When Chilean truck driver Claudio Perez purchased his first Chinese-made family car two years ago, he was skeptical. However, the combination of an affordable price and quick delivery time ultimately convinced him to take the plunge. Now, Perez is just one of many car buyers in Latin America who have shifted from traditionally US- and Brazilian-built cars to Chinese models in recent years.
The International Trade Center (ITC) reports that in 2019, Chinese car sales in Latin America amounted to $2.2 billion. By 2020, this figure had surged to $8.5 billion, representing a significant chunk of the region’s overall car sales. In fact, Chinese cars accounted for 20 percent of total sales in money terms, surpassing the United States and Brazil. It’s clear that Chinese automakers have established a strong foothold in the Latin American market.
Chinese car manufacturers have made concerted efforts to offer vehicles at competitive prices without compromising on quality. Analysts note that in the realm of electric vehicles, Chinese brands have captured a majority market share in Latin America, particularly with electric buses. The growth of Chinese car manufacturers can be attributed to notable improvements in quality, technology, and design, making them increasingly appealing to consumers in the region.
In countries like Chile, where import tariffs are minimal, Chinese cars have gained significant traction, comprising nearly 30 percent of car sales in 2020. Similarly, in Mexico and Brazil, Chinese automakers are making significant strides. Notably, Chinese giant BYD is establishing a large electric car plant in northeastern Brazil, further solidifying China’s presence in the Latin American automotive market.
The affordability of Chinese cars has allowed various segments of the middle- and low-income population in Latin America to purchase their first vehicles. Additionally, the introduction of cleaner engine technologies in major metropolises such as Santiago, Bogota, and Mexico City has contributed to environmental improvements. Economists emphasize the importance of adopting electro-mobility swiftly as a means of combating pollution and promoting sustainability in the region.
The rise of Chinese cars in Latin America represents a significant shift in the automotive landscape. With increasing acceptance and popularity among consumers, Chinese manufacturers are poised to continue expanding their market share and influence in the region. As economic and environmental considerations come to the forefront, Chinese cars offer a compelling solution for both consumers and policymakers looking towards a more sustainable future.
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