Latin America EV Market Reaches New High as Q4 2025 Sales Top 110,000

Latin America finished 2025 with a meaningful end‑of‑year acceleration: Q4 registrations exceeded 110,000, pushing full‑year electrified vehicle sales past 350,000 and raising the region’s electrified market share to roughly 5.6% for the year (about 6.6% in Q4). The quarter’s gain was concentrated in battery‑electric vehicles, which provided most of the incremental volume, while plug‑in hybrid performance varied widely by market — notably volatile in Mexico. Brazil and Mexico together accounted for roughly four‑fifths of regional sales, a concentration that biases aggregate results toward the PHEV‑tilted mixes observed in those larger markets. Several smaller markets delivered outsized percentage growth — Uruguay, Colombia, Paraguay and Ecuador roughly doubled or nearly doubled year‑on‑year sales — and country‑level policy moves (for example gasoline subsidy reform in Ecuador and Bolivia, and Chile’s fast public‑transport electrification) further shaped local demand patterns. A proximate driver of the uptake was the arrival of low‑cost Chinese models, whose aggressive pricing and broad model lineups narrowed the price gap with ICE vehicles and made BEVs viable for more mainstream buyers across multiple segments. That supply‑led dynamic appears to be portfolio‑based rather than the result of a single breakout model, mirroring developments seen in other regions where scale, value and variety matter as much as policy. Early owner feedback from other markets — and initial experiences from recent entrant launches — point to typical new‑model teething issues around software, mapping and third‑party charger compatibility, and to the emergence of owner communities and digital support networks that help bridge after‑sales gaps. These realities underline the need for faster dealer, warranty and OTA‑service onboarding, and for public‑charging interoperability as lower‑cost EVs push more mainstream buyers toward shared charging. Operationally, the region faces near‑term constraints on delivery timing, inventory management and homologation capacity as demand surges and import/tariff regimes shift (including recent policy moves in Mexico). For manufacturers and suppliers, the current environment rewards flexible production or supply arrangements and business models that prioritize local availability and affordable pricing; legacy brands that cannot adapt on price, speed to market and service risk losing share. Beyond direct sales impacts, the inflow of affordable EVs will have second‑order effects on residual values, used‑car markets and fleet financing assumptions, prompting lenders and fleet operators to revisit depreciation and asset‑lifecycle models. Taken together, Latin America’s 2025 outcome positions the region for continued growth into 2026, but the distribution and durability of that expansion will hinge on after‑sales scaling, charging infrastructure roll‑out, stable regulatory frameworks and manufacturers’ ability to manage inventory and service networks at scale.