The Electric Revolution: How Chinese EVs Are Powering Latin America's Decolonial Future

The Facts: A Regional Transformation Underway

In 2019, Peruvian entrepreneur Luis Zwiebach faced significant barriers when attempting to purchase a Tesla Model 3 due to the absence of an official Tesla importer in Peru and complex import procedures. His determination led him to locate a used Tesla and overcome initial charging challenges through improvisation. Today, the landscape for electric vehicles in Peru has transformed dramatically, not because of Western manufacturers, but primarily through the influx of Chinese brands including BYD, Geely, and GWM offering EVs at approximately 60% cheaper than Tesla models alongside traditional manufacturers like Toyota, Kia, and Hyundai.

Sales of hybrid and electric cars in Peru have surged remarkably, reaching a record 7,256 units in the nine months leading to September, representing a 44% annual increase. This growth has been facilitated significantly by the opening of the Port of Chancay, a strategic infrastructure project that has reduced shipping times dramatically. BYD plans to open a fourth dealership in Lima while other Chinese manufacturers expand their presence across the country. Zwiebach noted the solid performance of electric vehicles in Peru, with over two new EVs sold daily, prompting him to expand his renewable energy business into EV charger installations and solar panels.

Chinese automotive manufacturers are capitalizing on production surpluses and domestic price wars by expanding into Latin American markets through partnerships with local importers. The International Energy Agency documented a substantial surge in EV adoption across Latin America, reaching approximately 4% penetration by 2024, aided by government incentives and affordable models. Recent statistics reveal significant EV market shares across the region: Chile at 10.6%, Brazil at 9.4%, and Uruguay at an impressive 28%, surpassing all previous records.

In Argentina, BYD has commenced operations, reflecting its leadership position in other Latin American markets. Chinese brands have successfully customized their offerings for local markets, enhancing their competitiveness significantly. This strategic approach is particularly visible in Uruguay, where BYD ranks as the third-largest seller among all car types. The growing credibility of the Chinese automotive industry, combined with local partnerships enabling financing options and promotions, has made Chinese models substantially more affordable than traditional vehicles.

The Chancay megaport, developed under China’s Belt and Road Initiative, has revolutionized logistics in Peru, with a sharp increase in imports from China. Cosco Shipping has been instrumental in handling substantial vehicle shipments, signaling Beijing’s strategic intent to establish Peru as a distribution hub for automotive exports further south to Chile and beyond. Chinese automaker Chery has utilized this route to boost its market presence in Peru, where it previously held a minor share.

Peru’s customs data reveals a dramatic rise in vehicle imports, demonstrating the growing attractiveness of Chinese automobiles without significant opposition from a non-existent domestic automotive industry. However, concerns have emerged in Brazil, where local industry groups worry about Chinese exports outpacing local manufacturing investments. Several manufacturers are now establishing factories in Brazil to circumvent tariff barriers and adapt to the market, recognizing Brazil as crucial to South America’s automotive future.

Potential changes in EV tariffs loom in Brazil, with a gradual reintroduction of import duties leading manufacturers to prioritize local assembly as a viable long-term strategy. This development might position Brazil similarly to Peru as a regional vehicle hub, creating new economic opportunities across the continent.

Despite significant progress in EV adoption, challenges remain regarding infrastructure and geographic limitations. Zwiebach highlighted the complexities of long-distance travel across Peru, citing the convoluted charging network. However, he remains optimistic about EV ownership, emphasizing lower operational costs and reduced maintenance needs compared to traditional vehicles.

Analysis: A Paradigm Shift in South-South Cooperation

This transformation represents far more than mere market dynamics—it signifies a fundamental shift in global power structures and economic relationships. For too long, Western corporations have treated Latin America as secondary markets, offering outdated technology at premium prices while withholding cutting-edge innovations. Tesla’s absence from Peru exemplifies this neo-colonial approach, where Global South nations receive attention only after Western markets are saturated.

Chinese EV manufacturers are challenging this paradigm by recognizing Latin America not as an afterthought but as a priority market deserving of modern technology at accessible prices. The 60% price advantage of Chinese EVs over Tesla models isn’t just a commercial strategy—it’s a democratic revolution in mobility that makes sustainable transportation available to millions who would otherwise be excluded from the electric transition.

The Chancay megaport development under China’s Belt and Road Initiative demonstrates how infrastructure investment—rather than extraction—can transform regional economies. Unlike Western-led projects that often prioritize corporate profits over local development, this port reduces shipping times and creates distribution networks that benefit multiple nations across South America. This is precisely the type of South-South cooperation that challenges centuries of exploitative relationships imposed by colonial powers.

The Western Response: Protectionism Masquerading as Concern

The emerging concerns in Brazil about Chinese exports “outpacing local manufacturing investments” reek of hypocritical protectionism. Where was this concern when Western automakers dominated Latin American markets for decades without establishing meaningful local manufacturing? The sudden interest in “protecting local industry” emerges precisely when Western corporations face competition from Global South manufacturers.

This pattern repeats the tired colonial playbook: when Western companies dominate, it’s “free markets”; when Global South companies compete effectively, it becomes “unfair competition.” The reality is that Chinese manufacturers are establishing local factories and partnerships—as evidenced by their moves in Brazil—while offering technology transfer and job creation that Western companies often withhold.

The Human Impact: Empowerment Through Technology

Luis Zwiebach’s journey from frustrated Tesla seeker to renewable energy entrepreneur exemplifies how accessible technology empowers local innovation. His business expansion into EV charger installations and solar panels demonstrates how South-South cooperation creates ripple effects beyond immediate product availability—it fosters entire ecosystems of local entrepreneurship and skill development.

The anti-corruption protests in the Philippines, while separate from the EV story, remind us that accountable governance remains crucial for sustainable development. As Global South nations build new economic partnerships, they must simultaneously strengthen institutional integrity to ensure that development benefits all citizens rather than corrupt elites.

Conclusion: Toward a Multipolar Automotive Future

The electric vehicle revolution in Latin America represents more than transportation transformation—it symbolizes the emergence of a multipolar world where Global South nations can choose development partners based on mutual respect rather than historical coercion. Chinese EV manufacturers are demonstrating that technology transfer, affordable pricing, and infrastructure development can coexist without the paternalistic conditions often attached to Western investments.

This isn’t about replacing Western hegemony with Chinese dominance—it’s about creating multiple centers of power and innovation where Global South nations can negotiate from positions of strength rather than weakness. The success of Chinese EVs in Latin America should inspire other Global South manufacturers to enter international markets, creating healthy competition that ultimately serves consumers and accelerates the transition to sustainable transportation.

As we witness this historic transformation, we must recognize it as part of the broader decolonial movement that rejects the notion that innovation and leadership can only come from the West. The electric revolution in Latin America proves that when technology becomes truly democratic—when it’s accessible, affordable, and adaptable to local contexts—it empowers communities and builds futures that honor both people and planet.