China leads electric car boom in Uruguay | economy

In a remarkable transformation within one of the wealthiest countries in South America, electric cars are flowing into Uruguay at an unprecedented pace, driven by tax exemptions and high fuel prices, which has strengthened the presence of Chinese brands in a market that had long been under the control of American and European companies.

A report published by Bloomberg states that Uruguay has become “the epicenter of the electric vehicle boom in South America,” with numerous models of Chinese BYD cars spread in the capital, Montevideo, along with dozens of American Tesla cars that roam the luxurious coast of Punta del Este, which is visited by celebrities every summer.

A quarter of new sales are electric

Data from the country’s Automotive Trade Association (ACAO) indicate that battery-powered electric vehicles accounted for “about a quarter” of sales of sports cars and trucks through October 2025, more than double their share just one year ago.

This percentage far exceeds the “single-digit” adoption rates in markets such as Colombia, Chile and even Brazil, where BYD vehicles are assembled.

This progress is linked to Uruguayan policies that provide a complete exemption from the “23% import duty” for electric cars, in addition to an exemption from the luxury goods tax of double rates, while the price of gasoline reaches “about $7.40 per gallon,” a cost that is considered a strong incentive for the transition to electric vehicles.

Chinese models have changed the rules of the game

According to Bloomberg, Rafael Rabiolio, head of Latin American research at BloombergNEF, believes that Uruguay provides a viable model for small countries that do not plan to build a local electric car industry.

The corporation expects sales of electric and plug-in hybrid cars to exceed “8% of total new sales in Latin America this year, meaning more than 400,000 vehicles,” up from about 2% in 2023.

“If the Chinese had not been there, I’m not sure we would have seen this shift happening recently in Latin America,” Rabiulio said.

Chinese brands such as BYD, JAC, and Omoda account for “about 90%” of the total electric cars, which numbered about 11,000 vehicles this year in Uruguay.

BYD’s popular Seagull model sells for just under $20,000, a price comparable to small gas-powered cars.

User Experience: Big savings

Bloomberg monitors the experience of citizen Maria Clara Solé (36 years old), who drives up to 60 kilometers daily in Montevideo using her BYD Yuan Pro car, which she bought with her husband last year for about $31,000.

Solé says she saves “up to $400 a month” by charging the car at home instead of filling up with gas.

Despite this, Solé still keeps a gasoline-powered car with her husband “for long trips,” explaining: “We are not ready to completely switch to electricity… and there is still a state of uncertainty, especially if you want to travel to Argentina or Brazil.”