A Treasure Land 19,000 Kilometers Away: New Opportunities for Chinese NEVs Going Global

Introduction

When it comes to Argentina, many people’s first reaction is tango, beef, and football, but on the map of the new energy vehicle industry, this South American country also has an undeniable presence. It holds about 21% of the world’s lithium resources, providing a natural raw material advantage for power batteries. In Patagonia, the average wind speed reaches as high as 9 m/s, enough to support large-scale wind power. In Mendoza, Córdoba, and other places, there are more than 300 days of sufficient sunshine per year, making solar power generation almost continuous all year round, thus providing a solid foundation for clean transportation.

Such natural endowment, in any new energy industry plan, would be a land chosen by nature, but reality is somewhat contrasting. According to ACARA data, in 2024 Argentina’s total passenger car sales were about 450,000 to 500,000 units, among which sales of electric and hybrid vehicles were about 14,175 units, while pure electric vehicles numbered only more than 600, with a market penetration rate of less than 0.2%. Worse than the number of electric vehicles is the charging infrastructure. Between 2021 and 2024, only 364 public charging piles were recorded nationwide, meaning that on average 39 EVs share one public charging pile, and most of them are concentrated in big cities or tourist routes, such as the Buenos Aires–Mar del Plata route. The vast inland regions are still an “electric desert.”

Resources are in hand, but the market has not truly been opened. For Chinese car companies and industrial chain enterprises, this is not only an undeveloped market but also a window period in which resources, policies, and demand are about to resonate. This article will explore Argentina’s advantages, China’s opportunities and pathways, and the competitive landscape, to provide a guide for the landing of Chinese NEVs in Argentina.

Argentina’s Advantages

Argentina’s biggest trump card in the NEV industrial chain is still its unique natural resources. In addition to holding about 21% of global lithium reserves, Argentina also has abundant copper, nickel, cobalt, and other key metals. Copper is the core material for drive motors, cables, and charging networks; nickel and cobalt are critical elements for high-energy-density ternary lithium batteries, directly affecting battery range and stability. According to data from Argentina’s Ministry of Mining, the country’s proven copper reserves exceed 60 million tons, ranking only after Chile and Peru in South America. Nickel mines have not yet been developed on a large scale, but there is considerable exploration potential in Patagonia and the Andes. Such resource diversification allows Argentina not only to provide core raw materials in the battery sector but also to ensure long-term and stable upstream supply for drive systems, energy storage facilities, and even the entire NEV ecosystem.

On the energy side, Argentina’s renewable energy potential is equally outstanding. Patagonia is regarded as one of the world’s best wind energy areas, with an average wind speed reaching 9 m/s and stable wind conditions all year, providing conditions for large-scale grid-connected power generation. This advantage has led to the establishment of the Rawson wind farm in Chubut Province, the largest wind farm in South America, with an installed capacity exceeding 100 MW, producing enough electricity annually for about 100,000 households. In terms of photovoltaics, Argentina’s northern plateau has more than 300 days of sunshine per year, with strong solar radiation and a dry climate, making it very suitable for the construction of large-scale solar power plants. The Cauchari solar power station in Jujuy Province, with an installed capacity of 300 MW, is the largest high-altitude solar project in South America. It not only provides stable clean energy for the local grid but also serves as a landmark project of Argentina’s renewable energy development. With the continuous expansion of wind and solar projects, the proportion of “green electricity” in Argentina’s NEV manufacturing and charging network operations is expected to increase significantly. Low-cost, sustainable clean electricity will strongly support the construction of more public charging piles and fast-charging stations. Especially in the current situation of severely insufficient infrastructure, off-grid charging facilities directly powered by wind and solar also have huge potential and are expected to first land in remote areas and along highways.

At the beginning of 2025, one of Argentina’s biggest moves in promoting NEVs was officially implemented—the launch of a new import tariff reduction policy for NEVs, seen as an important signal to promote electrification. According to the policy, eligible electric and hybrid vehicles with an FOB factory price not exceeding USD 16,000 can enjoy zero import tariffs, replacing the previous standard rate of up to 35%. At the same time, the government set a five-year annual tax-free quota of up to 50,000 vehicles, of which 25,000 are allocated to automakers with production facilities in Argentina, and another 25,000 to importers without production bases. To accelerate implementation, applications can be submitted through an online platform with simplified procedures and shortened approval cycles.

Thanks to these advantages of resources, energy, and policies, Argentina has already attracted the attention and layout of many international car companies, while Chinese brands such as BYD and BAIC are entering the market through sales networks and cooperation projects. As market conditions gradually improve, more overseas car companies are evaluating the possibility of expanding production, assembly, or direct import of NEVs in Argentina, and competition in this emerging market is quietly heating up.

