Latin America chooses electric vehicles: how Chinese brands are capturing the market
The cost of refueling in the US has risen sharply in the first months of 2026, including two weekly jumps of 25 cents each, which raised the national average price to $4.51 at the time of publication. This problem is not local. Fuel prices have soared in almost every country and seem likely to remain high for the foreseeable future.
So, when the outlook for 2026 regarding fuel costs is bleak, and for 2027 not much better, what could be the solution? Many people around the world are choosing electric vehicles. New car buyers in countries where consumers are more price-sensitive are happily switching to electric, greatly facilitated by affordable models from Chinese automakers.
Sales surge in developing markets
In Latin American countries, Africa, and much of Asia (markets that receive much less attention than the US, Europe, or China), electric vehicle sales in March rose 79% compared to the same month last year, according to data from research firm Benchmark Mineral Intelligence. For the full year 2025, the same group of countries showed growth of 48%.
Chinese brands gain momentum
Costa Rica, where the average gasoline price is $1.61 per liter or $6.09 per gallon, compared to the global average of $1.46 per liter or $5.53 per gallon (according to Globalpetrolprices), is one such leading country. According to The New York Times, Costa Ricans buy more electric vehicles per capita than almost any other country in the Western Hemisphere. Chinese brands such as Geely and BYD have quickly captured the market, and electric vehicles accounted for 18% of all car sales in the country in the first three months of 2026.
Katia Cambronero, a member of the Legislative Assembly of Costa Rica, noted that this “gives Costa Rica energy sovereignty.” This means the country does not need to rely too heavily on crude oil imports, reducing dependence on a commodity whose prices are currently fluctuating sharply. Last month, Cambronero pushed through legislation accelerating the construction of electric vehicle charging stations in the country, further strengthening the transition to electric transport.
Costa Rica as a case study
Costa Rica is a perfect example of what happens when there are no restrictions on the import of Chinese electric vehicles. Buyers in the United States do not have access to these inexpensive yet technologically advanced and well-assembled cars due to bipartisan opposition. The same applies to other countries that do not have such tariffs, where cars from BYD, MG, Geely, and many others, including sub-brands sold by these major Chinese automakers, can be found.
According to a survey of members of Asomove, the Costa Rican electric vehicle association, 70% of respondents cited cost as the main reason for switching to electric vehicles. They switched to electric transport simply because it was cheaper to operate an electric car, leading to cost savings. This is important because, while Costa Rica is wealthy by Central American standards, its per capita income is about a quarter of that in the United States. That is why the country has at least three models of Chinese electric vehicles selling for less than the equivalent of $20,000.
Furthermore, Costa Ricans have short commutes, which is an ideal environment for electric vehicles. Short trips in city traffic can significantly worsen fuel economy in a gasoline or diesel car, whereas electric vehicles thrive in such conditions thanks to factors like regenerative braking. This allows recovering some energy back into the battery during deceleration and braking, a feature also present in most hybrids. But the government also helps with the transition, offering certain tax and fee exemptions since 2018 to attract more buyers to electric vehicles.
However, not everything has been smooth. The electric vehicle infrastructure in the South American country is struggling to keep pace with the adoption rate. At the Croc Skywalk tourist stop south of San Jose, two of the most powerful chargers stood idle because the plugs did not fit the Chinese cars that make up the majority of the country’s electric vehicle fleet. There are also concerns about the overall electrical grid and whether it can handle the additional load that an increasing number of electric vehicles will bring.
But Costa Rican consumers are not alone in their choice. Billions of people in these markets are coming to the same conclusion: an electric car, especially a cheap Chinese one, is more financially advantageous than filling up the tank weekly at prices that show no signs of decreasing.
The situation in Costa Rica demonstrates how the absence of trade barriers can dramatically accelerate the adoption of electric vehicles, especially in regions with high price sensitivity. Although infrastructure issues, such as charger incompatibility and grid strain, remain challenges, the economic benefit for consumers proves to be a more powerful incentive. This example could serve as an important lesson for other countries considering strategies for developing electric transport, particularly in the context of global fuel price increases.