In Paraguay, eMobility is not only a more sustainable and economical option but also a key tool in combating corruption in the management of public fuels.
An angle that has been largely unexplored in the conversation about electric mobility in Paraguay is its potential to combat corruption in fuel management.
Javier Díaz, president of the Paraguayan Electric Vehicle Association (APVE), mentions that “fuel theft is a constant issue in both the public and private sectors,” and that eMobility could be an effective solution to this problem.
By eliminating the dependence on fossil fuels in public fleets, corruption related to the handling and theft of fuel would be significantly reduced.
Moreover, according to the APVE president, the use of electric vehicles would also allow for greater control and traceability of energy consumption, which would be a strong ally in the fight against corrupt practices.
“If the state starts enforcing the law, it would not only save on fuel costs but also tackle the corruption surrounding them,” he states.
eMobility Law: An Incomplete Legal Framework
Paraguay’s eMobility Law, in force since 2022, grants important fiscal incentives, such as tax exemptions for the import of electric vehicles and other economic benefits for users, including municipal tax exemptions and free tolls.
Javier Díaz points out that “the current law is only being implemented at 50%. The State is not making the purchases that the law obliges it to, and not all fiscal incentives have been budgeted for yet,” which hinders the law’s impact.
This lack of implementation is reflected in the absence of a real transition to electric fleets by the State, a clear obligation stipulated in the law.
The gradual replacement of combustion vehicles with electric ones should already be underway, but according to Díaz: “Despite the ample availability in the market, the State is not moving forward with replacing its fleet, as the law stipulates.“
It is worth noting that this significantly delays the progress of electric mobility in the country.
Progress in the Private Sector and the Supply of Electric Vehicles
Despite the challenges in the public sector, the private sector in Paraguay has shown great interest in electric mobility.
Currently, the country has a considerable supply of electric vehicles.
“Today, in Paraguay, there are over 18 different brands offering plug-in vehicles to their customers,” Díaz mentions, demonstrating that both demand and supply have grown in parallel.
The fact that half of these brands come from Europe and the other half from Asia reflects the appeal that the Paraguayan market holds for various international automakers.
Among the prominent brands are Audi, Porsche, BYD, Volkswagen, Hyundai, and Volvo, which, thanks to their local dealerships, are facilitating the entry of these vehicles into the country.
2025 Budget: The Key to Accelerating Electric Mobility in Paraguay
For Paraguay to fully reap the economic, environmental, and social benefits of electric mobility, it is essential that the State meets its legal obligations.
The full implementation of the eMobility Law and the transition of the public fleet to electric vehicles would not only contribute to the country’s sustainability but could also be a decisive factor in the fight against corruption.
Díaz stresses the importance of including all the fiscal incentives stipulated in the law in the 2025 General Budget, as well as allocating the necessary resources for the State to begin replacing its combustion vehicles.
“If the State fulfils these two points, there will be enormous changes in eMobility nationwide,” concludes the APVE president.