastructure easier to scale and concentrates both demand and environmental benefits.

Barriers remain. Economic volatility in Argentina and elsewhere makes long-term consumer financing difficult. Inequality means that even with falling prices, many households cannot afford new vehicles of any kind. Used ICE imports risk flooding weaker markets unless import standards are tightened, prolonging the life of combustion cars. Charging infrastructure outside of major urban centers is still thin, and grid reliability varies. In addition, Brazil’s biofuel industry is a strong political force and could slow EV policy in the short term as ethanol competes for the same narrative space as electrification.

Looking forward, passenger EV sales are projected to grow from single digits today to 10–20% by 2028, about half of new sales by 2035, and a clear majority by 2040. That is slower than China or Europe but faster than the United States under current trends. Fleet penetration will lag, as vehicles stay on the road for more than a decade, but by the late 2030s used EVs from early adopters in Europe, the US, and China will enter the South American second-hand market, dramatically expanding affordability. Commercial vehicles are likely to lead in certain segments. Urban buses are already electrifying and will likely be fully electric by 2040 in most major cities. Delivery fleets and medium-duty trucks will follow, while long-haul freight may take longer. By the end of the next decade, the commercial vehicle landscape in urban South America will be predominantly electric.

Tipping points are visible on the horizon. The first has already arrived with several countries surpassing 5% new EV sales. The next will be cost parity in the late 2020s, when EVs match or undercut combustion vehicles on upfront price. The used EV market will add another layer of acceleration in the mid-2030s, broadening access across income levels. Chile’s 2035 ICE ban will be a defining milestone, pushing automakers to treat South America as an electric market by default. By 2040, with automakers globally exiting ICE production, South America’s laggards will be forced to converge as new combustion models become scarce.

The leaders are clear. Chile provides the strongest policy framework, Brazil the industrial scale, Colombia the demonstration of public transport electrification, and Uruguay the early adoption success story. The laggards are also clear, with Argentina constrained by its economy, Venezuela by its subsidies and failing grid, and Bolivia and Paraguay by small market size and weak incentives. Strategic implications follow. For automakers, Brazil is the anchor for regional production and export. For governments, aligning energy and transport policy and closing off the used ICE import channel will determine the pace of change. For consumers, the shift will be uneven, starting in cities and higher income brackets, but by the late 2030s the flood of used EVs will democratize access.

South America’s transition is not linear, but the direction is set. 2024 marked the start of real momentum, with adoption shares finally climbing into the S-curve. By 2040, most new passenger cars and nearly all buses in major cities will be electric, powered by some of the cleanest grids in the world. The journey will be shaped by policy choices, industrial investment, and the region’s economic fortunes, but the end point is increasingly inevitable: an electrified transport system aligned with global trends and grounded in the region’s own resources and urban realities.