EV Gross sales Are Booming In Bolivia As The New President Scraps The Gas Subsidy

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If one is within the electrification of growing nations, Bolivia is probably probably the most fascinating Latin American nation to observe in 2025. Amidst a two-year-long gasoline disaster, the Andean nation has been quietly constructing an enormous EV revolution as ICEV gross sales slowly collapse, as we reported earlier this yr.

Which makes it all of the extra irritating that I can’t discover dependable information on how gross sales within the nation look.

Regardless, by the previous few weeks, I’ve been making an attempt to get as a lot data as attainable to at the very least current a basic image. Nonetheless, as a result of I do know our CleanTechnica readers wish to be additional knowledgeable, I’ll current some temporary context on how Bolivia acquired to this place earlier than displaying the obtainable information we’ve about what’s occurring.

Transient historical past of Bolivia

Traditionally, Bolivia had been referred to as “Excessive Peru” — because of the excessive Andean peaks and plateaus from the Viceroyalty of Peru. After Independence, the 2 nations briefly toyed with unity, however the experiment was over already by 1839.

Because the core of the previous indigenous lands beneath Incaic rule, Bolivia stays a rustic with a really giant proportion of indigenous inhabitants, someplace between 38% and 48% based on a number of sources. Regardless of this, for many years the nation remained beneath the rule of a largely urbanized, white(ish) political elite. Although, this not at all translated to overwhelming conservative politics, as events such because the Nationalist Revolutionary Motion (MNR) remained related by the second half of the 20^th century.

After a deep political disaster that led to a number of presidents resigning in collection, Evo Morales gained the nationwide elections in 2005 and have become Bolivia’s first indigenous president, and in addition the primary president ever to win with an absolute majority (54%), therefore not requiring a second electoral spherical. Evo went to reform the Structure and have become the primary president of the (now renamed) Plurinational State of Bolivia, implementing huge social insurance policies that will be funded due to the commodity growth in these years. Evo was removed from the one leftist chief in our area, and the general success of the Latin American left in most nations initially of the millenium (together with Venezuela, Argentina, Chile, Bolivia, Brazil, Peru and Ecuador) went on to be known as the “Pink Tide.” Lots of very distinguished leftist insurance policies, together with the nationalization of fossil gasoline sources (voted for in a Plebiscite in 2004) and the constructing of La Paz’s well-known gondola system, come from these years.

Gas subsidies amidst rising after which falling fossil gasoline manufacturing

1997 was the primary yr (in current historical past) when gasoline costs had been frozen as a way to regulate inflation. In 2004, the worth went up, but it surely was as soon as once more frozen to maintain it as a one-time factor. By then, there have been almost half 1,000,000 ICEVs in Bolivia’s streets.

In 2010, Evo tried to lift the worth (which was as soon as once more far under market costs), however well-liked opposition didn’t permit him to. At this level, Bolivia’s ICEV fleet had almost doubled to 960,000 autos, which means the associated fee for sustaining this subsidy had probably doubled as properly.

However again then, the federal government had the sources to pay for it due to important gasoline reserves, regular (if low) oil manufacturing, and the commodities growth. By 2014, Bolivia reached the best degree ever in fossil gasoline manufacturing. Oil stood at simply over 50,000 barrels a day (a really small quantity by worldwide requirements, however in all probability sufficient to maneuver 1,000,000 autos), whereas gasoline was a a lot bigger 59 million cubic meters a day.

Nonetheless, as lots of our readers could keep in mind, that was the yr that commodity costs crashed. As revenues fell, investments floundered and reserves dwindled, resulting in stagnation after which secular decline, with manufacturing falling by round 50% by the subsequent decade: in 2024, manufacturing had fallen to 32 million cubic meters a day for gasoline, and to 23 thousand barrels a day for oil.

And thru this decline, Bolivia’s ICEV fleet stored rising, and gasoline demand stored rising. With shrinking manufacturing, the nation was pressured to import gasoline with the intention to promote it at low cost charges at a time when gasoline costs had been additionally happening and thus exports had been falling. Consequently, the federal government — not wishing to spark social unrest — resorted to Bolivia’s worldwide reserves, which had solely lately been constructed up.

The end result was catastrophic. Reserves had risen from a pittance in 2004 (1.1 billion USD) to a big 15 billion in 2014, however by 2023 they had been again all the way down to 1.7 billion. At this level, it was clear that one thing needed to change.

By 2024, Bolivia’s automobile fleet had risen to over 2.5 million autos, although with a small presence now of EVs. Gas had grow to be scarce and features had grow to be widespread at gasoline stations. The financial system stalled, with a 1.1% discount that yr, whereas the price of gasoline subsidies rose over 2 million {dollars}, over 5% of its complete funds, and solely at the price of decimating its reserves.

The tip of the gasoline subsidy

Lengthy story brief, important infighting on the Socialist Various Motion, Evo Morales’ Celebration, plus the financial disaster, led to the victory of a center-right candidate in 2025’s elections: Rodrigo Paz Pereira.

