Retrofit, the process of converting combustion-engine vehicles to electric, is emerging as an attractive alternative in Latin America due to the high costs of new electric vehicles (EVs).
However, the development of this practice faces a major obstacle: the absence of regulations in most countries across the region.
While some governments are slowly advancing regulations, others have yet to define a clear legal framework, leaving workshops and users in regulatory uncertainty.
Mobility Portal Latinoamérica presents a country-by-country analysis of the current state of retrofit in the region.
Argentina: Progress in Regulation, But Safety Standards Still Lacking
Argentina is one of the most advanced countries in retrofit regulation.
The National Directorate of Motor Vehicle Registration (DNRPA) currently allows the registration of converted vehicles, a regulation promoted by the Argentine Chamber of Electric and Alternative Vehicles (CAVEA).
Additionally, the National Institute of Industrial Technology (INTI) is working on defining technical standards to ensure best practices in conversions.
However, no specific safety regulations have been approved yet, creating uncertainty in the homologation process for converted vehicles.
To boost the sector, the Secretary of Energy recently removed the National Charging Infrastructure Registry, reducing bureaucratic barriers in the electric vehicle market.
Brazil: Conversions in Progress, But No Regulation
Brazil does not yet have a specific regulation for converting combustion-engine vehicles to electric, although several workshops are already performing these modifications.
Despite the lack of legislation, the country is promoting incentives for sustainable mobility through the “Mover” program, which provides tax benefits to the electric and hybrid vehicle industry.
Chile: A Regulatory Void Slows Down Conversions
Chile currently lacks official regulations for retrofit, despite efforts to establish a legal framework.
In 2023, the Ministry of Energy, the Superintendency of Electricity and Fuels (SEC), and the Electric Vehicle Association of Chile (AVEC) proposed a regulation to govern conversions.
However, the Comptroller General’s Office rejected the proposal, arguing that the Ministry of Transport lacks the authority to approve retrofit workshops.
This regulatory vacuum leaves companies and workshops in limbo, without a legal framework to ensure safety and quality standards in conversions.
Colombia: Private Sector Advances, But No Legal Framework
Colombia has no official regulations for retrofit, creating uncertainty for industry growth.
Despite this, some companies have opted for self-regulation, following a technical standard developed in collaboration with the Economic Commission for Latin America and the Caribbean (ECLAC).
However, this standard is not officially recognised, leaving the sector in regulatory uncertainty.
The private sector is pressuring the Ministry of Transport to establish clear guidelines, but so far, no formal progress has been made.
Mexico: An Emerging Sector Without Regulatory Support
Mexico also lacks specific regulations for retrofit, with safety concerns being a major issue.
Without clear legislation, conversions vary in quality and may pose risks to users.
Although some workshops have begun offering electric conversions, the retrofit market in Mexico is still in its infancy and lacks government incentives or support to drive mass adoption.
Peru: Law Proposal on Hold While Natural Gas Dominates
Peru currently lacks a legal framework for converting vehicles to electric.
However, in 2024, the Association of Electric Mobility Companies (AEDIVE) proposed a bill to regulate retrofit.
The initiative seeks to establish safety and quality standards for converting gasoline, diesel, and natural gas vehicles to electric, with a focus on taxis, public transport, and logistics fleets.
Despite this proposal, the bill has yet to be approved.
Meanwhile, natural gas vehicle (NGV) conversions continue to dominate the market. In the first six months of 2024, more than 21,000 vehicles were converted to NGV, far surpassing electric vehicle sales.
Uruguay: A Retrofit Pioneer, But Is Regulation on the Way?
Uruguay has no specific legislation for vehicle conversions, but the country has been a pioneer in retrofit initiatives.
Since 2000, the Autolibre organisation has worked on converting traditional vehicles to electric.
In 2022, the government introduced Plan MOVES, a roadmap outlining measures through 2025.
This plan includes:
- The creation of a regulatory framework for conversions.
- Tax incentives for retrofit projects.
- A specific tax structure for the sector.
By 2025, Uruguay plans to implement stricter controls on converted vehicles, including:
- Technical inspections (ITV).
- Accreditation of authorised workshops.
- Monitoring of workforce training.
Uruguay could soon lead Latin America in retrofit regulations.
