Claudio Perez, a Chilean truck driver, initially had doubts about purchasing a Chinese-made family car two years ago. However, after considering the affordable price and quick delivery time, he decided to take the leap. His experience with the Chinese car changed his perspective entirely, leading him to become a loyal customer. This story is not unique, as millions of car buyers in Latin America have started shifting from US- and Brazilian-built cars to Chinese models in recent years.
The numbers speak for themselves when it comes to the expansion of Chinese car sales in Latin America. In 2019, China sold $2.2 billion worth of cars in the region, a figure that rose to $8.5 billion the following year. This accounts for 20 percent of the total car sales in the region in monetary terms, surpassing the United States with 17 percent and Brazil with 11 percent. Latin America now holds one of the largest shares of Chinese cars outside of Asia according to the International Trade Center.
Chinese carmakers have been focusing on offering competitive prices without compromising on quality, especially in the emerging market of electric vehicles. In Latin America, Chinese manufacturers hold 51 percent of all electric vehicle sales, with almost all electric buses in the region being made in China. This success can be attributed to significant improvements in quality, technology, and design over the years.
Unlike the United States and Europe, where protective import tariffs have hindered the growth of Chinese cars, Latin America has been more welcoming. In countries like Chile, with minimal import duties, Chinese models accounted for nearly 30 percent of car sales last year. Even in Mexico and Brazil, traditional car producers in the region, China is starting to make its mark. Chinese giant BYD, for example, is setting up its largest electric car plant outside of Asia in northeastern Brazil, targeting an annual production capacity of 150,000 units.
The rise of Chinese cars in Latin America has had a significant impact on the region’s middle- and low-income populations. By offering cheaper alternatives to traditional car brands, Chinese vehicles have allowed more people to purchase their first vehicle. Additionally, the introduction of cleaner engine technologies in major cities like Santiago, Bogota, and Mexico City has been made possible through Chinese cars. Economist Sebastian Herreros from the Economic Commission for Latin America and the Caribbean (ECLAC) emphasizes the importance of adopting electro-mobility to combat pollution and ensure sustainability.
The growth of Chinese car sales in Latin America represents a significant shift in the automotive market. With their competitive prices, quality products, and focus on electric vehicles, Chinese carmakers are reshaping the industry in the region. As more consumers like Claudio Perez share their positive experiences, it is evident that Chinese cars have a promising future in Latin America.
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