President Paz declared Financial Emergency virtually instantly, with the primary resolution being the elevating of gasoline costs, virtually doubling the earlier ones. At $1 per liter for low-grade, $1.58 for premium, and $1.40 for diesel, costs at the moment are extra consistent with the remainder of the area. Although, they continue to be cheaper if we use the parallel alternate fee as an alternative of the official one.

The choice sparked panic amongst automobile homeowners, with lengthy strains to purchase the final obtainable gasoline at backed costs. Regardless of social unrest, it appears the situation from 2010, with large protests, has not been repeated. Paz additionally elevated the minimal wage, aiming to “defend the wallets of Bolivians,” because the rise in gasoline worth will inevitably enhance inflation.

It’s onerous to foretell whether or not this may have an effect on EV gross sales positively or negatively. On one hand, gasoline will now be dearer, however on the opposite, it’s probably that it’ll now be obtainable in any respect moments, offering certainty to automobile homeowners that they’ll be capable to refuel. Regardless, two years of systematic gasoline shortage in all probability have modified the mindset of a number of Bolivians.

What can we find out about EV adoption in Bolivia?

This brings us to the newest a part of our article: what number of EVs are being bought in Bolivia? I’ve made a big effort to get this information, however, sadly, it stays exterior our scope. However what we did discover was information on domestically obtainable fashions, and import numbers, and that ought to present us a basic concept on what’s taking place there.

Concerning fashions, other than the native model Quantum, it appears BYD and JMEV are the principle EV manufacturers at present current in Bolivia. I’ve discovered it very onerous to match costs for EVs and ICEVs, as for no matter motive, EVs have a tendency to look in Bolivianos whereas ICEVs are provided in US {dollars}: the JMEV EV3, for instance, may very well be both 50% dearer than the Renault Kwid or related in price, relying on whether or not we use the official alternate fee or the parallel one. It’s been a standard speaking level that EVs are far dearer than ICEVs, however after evaluating a few fashions, I’m not too satisfied. There’s important presence of Chinese language manufacturers within the nation, however for now most of those manufacturers are targeted on the ICEVs of yore. Although, Geely already has an upcoming part for 3 of its EVs (in all probability the Geome, the EX5, and the PHEV Starray EM-i).

Concerning imports, Bolivian media experiences that the price of EVs coming into the nation has grown exponentially: in 2022, 1.8 million USD had been spent on bringing in such autos, with the quantity rising to three.74 million in 2023, 4.98 million in 2024, and an astonishing 16.3 million in Jan–Oct 2025. This represents 300% progress over 2024, and since EVs are prone to be cheaper the extra lately they had been imported, it’s additionally probably the variety of imported models was larger.

We additionally discovered that complete imports for “transportation tools” for 2025 (Jan–Oct) was 203 million {dollars}, which means EVs accounted for 8% of that worth. But when we account for the truth that not all that transportation tools was autos, EV gross sales in all probability account for a better share than that.

And it will get higher. There’s the Bolivian homegrown EV firm: Quantum, specialised in promoting mini-cars and bikes — although, they now have at the very least one city-car immediately competing with Chinese language imports, a number of last-mile supply vans, and one mid-range, 2-ton, fast-charging succesful truck. In all equity, I couldn’t decide if all these heavier autos are domestically constructed, are domestically assembled, or are imported complete. However at the very least a few of the gross sales definitely go to domestically buily mini automobiles from Quantum, which means market share needs to be larger than imports point out.

How excessive is EV market share then? I’d go together with “at the very least 10%.” For now, that needs to be adequate, and it will place Bolivia in third place within the area, behind Uruguay and Costa Rica, and barely forward of Colombia (which reached 9.98% in November).

Ultimate ideas

Bolivia wasn’t alone in its resolution to finish gasoline subsidies: Ecuador additionally did so with gasoline in 2024 and with diesel this previous September, and Venezuela has restricted the quantity of backed gasoline per citizen. In all instances, social unrest (when and the place it occurred) was not sufficient to discourage both authorities, marking a stark distinction with prior efforts.

Part of this, after all, is a results of financial disaster and/or stagnation. That in all probability has hammered into the conscience of components of the inhabitants that gasoline customers must pay the total worth if the state is to stay viable. However part of me wonders if the presence of EVs as a rising pressure in Bolivia and Ecuador has additionally made a distinction. Years in the past, gasoline was a basic want; these days, it’s a selection, one which will present reliability or consolation, however that’s not at all required for individuals or corporations to get by. Within the case of Bolivia, I’d collect this impact can be additional compounded because of the existence of an area EV champion.

I don’t know lots of people in both nation (truly, I don’t know anybody in Bolivia), so it’s onerous for me to reply this query. And even when EVs have certainly influenced this end result, I’d anticipate it will be in a principally silent, maybe unconscious method. However the truth stays that now one can lastly reside, work, and thrive with out gasoline, and accomplish that whereas supporting the native financial system, and, within the case of Bolivia, the nationwide business. And that has acquired to make a distinction.

What do you guys assume?