Colombia’s EV Market Grew 23% in Q1 & Reached 4% Market Share in March

The first trimester is over, and countries are starting to present their official data for vehicle sales during the first three months of the year. Colombia, one of the leaders for EV sales in the region last year, started this year with reasonable growth amidst a generalized crisis in the vehicle sector that has been ongoing for two years now, with no end in sight. It’s almost certain that by now, we have hit peak ICE in this country.

Price reductions have become common in the EV landscape, with some models falling as much as 20% in the last couple of months. These include the Chevy Bolt and Kia Niro (currently at $42,000 after a 20% reduction), the pickup truck Dongfeng Rich-6 (currently at $48,750 after an 18% reduction), and the JAC E10X (currently at $22,300 after a 15% reduction), among others. Unfortunately, ICEV models have also seen price reductions in response to a stagnant market and the need for dealers to clear inventory.

Despite these reductions in both ICEVs and EVs, only EVs saw significant growth, increasing by 23% while the overall market fell by 14%. This growth has allowed EVs to increase their market share from 2.4% in Q1 2023 to 3.4% in Q1 2024, reaching 4% in March. This growth is happening before the arrival of major players like the Volvo EX30, the Tesla Model 3, and the BYD Seagull (Dolphin Mini), which has already made an impact in other markets.

EV sales overview

Colombia’s market is relatively small, with only 994 BEVs (2.4%) and 403 PHEVs (1%) sold out of a total of 40,567 light and heavy vehicles in Q1 2024. Sales have been increasing as prices continue to drop, and the introduction of popular and affordable models in the coming months is expected to further accelerate this trend. There is potential for EV market share to reach 7% or higher by the end of this year.

(Note: the high sales in January–July 2022 were due to electric buses introduced in Bogota’s Public Transportation System that year, in a market nearly 50% larger.)

The market dynamics are shifting, with Chinese brands dominating in 2023, but 2024 beginning differently:

Only 5 out of the top 10 brands are Chinese, with BMW and Volvo entering the market. This diversification is surprising in a market typically focused on affordability. Notable appearances from Chevrolet and JMC suggest a shift in consumer preferences.

Looking at models reveals a similar pattern:

While there is a mix of Chinese and legacy auto brands, indicating the presence of Chinese-made models in both categories, only the Chevrolet Bolt stands out as a non-Chinese vehicle. The Chinese influence in the market is undeniable.

Despite a slight dip in market share from the peak in December 2023, market share is rebounding, hinting at continued growth. As new models enter the market, competition is set to intensify in various segments.

Final thoughts

The market is evolving rapidly with various factors at play, making it challenging to keep track. Government initiatives and new vehicle offerings are shaping the future of the EV market in Colombia. Charging infrastructure and standards remain critical issues that need addressing to support accelerated EV adoption.

As the market transitions towards mainstream adoption, pricing will be a key determinant of the pace of this transition. Affordable EVs and accessible charging solutions are crucial for widespread adoption. The shift from ICEVs to EVs hinges on achieving price parity and consumer demand for more economical EV options.

Despite the fast-paced changes, some areas like the electric motorcycle segment have seen limited progress, highlighting potential areas for improvement and growth in the future.