Latin America Electric Vehicles Market

Latin America Electric Vehicles Market Overview:

The Latin America electric vehicles market size reached USD 46.06 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 319.14 Billion by 2033, exhibiting a growth rate (CAGR) of 22.46% during 2025-2033. Government incentives, rising fuel prices, expanding charging infrastructure, urban air pollution concerns, automaker investments, falling battery costs, growing consumer awareness, stricter emissions regulations, technological advancements, and increasing EV model availability are driving the growth of the Latin America electric vehicles market.

Latin America Electric Vehicles Market Trends:

Expansion of Chinese Automakers into Latin America

Chinese electric vehicle (EV) manufacturers are increasingly targeting Latin America as a key market for expansion, capitalizing on the region's growing demand for affordable EVs and its strategic importance. For instance, BYD plans to sell 50,000 EVs in Mexico in 2024 and double that to 100,000 by 2025. The company is also set to announce the location of its first manufacturing plant in Mexico, with an initial production capacity of 150,000 vehicles, expandable to 300,000. In addition to this, Geely and Renault also revealed plans to expand their cooperation in Brazil in February 2025. This includes utilizing Renault's distribution network to sell Geely vehicles imported from China and potentially assembling vehicles locally. This partnership aims to enhance production capacity utilization for Renault and provide Geely with a platform to enter new markets amid global trade tensions. These strategic moves by Chinese automakers are reshaping the Latin American EV landscape, offering consumers a wider range of affordable electric vehicles and stimulating local economies through significant investments.

Investments in Lithium Extraction by Major Energy Corporations

The surge in EV demand has prompted major energy companies to invest heavily in lithium extraction projects across Latin America, a region rich in lithium reserves essential for battery production. In 2023, BYD secured mining rights for two sites in Brazil's Lithium Valley, marking its first mining venture beyond China. This strategic move aims to secure a stable supply of lithium for battery production, with the project potentially becoming productive within eight to fifteen years, subject to economic viability. Moreover, in February 2025, ExxonMobil and SLB (formerly Schlumberger) expressed interest in lithium projects in Chile, the world's second-largest lithium producer. Both companies have engaged in discussions with Chilean mining officials, exploring opportunities to leverage lithium extraction technologies. Exxon's focus includes employing direct lithium extraction methods to minimize environmental impacts. These investments by major energy corporations underscore the critical importance of securing lithium resources to meet the burgeoning demand for EVs. By investing in Latin America's lithium extraction capabilities, these companies aim to strengthen the EV supply chain, reduce production costs, and support the global transition toward sustainable transportation.

Latin America Electric Vehicles Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on component, charging type, propulsion type, vehicle type, and region.

Component Insights:

• Battery Cells & Packs
• On-Board Charger
• Fuel Stack

The report has provided a detailed breakup and analysis of the market based on the component. This includes battery cells & packs, on-board charger, and fuel stack. 

Charging Type Insights:

• Slow Charging
• Fast Charging

A detailed breakup and analysis of the market based on the charging type have also been provided in the report. This includes slow and fast charging. 

Propulsion Type Insights:

• Battery Electric Vehicle (BEV)
• Fuel Cell Electric Vehicle (FCEV)
• Plug-In Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)

The report has provided a detailed breakup and analysis of the market based on the propulsion type. This includes battery electric vehicle (BEV), fuel cell electric vehicle (FCEV), plug-in hybrid electric vehicle (PHEV), and hybrid electric vehicle (HEV).

Vehicle Type Insights:

• Passenger Vehicles
• Commercial Vehicles
• Others

A detailed breakup and analysis of the market based on the vehicle type have also been provided in the report. This includes passenger vehicles, commercial vehicles, and others.

Regional Insights:

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

The report has also provided a comprehensive analysis of all the major regional markets, which include Brazil, Mexico, Argentina, Colombia, Chile, Peru, and Others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Latin America Electric Vehicles Market News:

• January 2025: Mexico declared that it would build its own inexpensive electric vehicle (EV) through a public-private collaboration, with prices likely to range between $4,400 and $7,400. Olinia, a Mexican firm, was set to build the automobiles, providing Mexicans with an option to international electric vehicle companies.
• May 2024: Brazil's auto alliance, which included ride-hailing app 99, raised its electric vehicle fleet target to 20,000 by the end of 2025 after exceeding performance expectations since its 2022 launch. Initially, the alliance comprising Raízen, Movida, and BYD aimed for 10,000 electric cars on 99's platform.

Latin America Electric Vehicles Market Report Coverage:

Key Questions Answered in This Report:

• How has the Latin America electric vehicles market performed so far and how will it perform in the coming years?
• What is the breakup of the Latin America electric vehicles market on the basis of component?
• What is the breakup of the Latin America electric vehicles market on the basis of charging type?
• What is the breakup of the Latin America electric vehicles market on the basis of propulsion type?
• What is the breakup of the Latin America electric vehicles market on the basis of vehicle type?
• What are the various stages in the value chain of the Latin America electric vehicles market? 
• What are the key driving factors and challenges in the Latin America electric vehicles market?
• What is the structure of the Latin America electric vehicles market and who are the key players?
• What is the degree of competition in the Latin America electric vehicles market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Latin America electric vehicles market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Latin America electric vehicles market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Latin America electric vehicles industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.