Latin America EV Market Share H1 2023, Half 3: Leaders of the Pack (Colombia, Uruguay & Costa Rica)
And we’re again, with the final a part of our report on Latin America EV market share! If you happen to haven’t learn the earlier articles, you may test them out right here:
In right here, we are going to meet the market leaders, most of which have proven important progress and might be ripe for fast disruption … plus a frontrunner 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 advanced to grasp in our complete listing. Within the face of it, the information would appear to level to a generalized stagnation of the market. Plug-in automotive gross sales have been dropping month after month, falling over 10% in H1. “Catastrophe!”, will scream the naysayers, having finally the particular proof that their omens have been appropriate, and EVs have been nothing however a fad, a brief growth primarily based upon governmental whims. Isn’t that the way it usually goes?
However what if I informed you that the naysayers are improper, 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 could appear that the market is stagnant certainly. However this information is incomplete: Colombia’s 2022 numbers have been closely skewed because of the buy of almost 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 charge. However PHEVs are nonetheless disappointing, with a 11% lower that brings the overall YoY progress charge to only 13%.
However wait! I assumed we mentioned 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 in the near past been managed, however nonetheless stands over 10%), extreme foreign money 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 components have brought on 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% to date 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 be advanced. 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 enormously promoted EVs (and plug-less hybrids as effectively).
However, although EVs are getting cheaper (and extra reasonably priced choices are arriving, such because the $17,300 Changan Lumin), native foreign money 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 immediately (in USD) that they have been a couple of months in the past. instance is the BYD Dolphin, which, regardless of a major value lower, is now dearer in USD than the day it arrived within the nation:
This might be problematic for the EV market, as ICEVs are proving succesful to at the least 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, even perhaps a value struggle that brings EV costs extra consistent with the remainder of the world.
Market composition skews in direction of BEVs: 1,630 have been bought in H1 as in contrast with 1,163 PHEVs. Given the 90,869 automobiles bought in whole 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 related tradition, related accent, shared historical past, and Montevideo is as near Buenos Aires as a metropolis could be whereas nonetheless present in a unique nation. But, in respect to EVs, they’re as far aside as two international locations could be, with Argentina being one of many greatest laggards and Uruguay being one of many undisputed leaders.
27,264 automobiles (each gentle and heavy) have been bought in H1 2023. Of those, 784 have been BEVs, with a market share of two.87%. Sadly, Uruguay’s official information doesn’t embody PHEVs, nor presents numbers in a month-to-month foundation, so we will solely present yearly numbers:
Yearly BEV Gross sales and Market Share in Uruguay (Mild and Heavy Automobiles)
Uruguay additionally has one of the complete fast-charging networks within the area. Nonetheless, most of it’s primarily based upon AC Kind 2 chargers able to charging at 22 kW. Although not best, it’s a comparatively small nation, and little doubt many individuals will discover these comparatively sluggish chargers to be sufficient to let go of vary nervousness.
As for the market composition, as soon as once more, we meet the reign of the Chinese language: 8 out of the 11 most bought 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 help, and the great charging community, it wouldn’t shock me if as soon as they decrease their value, we are going to see huge 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 really leads the complete continent (presenting greater BEV market share than the US and Canada).
25,741 automobiles have been bought 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 revenue standing. Furthermore, gross sales are rising at electrifying pace (pun meant), with a 171% enhance YoY to date in 2023! Not solely is Costa Rica the chief, however it’s additionally bolting forward at a charge 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 folks aren’t significantly rich. It’s so spectacular that I’m unable to discover a affordable rationalization: Costa Rica does have some particular perks for EVs (reminiscent of decrease taxes, no tariffs, and free on-street parking), and it additionally has restrictions for ICEVs in the principle cities, however, actually, 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 an concept why this may 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.
Nonetheless, when wanting on the high fashions bought, solely 5 are Chinese language. Maybe there’s nonetheless hope for the legacy automakers:
That’s all for immediately, 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 shall be decrease, charging networks shall be higher, information shall be extra full, and EVs shall be way more widespread in each single one in all these markets.
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