"Peace is, and always has been, the ultimate human aspiration." - Javier Pérez de Cuéllar (Former Secretary-General of the United Nations)

MARKETS

May 15, End Of Day

• Argentina
  • S&P MERVAL Index = 2,298,473.10 (YTD = -9.28%)
• Brazil
  • BOVESPA Index = 139,334.38 (YTD = 15.84%)
• Chile
  • S&P IPSA Chile = 4,400.22 (YTD = 21.73%)
• Colombia
  • MSCI COLCAP = 1,666.85 (YTD = 20.82%)
• Mexico
  • IPC Mexico BMV = 57,959.72 (YTD = 17.43%)
• Peru
  • S&P/BVL Peru = 30,800.25 (YTD = 6.35%)

BUSINESS

Latin America Doubles Down on Electric Vehicles, Powered by Chinese Imports and Local Policy Push

Electric vehicle adoption in Latin America is (late, but fast) taking off. While still a small share of the global EV market, the region saw sales volumes and market shares more than double in 2024. This growth was fueled by a combination of favorable import policies, rising fuel prices, and affordable Chinese models.

• Brazil led the charge with nearly 125,000 EVs sold in 2024, more than twice the 2023 total, pushing its market share to 6.5%.
• Costa Rica (15%), Uruguay (13%), and Colombia (7.5%) posted the highest penetration rates, driven by strong tax and registration incentives.
• Across the region, EV sales share reached 4% in 2024, up from 2.5% in 2023.

The surge in adoption has been powered by Chinese automakers, who now dominate Latin American EV imports.

• In Brazil, 85% of EVs sold in 2024 were Chinese models.
• The price gap between EVs and conventional cars dropped from over 100% in 2023 to just 25%, thanks largely to Chinese imports.
• Chinese automakers BYD and GWM are setting up local production to meet demand ahead of Brazil’s import tariff reinstatement by 2026.

Affordability remains a barrier in most Latin American markets, but it’s improving:

• Tax exemptions, reduced fees, and traffic privileges have been critical in countries like Costa Rica and Colombia.
• Mexico and Brazil are positioned to become regional manufacturing hubs, supported by both Chinese and local investment.

Despite growing demand, charging infrastructure and local battery manufacturing remain weak points:

• Most countries lack sufficient public charging networks, especially beyond urban areas.
• There are few battery supply chain investments compared to Asia or Europe, limiting local value capture.

CURRENT AFFAIRS

Brazil: During President Lula’s visit to China, Brazil secured a $1 billion investment from Envision Energy for sustainable aviation fuel and signed 20 new agreements, including expanded agricultural exports and tech partnerships. Lula and Xi Jinping pledged to defend free trade and oppose protectionism, emphasizing cooperation on climate, infrastructure, and innovation. Chinese companies also announced billions in new investments across Brazil in energy, transport, and manufacturing.

Argentina: Fitch upgraded Argentina’s credit rating from CCC to CCC+ following a $20 billion IMF program and the easing of currency controls. The measures have improved liquidity and supported faster-than-expected disinflation and recovery. While austerity has brought economic stabilization, it has also sparked mass protests.

Uruguay: Former President José “Pepe” Mujica has died at 89. A former guerrilla turned progressive icon, Mujica was known globally for legalizing cannabis, championing civil liberties, and living humbly in a flower farm with his wife. Leaders across Latin America mourned his passing, remembering him as a defender of democracy and social justice.

FURTHER READING

Check our recently published insights here.

🤖 The Potential of Robotic Process Automation in Latin America

• Rising Adoption – RPA use jumped from 11% to 17% in 3 years, driven by post-pandemic digital transformation.
• Sector Leaders – Banks like BAC Credomatic and governments like Uruguay’s are using RPA to boost efficiency and service quality.
• Real Benefits – Organizations report 12%+ gains in digital services and up to 75% time savings in public administration.

📖 Read more here.