EV Gross sales Are Booming In Bolivia As The New President Scraps The Gas Subsidy

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If one is within the electrification of growing nations, Bolivia is probably probably the most fascinating Latin American nation to comply with in 2025. Amidst a two-year-long gas disaster, the Andean nation has been quietly constructing an enormous EV revolution as ICEV gross sales slowly collapse, as we reported earlier this 12 months.

Which makes it all of the extra irritating that I can not discover dependable information on how gross sales within the nation look.

Regardless, via the previous couple of weeks, I’ve been making an attempt to get as a lot info as potential to a minimum of current a basic image. Nonetheless, as a result of I do know our CleanTechnica readers wish to be additional knowledgeable, I’ll current some temporary context on how Bolivia received to this place earlier than exhibiting the accessible information we’ve about what’s happening.

Temporary historical past of Bolivia

Traditionally, Bolivia had been often called “Excessive Peru” — as a result of excessive Andean peaks and plateaus from the Viceroyalty of Peru. After Independence, the 2 nations briefly toyed with unity, however the experiment was over already by 1839.

Because the core of the previous indigenous lands underneath Incaic rule, Bolivia stays a rustic with a really giant proportion of indigenous inhabitants, someplace between 38% and 48% in keeping with a number of sources. Regardless of this, for many years the nation remained underneath the rule of a largely urbanized, white(ish) political elite. Although, this in no way translated to overwhelming conservative politics, as events such because the Nationalist Revolutionary Motion (MNR) remained related via the second half of the 20^th century.

After a deep political disaster that led to a number of presidents resigning in sequence, Evo Morales gained the nationwide elections in 2005 and have become Bolivia’s first indigenous president, and in addition the primary president ever to win with an absolute majority (54%), therefore not requiring a second electoral spherical. Evo went to reform the Structure and have become the primary president of the (now renamed) Plurinational State of Bolivia, implementing massive social insurance policies that may be funded because of the commodity increase in these years. Evo was removed from the one leftist chief in our area, and the general success of the Latin American left in most nations at the start of the millenium (together with Venezuela, Argentina, Chile, Bolivia, Brazil, Peru and Ecuador) went on to be known as the “Pink Tide.” Quite a lot of very outstanding leftist insurance policies, together with the nationalization of fossil gas assets (voted for in a Plebiscite in 2004) and the constructing of La Paz’s well-known gondola system, come from these years.

Gas subsidies amidst rising after which falling fossil gas manufacturing

1997 was the primary 12 months (in current historical past) when gas costs had been frozen as a method to manage inflation. In 2004, the value went up, nevertheless it was as soon as once more frozen to maintain it as a one-time factor. By then, there have been almost half 1,000,000 ICEVs in Bolivia’s streets.

In 2010, Evo tried to boost the value (which was as soon as once more far under market costs), however common opposition didn’t enable him to. At this level, Bolivia’s ICEV fleet had almost doubled to 960,000 automobiles, that means the associated fee for sustaining this subsidy had probably doubled as properly.

However again then, the federal government had the assets to pay for it because of important fuel reserves, regular (if low) oil manufacturing, and the commodities increase. By 2014, Bolivia reached the very best degree ever in fossil gas manufacturing. Oil stood at simply over 50,000 barrels a day (a really small quantity by worldwide requirements, however in all probability sufficient to maneuver 1,000,000 automobiles), whereas fuel was a a lot bigger 59 million cubic meters a day.

Nonetheless, as lots of our readers might bear in mind, that was the 12 months that commodity costs crashed. As revenues fell, investments floundered and reserves dwindled, resulting in stagnation after which secular decline, with manufacturing falling by round 50% via the subsequent decade: in 2024, manufacturing had fallen to 32 million cubic meters a day for fuel, and to 23 thousand barrels a day for oil.

And thru this decline, Bolivia’s ICEV fleet saved rising, and gas demand saved rising. With shrinking manufacturing, the nation was compelled to import gas so as to promote it at low cost charges at a time when fuel costs had been additionally taking place and thus exports had been falling. Consequently, the federal government — not wishing to spark social unrest — resorted to Bolivia’s worldwide reserves, which had solely just lately been constructed up.

The end result was catastrophic. Reserves had risen from a pittance in 2004 (1.1 billion USD) to a big 15 billion in 2014, however by 2023 they had been again all the way down to 1.7 billion. At this level, it was clear that one thing needed to change.

