For a country with a burgeoning electric vehicle (EV) Market, making the correct policy, infrastructure, and production decisions now could spur adoption in the coming years. There have been early signs of industry growth, but adoption rates remain low. In 2022, fewer than 500 electric vehicles were sold in Argentina. However, the combination of new import policies, domestic manufacturing and charging companies, and the lessons learned from neighboring countries all point to a shift to electric vehicles in the coming years.
Argentina is one of many countries on the receiving end of the falling costs of Chinese-manufactured EVs. This has partly been the result of the Argentine government reducing tariffs on imported cars, allowing for the import of up to 50,000 electric and hybrid cars per year. While the import of cheap Chinese vehicles will undoubtedly boost the number of EVs in the country, there is fear that it will harm the new domestic manufacturing market. The largest current domestic manufacturer of EVs in Argentina is Coradir, which manufactures the Tito. This car is specifically designed for urban centers, with a maximum speed of 40 mph and a price of $15,000 USD. For urban centers with large populations and concerns about air quality, this could be an excellent product to increase scale. However, the low-cost imports could put significant pressure on the domestic manufacturing capabilities.
A conversation with Juan Manuel Baretto, President of Coradir S.A., which leads the charge for localized EV manufacturing in Argentina, outlined the availability of localized materials required, particularly lithium. Since Coradir was involved in the production of lithium-ion batteries prior to entering the EV production market, its familiarity with lithium supply chains is evident.
Meet EP Investing — capital discovery for the energy transition.
One method for Argentina to enhance its domestic production capabilities is by leveraging its substantial lithium reserves. Argentina possesses more than 10% of the world’s lithium reserves, and could leverage this into a battery manufacturing leader. By localizing lithium refinement, battery production, and subsequently electric vehicle (EV) manufacturing, Argentina would not be as heavily reliant on China for imports or refining.
Routes for increasing the share of EVs in Argentina can be derived from policies and market development in other Latin American countries. For instance, both Brazil and Mexico are experiencing increased foreign investment in their EV markets. Perhaps the most immediate way Argentina can also benefit from this investment is by developing a comprehensive policy approach. Both Brazil and Mexico use economic incentives, such as reducing tariffs on imports of complete vehicles, which offer the possibility for others to follow suit.
The most obvious entrant into the Argentinian market is Chinese EV giant BYD, which has already made significant inroads into Mexico and Brazil. In the case of Mexico, 40,000 BYD vehicles were sold in 2024, with plans to double the sales in 2025. Brazil, the largest market in the region, sold almost 80,000 BYD cars in 2024, and this number is expected to grow as BYD begins construction of a factory.
A report published by The World Bank Group focuses on methods for increasing the share of electric vehicles in Buenos Aires. One of the first ways this can be achieved is through the electrification of public transport, government fleets, delivery vehicles, and taxis. With Buenos Aires home to almost 40% of the country’s population and nearly half of its GDP, it is no surprise that it will be a centerpiece of the overall transition. By focusing first on public transportation and government vehicles, the government can demonstrate a commitment to EVs while simultaneously expanding the charging infrastructure.
The health benefits that could be seen through the adoption of cleaner vehicles are immense, specifically in dense urban areas such as Buenos Aires. The estimated cost of air pollution, through premature mortality and reduced productivity, was around 1.8% of Argentina’s GDP.
A conversation with Bruno Perez Almansi, a researcher and professor with significant experience in Argentinian vehicle markets, explained what he saw as the main hindrances to the further adoption of EVs. One of the most crucial is the political divisions and delays, which have resulted in several pieces of legislation. As Almansi explained, a bill intended to encourage sustainable mobility was stalled in Parliament due to political infighting.
National policies to encourage the adoption of vehicles could play a significant role in growing the number of EVs in the country. These policies include implementing objectives for sales, encouraging EV importing and special EV toll benefits, and renovations for publicly owned vehicles. Specific guidelines have also been implemented for the city of Buenos Aires, including requirements for 50% of buses to be either zero- or low-emission vehicles by 2030 and for all automobiles and buses to be zero- or low-emission by 2050. Modeling to predict the number of EVs that will be in use across Buenos Aires has shown that the estimate of EV sales by 2050 will range between 69-97%.
Creating a charging infrastructure is another crucial aspect if Argentina hopes to develop its industry. In conversation with Felipe Fischer, Chief Financial Officer of ChargeboxNet, he detailed the growth in the EV charging market despite the relatively low number of EVs currently in the country. Fischer explained that their agreements with dealerships, such as Ford and Renault, along with the membership model of selling charging time, have helped create their business. Despite the knowledge among local investors that EVs will continue to enter the market, Fischer explained that there remains a “wait and see” mentality.
Matias Gutman, a researcher and coordinator at Fundar, explained what he sees as the most fundamental deterrent to the development of the EV industry in Argentina. As Gutman explained, the lack of a national approach and pinpointing the specific needs of the Argentinian market for EV manufacturing are critical. To do this, Argentina could look to the work that Brazil did in creating a national industrial plan, which defined their desired vehicle type. Gutman then explained the challenge of adapting Argentina’s existing vehicle manufacturing industry to electric vehicles. This is due in large part to the number of pick-up trucks produced in the country, whose electrification is slower.
On the topic of building an EV charging infrastructure, Emiliano Tofolo, Commercial Manager at ChargeBox Net, explained that their first goal is to develop EV charging points in main areas across the country. This has thus far been cities and regions around such as Buenos Aires, Cordoba, and Mendoza. However, they have set a goal of installing enough charging stations at key locations to enable EVs to travel across Argentina. They have likewise begun working on charging for trucking, but the distances required and the spaces between ports have proven a challenge.
There is plenty to be optimistic about and reasons for concern regarding the EV market in Argentina. Lessons from Mexico and Brazil, access to raw materials, and encouraging imports may transition the current automotive industry into EV production. However, for this to occur, the government must develop a comprehensive EV approach and begin to build the infrastructure that the industry will require.
Meet EP Investing — the platform behind the stories.
1,300+ companies · 350+ investors · 47+ grants
