When Chilean truck driver Claudio Perez decided to purchase a Chinese-made family car two years ago, he was skeptical at first. However, the combination of a competitive price point and quick delivery time swayed him, and now he is a strong advocate for Chinese car models. Perez is just one of many car buyers in Latin America who have shifted from traditional US- and Brazilian-built cars to Chinese options in recent years.
According to the International Trade Center (ITC), Chinese car sales in Latin America have seen a significant increase in recent years. In 2019, the Asian economic powerhouse sold $2.2 billion worth of cars in the region, a number that grew to $8.5 billion the following year. This growth has positioned Chinese car sales at 20 percent of the region’s total, surpassing the United States and Brazil. The rapid expansion of Chinese car manufacturers in Latin America has been attributed to their ability to offer competitive prices without sacrificing quality.
Chinese carmakers have also made significant strides in the market for electric vehicles in Latin America. With 51 percent of all electric vehicle sales in the region coming from Chinese brands, they have established themselves as leaders in this emerging sector. The prevalence of Chinese-made electric buses in Latin American cities underscores the impact of Chinese manufacturers in promoting cleaner and more sustainable transportation options.
The favorable reception of Chinese cars in Latin America can be attributed to their affordability, which has made car ownership accessible to middle- and low-income populations in the region. Economists, such as Sebastian Herreros from the Economic Commission for Latin America and the Caribbean (ECLAC), emphasize the role of Chinese cars in expanding access to cleaner engine technologies and promoting electro-mobility in urban centers like Santiago, Bogota, and Mexico City.
In contrast to the United States and Europe, where protective import tariffs have hindered the growth of Chinese car manufacturers, Latin America has embraced Chinese models with open arms. With minimal import duties in countries like Chile, Chinese cars accounted for nearly 30 percent of car sales last year. The trend is also evident in major car-producing nations like Mexico and Brazil, where Chinese companies are making significant investments in local production facilities to meet the growing demand for their vehicles.
As Latin American countries continue to prioritize sustainable transportation solutions, the influence of Chinese car manufacturers is expected to grow even further. The affordability and quality of Chinese cars have not only reshaped the automotive market in the region but also paved the way for the adoption of cleaner technologies. With an increasing focus on electro-mobility as a means of combating environmental challenges, Chinese car models are poised to play a pivotal role in driving the transition towards a more sustainable future in Latin America.