Uruguay Leads Latin America in Electric Vehicle Adoption

Uruguay stands out in South America for its impressive adoption of electric vehicles (EVs), achieving the highest per capita rate in the region.

According to a report from the Latin American Energy Organization (Olade) released on January 16, 2025, Uruguay’s commitment to electric mobility has propelled it ahead of larger nations like Brazil and Mexico.

The data reveals that Uruguay boasts approximately 5,950 registered electric vehicles, translating to 17.4 EVs for every 10,000 residents. In comparison, Costa Rica follows with 34.3 electrified vehicles per 10,000 inhabitants.

This demonstrates a significant shift in consumer preferences towards sustainable transportation options. Government initiatives play a crucial role in this growth.

The Uruguayan Ministry of Industry, Energy, and Mining (MIEM) launched the Subite program to promote electric vehicle adoption. This initiative offers financial incentives, including tax exemptions and rebates for electric vehicle purchases.

Uruguay Leads Latin America in Electric Vehicle Adoption. (Photo Internet reproduction)

By eliminating the Specific Internal Tax (IMESI) for EVs until August 2025, the government encourages consumers to transition from traditional combustion engines. The market for battery electric vehicles (BEVs) has seen remarkable growth.

Uruguay’s Electric Vehicle Surge

In June 2024 alone, Uruguay recorded a staggering 477% year-on-year increase in BEV sales, reaching a market share of 15%. This surge highlights a growing acceptance of electric vehicles among consumers who increasingly prioritize lower emissions and reduced operating costs.

BYD dominates the Uruguayan EV market, capturing about 70% of total sales in early 2024. This Chinese automaker has established a strong presence in the country, significantly outpacing competitors like JAC and Volvo.

The rapid rise of BYD reflects not only consumer demand but also the effectiveness of government policies supporting electric mobility. Uruguay’s commitment to renewable energy further enhances its position as a leader in electric vehicle adoption.

The country generates over 98% of its electricity from renewable sources such as wind and hydropower. This clean energy supply makes charging electric vehicles more sustainable and economically viable.

The expansion of charging infrastructure complements this growth. Uruguay has installed over 332 charging stations nationwide, with plans to increase this number significantly.

The state-owned utility company UTE aims to establish a charging point every 50 kilometers along major routes, ensuring accessibility for all EV users.