China’s Opportunities and Pathways

Although Argentina has superior resources and energy conditions, the current foundation of its NEV industry is still weak. At present, in high value-added links such as battery refining, assembly, and vehicle production, the local industry is almost blank, remaining mostly at the stage of raw material export, failing to form a complete industrial chain loop. The terminal market, although growing, is limited in scale, with a product structure dominated by hybrid vehicles and an extremely low proportion of pure electric. The charging network is still in the early stages of construction, with limited coverage, restricting long-distance travel and inter-provincial operations. This pattern of “resource abundance, industrial chain deficiency, infrastructure lag” means that the local market has not yet been fully developed, leaving huge entry space for Chinese enterprises with full industrial chain capabilities, cost control advantages, and overseas operation experience.

Whole Vehicle Import and Parts Assembly

Chinese NEVs’ competitiveness in the global market has evolved from a single low-price advantage to a comprehensive advantage covering product strength, technological capability, supply chain strength, and market operation experience. These advantages are especially attractive in a country like Argentina, which is resource-rich but in the early stage of market development.

In terms of products, Chinese car companies have already formed a complete matrix from entry-level microcars to mid- to high-end SUVs. For example, Chery eQ1, BYD Dolphin, Changan Lumin, and other small pure electric models are affordable and practical in range, very suitable for Argentina’s middle class and urban commuting scenarios; while models such as BYD Song PLUS DM-i and Geely Geometry E can meet the needs of consumers with higher demands for range and comfort. Thanks to a mature power battery industrial chain and large-scale production capacity, Chinese NEVs have significant cost control advantages in batteries, electric drives, and vehicle manufacturing compared with European, American, and Japanese competitors, often offering longer range and richer intelligent configurations at the same price point.

Chinese brands also have advantages in technological iteration. Technologies such as the “three-electric system,” whole-vehicle OTA upgrades, Internet of Vehicles, and smart cockpits are updated rapidly, enabling quick launches of adapted models for different markets. This flexibility is especially important in Argentina, where infrastructure is not yet perfect, as companies can better adapt to the local environment by adjusting charging port standards, battery capacities, drive forms, and other features.

In terms of brand influence, Chinese NEVs have already made significant image improvements in the Latin American market. The sales and reputation established by brands like BYD and Chery in countries such as Chile and Brazil provide a natural foundation of market recognition for entering Argentina. This early accumulation means that Chinese vehicles in Argentina can not only win on price and performance but also gain an advantage in consumer trust.

In addition to directly exporting vehicles, Chinese automakers can also improve competitiveness and expand market share through setting up factories in Argentina or adopting CKD (completely knocked down) or SKD (semi-knocked down) assembly models. Argentina has a certain automobile industrial base. Multinational companies such as Toyota, Volkswagen, and Renault have been operating here for many years, accumulating experienced industrial workers and parts supply networks, which provide usable conditions for the localized production of Chinese automakers.

Infrastructure

Argentina’s current charging network is extremely limited. Most inland provinces and long-distance transport routes lack any public charging facilities. This is the biggest bottleneck restricting the popularization of pure electric vehicles, but it is also an excellent opportunity for Chinese companies to enter.

First, in equipment manufacturing, Chinese suppliers occupy an absolute leading position in global charging pile shipments, with stable supply chains and large-scale production capacity. The unit cost of charging piles is usually 20%–40% lower than that of similar products from Europe and the U.S. This means that deploying charging piles in Argentina can achieve higher coverage density with lower investment costs.

Second, in technology, Chinese brands have entered the international leading level in DC fast charging, ultra-fast charging, liquid-cooled charging, and other areas, reducing charging times to 15–30 minutes, meeting the needs of long-distance transport, taxis, and ride-hailing vehicles with high-frequency operations. At the same time, intelligent charging management platforms can realize real-time monitoring, remote maintenance, user payment, and data analysis, greatly improving operational efficiency.

Third, Chinese enterprises have rich experience in integrated solutions of photovoltaics + energy storage + charging, enabling the construction of off-grid charging stations in areas of Argentina rich in wind and solar resources but with weak power grids, realizing self-generation, self-use, and low-carbon energy supply.

When entering the Argentine market, Chinese charging pile enterprises have multiple choices. One way is to cooperate with local energy companies, utilities, or even large commercial real estate firms, leveraging their land, power access, and local relationship networks. This not only avoids detours in approvals and site selection but also quickly deploys the first batch of charging piles in shopping centers, parking lots, gas stations, and other high-traffic areas, building brand awareness. Of course, another approach is a lighter model: first export equipment and supporting software, then provide support such as remote monitoring, payment systems, and operation and maintenance services. This model reduces investment pressure, speeds up implementation, and enables early deployment of energy replenishment networks in major cities and key traffic routes, making future vehicle sales more secure.

Argentina’s electrification is just beginning and has not yet formed a fixed industry pattern. If Chinese companies enter at this time, they can not only seize the market but also use their charging networks to drive the sales of Chinese NEVs locally.

Industrial Chain Extension

If whole vehicles and charging networks are seen as the external image of NEVs spreading in Argentina, then the battery industrial chain is the core that supports everything. Argentina itself is an important global source of lithium resources, and it also has potential in copper, nickel, cobalt, and other key battery metals. However, these resources are currently mostly exported as raw ore or primary products, lacking a complete system extending downstream to cells, modules, and even full pack manufacturing. This leaves huge room for Chinese enterprises to enter.

