Mobility Portal, Spain
Date: June 21, 2024
Angeles Fonti
By Angeles Fonti
Latin America

Electric vehicle sales rise 20%: Does the Free Trade Agreement with China have an impact?

During the first five months of the year, 904 electric vehicles were sold in Ecuador. The role of new legislation and its impact on automakers' daily operations. What do sales figures for 100 per cent electric segments reveal?
Electric vehicle sales rise 20%: Does the Free Trade Agreement with China have an impact?
BYD Ecuador remains in the number 1 position for best-selling Chinese brands.

In May, when Ecuador’s Free Trade Agreement (FTA) with China came into effect, electric vehicles showed year-on-year growth of 19.6 per cent.

In the first five months of the year, 904 electric vehicles were sold in Ecuador, of which 156 were acquired in May alone, according to data from the Association of Automotive Companies of Ecuador (AEADE).

By putting the tax reforms and the FTA on the table, it is expected that the new legislation will have a direct impact on the electromobility sector and achieve a rebound effect on Chinese automotive companies so that their presence in the country is increasingly greater. 

Indeed: Will tax reforms and tariff exemption policies be key factors for the advancement of electromobility from now on? How do they impact the daily operations of the automotive market?

BYD Ecuador remains the leader in the Chinese electric car market with 209 patents to date. 

This new legislation opens a range of possibilities from the exemption of tariffs, which allows new investments, thus becoming an ideal scenario for the consolidation of Asian automotive companies.

However, Jorge Burbano, Country Manager of BYD Ecuador, believes that the FTA does not have a great impact on the day-to-day life of already consolidated automotive companies.

“Since the free trade agreement for BYD Ecuador itself, not much has changed because electric vehicles have already been exempt from VAT and tariffs for a long time. The same applies to batteries and chargers,” he notes.

At the same time, it highlights the important role that differentiated electricity rates play in promoting electromobility.

According to Mobility Portal Latin America, ten years after its implementation, there are almost 600 owners who enjoy the benefit.

Returning to the best-selling brands, Leapmotor is in second place, with 55 sales.

Dongfeng follows with 18 units sold and Skywell with 18.

Until then, the panorama is the same as the previous month, but a new competitor emerges in the ranking: the Chinese automaker Neta rises with 7 total units, equaling DFSK.

Are there new players in the Ecuadorian automotive market for electric vehicles?

In addition to the market leaders mentioned, other brands such as Yuancheng, Avantier, Zedriv and GMC are beginning to resonate in the Ecuadorian market, even with very low sales.

Brands such as Jinma, Jinpèng, Voyah, Jac, Changan, Farizon and Jiayuan are also present, although with still modest sales until May 2024.

An interesting fact to highlight is the symbolic start of the FTA with the landing of a batch of 69 Chery vehicles.

The automaker announced the intention to export more than 6,000 cars, with a total value estimated at 83 million dollars.

Its strategy includes the introduction of two new zero-emission models: the Tiggo 7 in its plug-in hybrid version and the fully electric S56

Cai Wenwen, Chery representative, announced that around 21,000 dollars will be saved for each vehicle exported to Ecuador.

Even so, in the latest sales report, the Chinese automaker presents only one sale in the month of January.

What other brands do Ecuadorians choose when buying an electric vehicle?

In May, 156 electric automobiles were sold, 24 fewer sales than the same period of the previous year.

Likewise, during the first five months of the previous year, 756 sales were detailed, 19 per cent less.

The first three places are made up of Nissan with 418 sales, BYD Ecuador with 209 and Kia with 81.

Among the most popular automobile companies are DongFeng, Skywell, MG and Neta.

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