Chinese Cars Gain Popularity in Chile

In a notable shift in consumer preferences, Latin American car buyers are increasingly turning to Chinese-made vehicles, as exemplified by 47-year-old Perez, who recently purchased a Chinese model. This trend has seen Chinese car sales in the region reach $8.5 billion last year, accounting for 20 percent of total car sales, surpassing the United States and Brazil. Analysts attribute this growth to Chinese manufacturers' commitment to offering competitive prices without sacrificing quality, dispelling previous stigmas associated with Chinese brands. The electric vehicle (EV) market has particularly benefited from this trend, with Chinese companies capturing 51 percent of all EV sales in Latin America. The dominance of Chinese manufacturers is evident in the electric bus sector, where nearly all buses in the region are produced in China. In countries like Chile, where import duties are minimal, Chinese vehicles made up nearly 30 percent of car sales last year, further solidifying their presence in the market. China's influence extends to major Latin American car producers, with companies like BYD establishing significant operations in the region. BYD is currently constructing its largest electric car plant outside Asia in Camacari, Brazil, aiming for an annual production capacity of 150,000 units. This expansion reflects a broader trend where affordable Chinese cars are enabling middle- and low-income consumers to purchase their first vehicles. Economist Sebastian Herreros emphasizes the urgency for Latin American countries to embrace electro-mobility, framing it as essential for survival in a rapidly changing automotive landscape.