Uruguay has seen a surge in electric vehicle adoption, with market share reaching 56% in August 2026. Fully electric vehicles account for 51% of total sales, while plug-in hybrids represent approximately 1/10th of the EV market. Sales in August grew by 171% year-on-year, approaching 4,000 units.
The broader vehicle market grew by 16% between January and August 2026 compared to the same period in 2025. Conversely, sales of combustion-engine vehicles declined by 16% throughout the year and by 20% compared to 2024. The government plans to introduce new taxes on imported EVs starting in 2027, ranging from 5% to 9% depending on the vehicle price.
BYD remains the market leader with a 25% share, followed by Geely and GAC. The Geely Geome/EX2 was the top-selling model in August, ahead of the BYD Seagull and GAC Aion UT. Tesla has not yet commenced vehicle deliveries in the country. Chevrolet is the only legacy automaker currently represented in the top 10 list of brands.
The current tax structure for EVs remains significantly lower than the levies on internal combustion engine vehicles, which can reach 35%. Cheaper electric models will continue to be exempt from the new taxes. Despite the growth, analysts expect the rate of expansion to moderate as the market share has already surpassed the 50% threshold.
