Latin America EV Gross sales Report: 10% EV Market Share Surpassed in Q2!

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Three months in the past, in our earlier quarterly report, I wrote the next:

If costumer curiosity stays and excessive oil costs begin to hit the area, there’s a really actual probability we are going to surpass 10% sooner or later this 12 months.

By this, I meant I used to be hopeful that, if the celebrities had been to align, we might see one thing like 10.2% EV market share by means of Latin America by the fourth quarter (on condition that it’s usually the one with the best gross sales and market share).

Usually it’s not enjoyable to be incorrect, however at present I’m very joyful, for what we acquired as a substitute was an uptick in development in Q2 that raised EV gross sales 137% above the degrees from a 12 months in the past and introduced market share all the best way as much as 10.7%!

One other piece of excellent information is that BEVs are rising quicker than PHEVs (+162% vs. +109%), that means that regardless of a number of markets remaining stubbornly centered on plug-in hybrids, the area is pivoting in the direction of a extra BEV-centric market distribution, with 58% of regional gross sales being purely electrical automobiles and 42% being both plug-in hybrids or extended-range electrical automobiles.

The elements selling EV adoption by means of Latin America — particularly, extra reasonably priced choices and better gas costs — are more likely to stay within the third quarter, so it’s potential we’ll see comparable development within the close to future. For now, nevertheless, allow us to rejoice the milestone of 10% EV market share within the area!

Market overview

EV gross sales reached a brand new all-time excessive in Q2, getting very near 190,000 items. The earlier document, in Q1, noticed the overall at just below 120,000 items, that means the expansion from that already spectacular quarter was substantial. For the primary time, we additionally noticed BEV gross sales surpass 100,000 quarterly items.

EV market share jumped considerably to 10.7% (6.2% BEV), considerably above final 12 months’s (4.6%) and final quarter’s (7.7%). Because of this we’re now very more likely to see a yearly market share close to or maybe above 10%, one thing unthinkable only a few months in the past!

The excellent news doesn’t cease right here. For the primary time, we’re seeing combustion powertrains (ICEV+MHEV+HEV) fall YoY regardless of the general market presenting slight development. In Q2, whole car gross sales grew by almost 50,000 items, but as a result of EVs grew by 110,000, ICEVs and hybrids fell by over 60,000 items! It’s a small begin, however it factors to a development we’re already seeing in lots of markets around the globe.

Nation overview

In contrast to in Q1, we’re seeing fairly a number of adjustments this time round in our regional rating. As traditional, we are going to rank primarily based on BEV gross sales, concerning PHEV gross sales as necessary however secondary.

general gross sales, Brazil stays the undisputed chief attributable to its gargantuan market and its quick tempo of electrification, which stands above the regional common. Nevertheless, Colombia’s vital development in BEV gross sales means the nation received silver, with a major benefit over Mexico, which acquired bronze (and which, to be truthful, has far increased PHEV gross sales).

Additional down, we once more discover Uruguay and Costa Rica, adopted by Chile, Ecuador, and Argentina. Beneath, all with beneath a thousand quarterly BEV gross sales, we’ve got Paraguay, Peru, Guatemala, Panama, and El Salvador.

It’s attention-grabbing to notice that there are at present 4 nations the place PHEV gross sales are increased than BEV gross sales: Mexico, Argentina, Paraguay, and Peru. Of those, solely Paraguay is a notable EV vendor (with EV market share reaching 15% for the quarter, 10% of this being PHEVs), whereas Mexico and Argentina stay beneath 8% market share and Peru stays beneath 2%. This factors to a development the place PHEV-heavy markets are usually laggards, and it stays to be seen if they are going to pivot in the direction of BEVs as they develop.

Talking of market share, we’re additionally seeing a number of information in right here: Uruguay is now over 40% (37% BEV), Costa Rica is once more rising and has reached 22%, and Colombia is now over 20% (18% BEV). Beneath, we discover Ecuador now over 11% (8% BEV, and, sure, because of ZEMO, we now have knowledge on Ecuador’s PHEV gross sales). However an important participant is Brazil: South American’s big is now at 13.5% EV market share, of which 7.5% are BEVs solely. And, spoiler alert: it appears the nation was at or very near 10% BEV market share in July, that means this speedy development section isn’t over.

Beneath, we discover explosive development coming from Paraguay, with gross sales in Might alone already surpassing the overall from 2025. Chile, in 7^th place, additionally noticed rising gross sales, almost doubling market share and general numbers from Q1. Argentina, a former laggard, is in the meantime presenting spectacular development, almost tripling market share from Q1 to Q2 and getting fairly near Chile in general market share. Nevertheless that is primarily attributable to PHEVs, which account for 73% of all EV gross sales in Argentina, increased than in another nation.

Finally, we’ve got 5 nations — Mexico, Peru, Panama, Guatemala, and El Salvador — that are lagging behind both as a result of development charges are subpar regardless of first rate(ish) EV adoption or as a result of development charges, although spectacular in isolation, depart from such a low base that the ultimate consequence isn’t spectacular in any respect. Within the former group we’ve got Mexico, at an affordable 7.3% EV market share (3% BEV) however with a mere 24% development YoY; within the latter, we discover El Salvador and Peru, rising at charges of 117% and 175%, respectively, however with general market share at 0.25% and 1.2%, respectively. Guatemala and Panama, in the meantime, have the worst of each worlds: very low market share and sluggish development.

Ultimate ideas

When Mr. Trump began his warfare in Iran, many people predicted that the mom of all oil crises was coming. We had been incorrect, as is obvious, however because the warfare remains to be ongoing and the Strait remains to be closed, the more serious a part of the disaster may be delayed.

(On one other observe, I’ve been attempting to make sense of the oil market, as a result of nothing appears to make sense, and I believe an replace is due on that matter … maybe for later this month.)

Regardless, my level right here is that gasoline costs went up by a mere 15% — on common — within the area, whereas diesel costs did so by an equally unimpressive 20%. This, although related, isn’t sufficient to elucidate the huge development in Q2, and since there has not been any significant push from public coverage to advertise EVs this 12 months, we will conclude that the market has been rising for extra natural causes: primarily, the truth that EVs are cheaper than ever, that the charging community has been enhancing in most nations (with Chile and Brazil having a really strong one by now), and that new arrivals cater to extra particular tastes, offering ample selection for anybody who needs to change to an electrical automotive.

Nevertheless, to know what’s occurring, we have to look past the regional numbers and concentrate on one particular nation: Brazil. EV gross sales in Latin America grew by 108,000 12 months on 12 months, of which — get this — 66,666 had been in Brazil. Because of this near two-thirds of all development got here from this one nation, and on this case, it’s fully attributable to Brazil’s push for native EV manufacturing, which has ramped up considerably and now even provides some neighboring nations.

The EV push — in Brazil and in Latin America as an entire — is simply beginning, and developments within the second quarter of this 12 months make me hopeful that we’ll see quicker adoption than I as soon as believed. Keep tuned for future updates, and go away us your insights down within the feedback!

And keep in mind, you possibly can see all this knowledge and extra down on the Zero-Emissions Observatory for Latin America.