In this field, the global competitiveness of Chinese power battery enterprises is well recognized. For example, CATL has ranked first in global installed capacity for many years, covering multiple technical routes such as lithium iron phosphate and ternary lithium, and maintaining a leading position in energy density and fast charging technology. CALB performs outstandingly in high energy density and high-rate batteries. BYD also develops its own batteries and has established differentiated advantages in safety and lifespan with its “blade battery.”

These enterprises have full-chain capabilities from material research and development, raw material procurement, and cell manufacturing to system integration. Once entering Argentina, they can not only locally consume lithium resources but also directly supply high value-added products to Chinese-branded vehicles and energy storage projects sold locally.

B-Side Market

In addition to the passenger car market, Argentina also has electrification opportunities in public transportation and B-side fleets. Cities like Buenos Aires have huge numbers of buses, taxis, and ride-hailing cars, with fixed routes and concentrated mileage, making them especially suitable for electrification. At the same time, the government and local authorities have urgent needs to reduce urban pollution and fuel dependence. Once subsidies or procurement plans are introduced, they will quickly drive bulk orders.

Chinese brands already have rich experience in this field. For example, BYD’s pure electric buses have already been widely operated in Latin American countries such as Chile and Brazil, while bus manufacturers like Yutong and King Long are highly competitive in overseas public transport tenders. For the Argentine market, such vehicles can cooperate with local bus companies, airport shuttle services, and port logistics parks, forming stable long-term supply and maintenance contracts. This not only increases market share but also drives brand influence through high exposure.

Competitive Landscape

In Argentina, truly independent NEV companies are still mainly small-scale local innovators. Among them, Sero Electric is one of the most representative local brands, focusing on the production of micro EVs. Its products feature low speed and short range, suitable for light short-distance urban use, with about 85% of its components manufactured locally in Argentina. In addition, local manufacturers such as Coradir (Tito) have also made attempts in the micro EV market. In 2023, such locally manufactured pure EVs accounted for only 4% of registrations, reflecting that although local brands have innovation ability, they have not yet formed scale or market influence.

Foreign NEV companies in Argentina have not yet set up real NEV production plants. Although multinational companies such as Citroën, Renault, Toyota, and Ford have traditional fuel vehicle assembly lines locally, they have not localized the production of NEV models. The NEV businesses of foreign brands mainly rely on imports or dealership channels to enter the Argentine market.

In contrast, Chinese electric brands have already actively entered the Argentine market and begun comprehensive layouts. Among the more than 33,000 NEVs in the first batch of tariff-free import quotas in 2025, Chinese brands almost dominated. From June to September, it is estimated that about 19,500 Chinese NEVs will arrive in Argentina, accounting for 59% of the first batch of imported vehicles.

According to a report from ReporteAsia, in this batch, BAIC took the lead with 6,080 quotas, accounting for 18.4% of the first batch, including 5,720 BJ30 hybrid SUVs and another 360 EU5 Plus pure electric sedans. SAIC’s MG followed closely, importing 3,024 vehicles, accounting for 9.2% of the first batch, covering MG3 hybrids, MG4 pure electric, and hybrid and pure electric versions of the ZS series. Great Wall Motors’ Haval gained 2,950 quotas with Jolion Pro and H6 hybrid SUVs, accounting for 9%. Geely’s Lynk & Co will also enter Argentina with 2,487 units of Lynk & Co 02 and 06 models, accounting for 7.5%.

Also noteworthy is BYD’s official entry, planning to import 1,300 models, including Dolphin, Qin, Song Pro, and Yuan Plus, accounting for 4% of the first batch. BYD not only provides a diverse product line but also has full-chain technological accumulation in batteries and public transportation electrification, intending to establish long-term advantages in the Argentine market.

Of course, foreign car companies also benefit from the new tariff-free import scheme. Enoreve leads foreign companies with 5,006 quotas, accounting for 15.2% of the first batch, importing sample models including Volt EV and ME5 hybrid. Next is Ford, which will import 2,500 Territory hybrid SUVs, while Fiat brings 2,000 Fiat 600 hybrids, accounting for 7.6% and 6% respectively.

Many analysis institutions, such as Rest of World and Rwazi, point out that Chinese brands, with advantages in price, configuration, and supply chain integration, are squeezing the living space of local small and medium NEV companies in Argentina, making it difficult for the latter to compete in scale, technology, and cost performance.

Conclusion

From the country of tango to the country of lithium, Argentina’s NEV story has just begun. It has globally scarce resource endowments, policy dividends that are being released, and a market that is almost blank waiting to be filled. For Chinese car companies and industrial chain enterprises, this is not only a competition about products and prices but also a competition about speed, strategy, and localization.

With the implementation of tariff-free import quotas, the rollout of infrastructure, and the establishment of local partner networks, Chinese NEVs are expected to achieve a transformation in Argentina from trial to taking root. Perhaps in a few years, when people see rows of Chinese-branded EVs on the streets of Buenos Aires, they will realize that this quietly started green mobility revolution has already become an unignorable splash of color in South America’s transportation landscape.