Latin America took Chinese brands early — Chery has deep roots here — and is now a localisation frontier, with plants and CKD assembly spreading from Brazil outward.

Mexico: the tariff turning point

Latin America adopted Chinese brands early and is now a localisation frontier. Mexico is the largest market and the region's biggest inflection point: roughly 306,000 China-made light vehicles sold in 2025, about 19% of total sales, with BYD the largest Chinese participant. But under US pressure, Mexico imposed a 50% duty on cars from non-FTA countries — mainly China — from January 1, 2026. Imports fell sharply in early 2026, though Chinese-brand sales still rose in Q1 on stockpiled inventory, and BYD shelved its planned Mexican assembly plant in response.

The open Pacific markets

Chile has the region's highest Chinese penetration: Chinese brands topped 100,000 units in 2025 and, together with other Asian marques, accounted for roughly 72% of sales — surpassing Japanese and Korean brands for the first time. MG leads Chinese brands there, with BYD prominent in EVs. Colombia's market grew strongly in 2025, with BYD entering the top ten and taking more than half of EV and PHEV sales, while Chery, Changan/Deepal and MG posted triple-digit growth. Peru is being reshaped by the Chinese-built Port of Chancay, which is halving shipping times and turning the country into a regional distribution hub, with BYD driving an EV and hybrid surge.

Argentina and the EV opening

Argentina moved in 2025 to publish duty-free import quotas for electrified vehicles, with approved Chinese brands including BYD, Leapmotor, MG and Lynk & Co, while Chery, Changan, Haval and MG gain share on price and technology. Across the region, most Chinese volume is still ICE and hybrid SUVs, but BYD leads EVs in several markets. The dividing line is policy: Mexico's 50% wall stands in sharp contrast to the open, low-tariff markets of Chile, Peru and Colombia and Argentina's new EV quotas.

Figures are 2025 full-year and early-2026 (sources: national registration data, local media). Brazil is covered on its own page.

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