BYD Stock Dominates Uruguay's Surging EV Market as Costly Gasoline Pushes Drivers to Switch
BYD is leading Uruguay's shift to electric vehicles, driven by high gasoline prices and tax incentives. Battery-electric vehicles account for a quarter of new car sales, with BYD's affordable models dominating. Chinese automakers, led by BYD, make up 90% of EV sales. Uruguay's model, combining tax breaks and a growing charging network, is seen as a blueprint for other Latin American markets.
Uruguay has become the unlikely center of South America's electric-vehicle shift, and Chinese automaker BYD (BYDDY) (BYDDF) is emerging as the clear winner.
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Battery-electric vehicles made up about a quarter of all new car and SUV sales through October, more than double last year's share, according to data from industry group Acau. Much of that growth is coming from BYD's expanding lineup, now a common sight across Montevideo and the upscale coastal city of Punta del Este.
BYD Leads China's Charge into Uruguay
Chinese automakers, led overwhelmingly by BYD, accounted for around 90% of the roughly 11,000 battery-electric cars and SUVs sold this year. BYD's sub-$20,000 Seagull has become one of the country's most popular entry-level EVs, matching the price of many gasoline hatchbacks while offering significantly lower operating costs.
Uruguay's generous tax incentives have been critical. The government exempts EVs from a 23% import duty and waives the excise tax that typically hits gasoline cars with double-digit rates. Meanwhile, pump prices hover around $7.40 per gallon, making the economics of switching stark.
"I save up to $400 a month by charging at home instead of filling a tank," said Maria Clara Sole, who drives a BYD Yuan Pro for her daily commute. "That made the decision very easy."
Uruguay Builds a Model Other Latin American Markets Could Follow
BloombergNEF analysts say Uruguay's model, which combines tax breaks, high gas prices and a growing charging network, shows how smaller markets without domestic auto manufacturing can rapidly accelerate EV adoption.
Affordable Chinese models have been the "game changer," said BNEF's Rafael Rabioglio. "If it wasn't for the Chinese, I'm not sure we would have seen this transition happening recently in Latin America."
BYD Outpaces Western Rivals
Traditional automakers like Ford (F), Fiat and Toyota (TM) still dominate the broader auto market, but in EVs they are far behind BYD's momentum. Even Tesla (TSLA), despite drawing interest from Uruguay's wealthiest buyers, remains a niche presence with only 152 sales since 2020.
BYD's footprint, however, is expanding across income levels. From the mass-market Seagull to the higher-priced Yuan Pro, its vehicles have become daily drivers for commuters, families and cross-city travelers.
Consumers like Sole say they still keep a gasoline vehicle for long-distance travel to Brazil or Argentina, where charging networks lag. But within Uruguay, the economics overwhelmingly favor electric, and BYD is capturing that shift more effectively than any other brand.
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