Market Overview

The Latin America electric vehicles market reached a size of USD 56.4 Billion in 2025 and is forecast to expand to USD 321.6 Billion by 2034. This growth is expected to occur at a CAGR of 21.34% during the forecast period 2026-2034. Key drivers include government incentives, rising fuel prices, expanding charging infrastructure, air pollution concerns, automaker investments, decreasing battery costs, greater consumer awareness, strict emissions regulations, technological advances, and increased availability of EV models.

Study Assumption Years

• Base Year: 2025
• Historical Year/Period: 2020-2025
• Forecast Year/Period: 2026-2034

Latin America Electric Vehicles Market Key Takeaways

• Current Market Size: USD 56.4 Billion in 2025
• CAGR: 21.34%
• Forecast Period: 2026-2034
• Chinese EV manufacturers like BYD plan significant expansion in Latin America, including announcing their first Mexico manufacturing plant.
• Major energy firms such as ExxonMobil and SLB are investing in lithium extraction projects in Chile and Brazil to support EV battery supply.
• Collaboration between companies like Geely and Renault aims to enhance local production and market access in Brazil.
• Government collaborations in Mexico are expected to introduce affordable domestic EVs priced between $4,400 and $7,400.
• Brazil's auto alliance has increased its electric vehicle fleet goals to 20,000 by 2025 owing to high performance.

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Market Growth Factors

The Latin America Electric Vehicles market is driven by government incentives for electric vehicles for consumers and manufacturers, battery development, technology advancements, and declining battery costs. The increase in fuel prices is also augmenting the growth of the electric vehicles market. Lower lifetime costs for EVs and common installation of charging points in the region reducing range anxiety and improving its usability are driving EV adoption. Air pollution in cities and stringent worldwide emissions regulations are also increasing demand for cleaner forms of electric mobility.

Some automakers include BYD, which is preparing to sell 100000 EVs per year in Mexico in 2025, and is now building plants in Mexico which could produce up to 300000 EVs/year. Others include Geely, which set up a joint venture with Renault in Brazil for distribution of Renault in that country and producing cars there. These investments, with support of local manufacturing jobs, have diversified the offerings of affordable EVs in the region.

Falling battery costs, batteries represent most EV value, and increased understanding of sustainability gains increase demand. ExxonMobil, SLB and BYD are leading lithium producers in the industry. To increase lithium output is critical for achieving growth in supply chains for EV batteries. Technological advancements in these countries along with resource availability make electric vehicles viable in Latin America.

Market Segmentation

Component Insights:

• Battery Cells & Packs: Includes the primary energy storage units for EVs, essential for propulsion and vehicle range.
• On-Board Charger: Devices that convert AC power to DC to charge vehicle batteries efficiently.
• Fuel Stack: Components used in fuel cell electric vehicles to generate power through hydrogen fuel.

Charging Type Insights:

• Slow Charging: Charging method with lower power, suitable for longer durations and overnight charging.
• Fast Charging: High-power charging enabling quicker replenishment of vehicle batteries, reducing downtime.

Propulsion Type Insights:

• Battery Electric Vehicle (BEV): Fully electric vehicles powered solely by battery energy.
• Fuel Cell Electric Vehicle (FCEV): Vehicles using hydrogen fuel cells to produce electricity.
• Plug-In Hybrid Electric Vehicle (PHEV): Vehicles combining electric battery power with internal combustion engines, rechargeable via external power sources.
• Hybrid Electric Vehicle (HEV): Vehicles using both an internal combustion engine and electric propulsion but without external charging.

Vehicle Type Insights:

• Passenger Vehicles: Electric vehicles designed primarily for personal transportation.
• Commercial Vehicles: EVs intended for business use, including delivery and transport vehicles.
• Others: Other types of electric vehicles not classified as passenger or commercial.

Regional Insights:

• Brazil
• Mexico
• Argentina
• Colombia
• Chile
• Peru
• Others

Regional Insights

Brazil emerges as a dominant region in the Latin America electric vehicles market, supported by investments from automaker alliances and a rising fleet target of 20,000 electric vehicles by the end of 2025. The region benefits from expanded manufacturing activities and sustained government and corporate incentives, making it a focal point in the region's transition to electric mobility.

Recent Developments & News

In January 2025, Mexico announced plans to produce its own economical electric vehicle through a public-private partnership, with expected pricing from $4,400 to $7,400. Olinia, a Mexican company, is tasked with manufacturing these EVs to provide competition to international automakers. In May 2024, Brazil's auto alliance, comprised of Raízen, Movida, and BYD alongside the ride-hailing app 99, increased their EV fleet target to 20,000 by the end of 2025, reflecting performance that exceeded initial expectations since 2022.

Key Players

• BYD
• Geely
• Renault
• ExxonMobil
• SLB (formerly Schlumberger)

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