EV maker Tesla (TSLA) is failing to create a carnival atmosphere for itself in South America as it continues to cede ground to Chinese rivals.
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According to a Reuters article, a flood of Chinese models from the likes of BYD (BYDDY), Geely (GELYF) and GWM (GWLLF), selling at 60% cheaper than a Tesla, are meeting the growing demand for EVs in countries like Peru.
Lima Leap
EVs, according to the Peruvian automotive association, are still few on the ground in the country but they are on the rise. Sales of hybrid and electric vehicles hit a record 7,256 units in the nine months to September this year, up 44% on the same period in 2024.
China has been ramping up sales since the opening last year of the Port of Chancay, north of Lima. This has helped Chinese manufacturers avoid rising trade barriers in the United States and Europe.
BYD plans to open a fourth dealership in Lima by the end of this year, while Chery and Geely have more than a dozen in total in Peru.
Tesla’s failure to open a showroom in Peru’s capital Lima is making the Chinese group’s sales chat that much easier.
Chile Reception
It’s not just restricted to Peru. Chinese brands reached 29.6% of all new passenger car sales in Chile in the first quarter of this year.
Martin Bresciani, president of Chile’s automotive business chamber, CAVEM, said: “The Chinese have carved out space across both electric and petrol-powered cars. They have already demonstrated that they match global standards in quality.”
BYD also leads electric car sales in Brazil, where it launched a production factory this summer, Colombia, Ecuador and Uruguay and recently launched in Argentina.
Tesla’s sales have struggled this year around the globe as a result of more intense competition and, in some markets, a negative reaction to the political antics of chief executive Elon Musk.
This will concern Tesla and its investors, but the company is also much more than an EV maker nowadays with a string of ventures from humanoids to battery storage in its growing ecosystem.
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