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Latin America’s EV Boom Fueled by Cheap Chinese Cars

New York Times Business •
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Electric cars are surging in Costa Rica and a swath of Latin American, Asian and African markets as motorists flee record gasoline spikes. A week‑long visit to the Croc Skywalk revealed rows of Chinese‑built BYD and Geely models, many sporting green licence plates that signal zero‑emission status. In March, EV registrations in the “rest of world” jumped 79 % dramatically year‑on‑year, according to Benchmark Mineral Intelligence.

During the first quarter, EVs accounted for 18 % of all new car sales in Costa Rica, outpacing the United States threefold. Government incentives introduced in 2018—tax waivers and fee exemptions—have drawn consumers whose primary motive, per the local association Asomove, is cost savings for families rather than environmental concern. Three Chinese models retail for under $20,000, making them competitive with legacy brands.

Utilities are scrambling to match demand; Grupo ICE plans new solar capacity while most owners charge at night to exploit lower rates. Infrastructure glitches persist—European‑style plugs often mismatch Chinese vehicles, prompting ad‑hoc adapters at tourist sites. Nonetheless, the market shift forces traditional dealers to reassess inventory as Chinese EVs dominate Costa Rica’s streets.