The Question: Has the entry of BYD in Latin America signified a triumph for the region, surpassing the impact of electric cars?
BYD's Electric Revolution in Latin America
Chinese automotive giant BYD has made a significant impact in Latin America, shifting its focus to electric and plug-in hybrid models in 2022. This strategic decision has led to a surge in sales and expansion across the region.
The company, founded by Wang Chuanfu in 1995 as a rechargeable battery manufacturer for mobile phones, entered the electric vehicle market in 2003 after acquiring Xi'an Qinchuan Automobile. Since then, BYD has been at the forefront of the electric revolution, launching the world's first plug-in hybrid car, the F3DM, in 2008.
In Latin America, BYD's focus has been on urban transportation, specifically electric buses in Chile and Colombia. However, the company has recently expanded its reach, with the founder bringing the first BYD automobile production site to Brazil.
Mexico and Chile are currently the countries where BYD vehicles are the most affordable, with prices starting between $20,402 and $21,191. In Mexico, BYD sold 40,000 units in 2024 and aims to double that figure in 2025, with plans to build a plant for over 150,000 vehicles per year. The company is also assembling electric buses in Colombia and considering the installation of a car assembly plant.
BYD's success in Latin America is not without controversy. The European Commission has been closely monitoring Chinese companies like BYD due to suspected unfair competition related to possible subsidies from the Chinese government. In October 2024, the Commission imposed a 17% tariff on electric vehicles from BYD. Last March, an investigation was opened into one of BYD's plants in Hungary.
Despite these challenges, the proposed Mexico plant is not the only sign that Latin America could become a production hub for the new automotive era. In 2024, almost 412,500 electrified vehicles were sold in Latin America, representing a 73.5% year-on-year increase. Brazil led the region with an 88.7% year-on-year increase, followed by Mexico (67%) and Colombia (65%).
The Colombian government aims to incorporate 600,000 electric vehicles by 2030 through the National Electric Mobility Plan. If this ambition is realised, it could pave the way for a more significant role for Latin America in the electric mobility revolution.
Margaret Myers, director of the Asia and Latin America program at the Inter-American Dialogue, agrees. She suggests that if Latin America plays its cards right, it could become a strategic player in this revolution. However, Myers warns that without technology transfer or domestic industrialization processes, there won't be long-term benefits for the region.
BYD's annual revenues reached 777 billion yuan (108 billion dollars) in 2024, making it a formidable player in the global electric vehicle market. The company has operations in over 70 countries, 400 cities, and more than 30 industrial parks. Recently, BYD announced its arrival in Argentina and launched a new charging technology, the Super e-Platform, which can add 400 kilometers of range to a battery in just five minutes.
As the electric vehicle market continues to grow, the question remains whether Latin America will become a production hub beyond just a market for Chinese electric vehicles. If the region can navigate the challenges and seize the opportunities, it could play a pivotal role in the new automotive era.
