In 2019, Peruvian green energy entrepreneur Luis Zwiebach flew 4,000 miles to California to test-drive a Tesla Model 3 when he wanted to buy an electric vehicle (EV). At the time, Tesla had no official importer in Peru, and Zwiebach couldn’t navigate the country’s complex car import process.

Undeterred, he eventually purchased a used Tesla from a private seller. Charging the car initially proved challenging—he improvised a grounding solution by sticking a fork in the soil at a friend’s beach house.

Today, buying an EV in Peru is far easier, though Tesla still lacks a local presence. Chinese automakers like BYD, Geely, and Great Wall Motors (GWM) dominate the market, offering EVs at around 60% of Tesla’s price. Traditional brands like Toyota, Kia, and Hyundai have also introduced EV models locally. Tesla did not respond to requests for comment.

Chinese automakers are expanding their footprint in South America through dual strategies—selling both traditional combustion-engine cars and EVs. Data from Peru’s automotive association shows EV sales remain a small but growing segment, with hybrid and pure EV sales hitting a record 7,256 units in the first nine months of 2024, up 44% year-on-year.

The opening of China-built Chancay Port last year has turbocharged Chinese car exports to South America, halving trans-Pacific shipping times. With rising trade barriers in the U.S. and Europe, the port provides a crucial alternative route.

BYD plans to open its fourth dealership in Lima by year-end, while Chery and Geely already operate over 12 dealerships in Peru. "EVs are selling well—we move more than two a day," Zwiebach noted.

The surge in demand has led Zwiebach to expand his renewable energy business, now installing EV chargers for clients like real estate developers and shopping malls. "One developer told me he’d buy a penthouse only if it had a charger," he said. "Now charging at home is as easy as plugging in your phone."

Global auto analyst Felipe Munoz of JATO Dynamics highlighted that Chinese automakers, grappling with a profit-sapping price war and inventory glut at home, are redirecting excess production to markets like the Middle East, Central Asia, and Latin America.

In Chile, Chinese brands captured 29.6% of new passenger car sales in Q1 2024. "They’ve secured a foothold in both EVs and combustion vehicles," said Martin Bresciani, head of Chile’s automotive chamber. "Their quality meets global standards."

The International Energy Agency (IEA) reports that Latin America’s EV adoption rate doubled to 4% in 2024, driven by government incentives and affordable Chinese models. Chile, Brazil, and Uruguay have set new records, with EVs accounting for 10.6%, 9.4%, and 28% of new registrations, respectively.

Even in Argentina, where economic challenges persist, EV sales are rising from a low base. BYD entered the market in October and already leads EV sales in Brazil, Colombia, Ecuador, and Uruguay.

Dealers across South America credit Chinese brands’ success to partnerships with reputable local importers and competitively priced models tailored to regional preferences. In Uruguay, BYD ranks third in total sales, trailing only Chevrolet and Hyundai. Chinese brands now hold 22% of the market, more than double their 2023 share.

At Chancay Port, rows of Chinese-made cars and stacked containers now overshadow the former fishing village’s weekend tourism. COSCO Shipping, the port operator, expects 19,000 vehicles to arrive from China by year-end, with shipments also bound for Chile, Ecuador, and Colombia.

Peru’s auto imports via Chancay surged from 839 in January to 3,057 in July. While Peru lacks domestic auto manufacturing, Brazil has seen tensions rise over surging Chinese imports. Some Chinese automakers, including BYD and GWM, are now investing in local production to bypass tariffs.

BYD’s Argentina head, Stephen Deng, predicts the country’s EV adoption could eventually match Brazil’s, with plans to import cars from Brazilian plants by 2027.

Despite the growth, challenges remain. "Driving long distances along Peru’s coast in an EV is still tough," Zwiebach admitted. "But the lower operating costs and minimal maintenance make up for it."