By 2024, Bolivia’s automobile fleet had risen to over 2.5 million automobiles, although with a small presence now of EVs. Gas had turn out to be scarce and features had turn out to be widespread at gasoline stations. The financial system stalled, with a 1.1% discount that 12 months, whereas the price of gasoline subsidies rose over 2 million {dollars}, over 5% of its complete finances, and solely at the price of decimating its reserves.

The tip of the gas subsidy

Lengthy story quick, important infighting on the Socialist Various Motion, Evo Morales’ Social gathering, plus the financial disaster, led to the victory of a center-right candidate in 2025’s elections: Rodrigo Paz Pereira.

President Paz declared Financial Emergency nearly instantly, with the primary choice being the elevating of gasoline costs, nearly doubling the earlier ones. At $1 per liter for low-grade, $1.58 for premium, and $1.40 for diesel, costs are actually extra consistent with the remainder of the area. Although, they continue to be cheaper if we use the parallel alternate fee as a substitute of the official one.

The choice sparked panic amongst automobile homeowners, with lengthy strains to purchase the final accessible gas at backed costs. Regardless of social unrest, it appears the situation from 2010, with large protests, has not been repeated. Paz additionally elevated the minimal wage, aiming to “shield the wallets of Bolivians,” because the rise in gas value will inevitably improve inflation.

It’s arduous to foretell whether or not this may have an effect on EV gross sales positively or negatively. On one hand, gas will now be costlier, however on the opposite, it’s probably that it’s going to now be accessible in any respect moments, offering certainty to automobile homeowners that they’ll be capable to refuel. Regardless, two years of systematic gas shortage in all probability have modified the mindset of lots of Bolivians.

What will we find out about EV adoption in Bolivia?

This brings us to the newest a part of our article: what number of EVs are being offered in Bolivia? I’ve made a big effort to get this information, however, sadly, it stays exterior our scope. However what we did discover was information on regionally accessible fashions, and import numbers, and that ought to present us a basic concept on what’s taking place there.

Relating to fashions, other than the native model Quantum, it appears BYD and JMEV are the principle EV manufacturers presently current in Bolivia. I’ve discovered it very arduous to match costs for EVs and ICEVs, as for no matter motive, EVs have a tendency to look in Bolivianos whereas ICEVs are supplied in US {dollars}: the JMEV EV3, for instance, could possibly be both 50% costlier than the Renault Kwid or comparable in value, relying on whether or not we use the official alternate fee or the parallel one. It’s been a standard speaking level that EVs are far costlier than ICEVs, however after evaluating a few fashions, I’m not too satisfied. There’s important presence of Chinese language manufacturers within the nation, however for now most of those manufacturers are centered on the ICEVs of yore. Although, Geely already has an upcoming part for 3 of its EVs (in all probability the Geome, the EX5, and the PHEV Starray EM-i).

Relating to imports, Bolivian media stories that the price of EVs coming into the nation has grown exponentially: in 2022, 1.8 million USD had been spent on bringing in such automobiles, with the quantity rising to three.74 million in 2023, 4.98 million in 2024, and an astonishing 16.3 million in Jan–Oct 2025. This represents 300% progress over 2024, and since EVs are prone to be cheaper the extra just lately they had been imported, it’s additionally probably the variety of imported models was increased.

We additionally discovered that complete imports for “transportation gear” for 2025 (Jan–Oct) was 203 million {dollars}, that means EVs accounted for 8% of that worth. But when we account for the truth that not all that transportation gear was automobiles, EV gross sales in all probability account for the next share than that.

And it will get higher. There’s the Bolivian homegrown EV firm: Quantum, specialised in promoting mini-cars and bikes — although, they now have a minimum of one city-car immediately competing with Chinese language imports, a number of last-mile supply vans, and one mid-range, 2-ton, fast-charging succesful truck. In all equity, I couldn’t decide if all these heavier automobiles are regionally constructed, are regionally assembled, or are imported entire. However a minimum of a number of the gross sales definitely go to regionally buily mini vehicles from Quantum, that means market share must be increased than imports point out.

How excessive is EV market share then? I’d go together with “a minimum of 10%.” For now, that must be adequate, and it might place Bolivia in third place within the area, behind Uruguay and Costa Rica, and barely forward of Colombia (which reached 9.98% in November).

Last ideas

Bolivia wasn’t alone in its choice to finish gas subsidies: Ecuador additionally did so with gasoline in 2024 and with diesel this previous September, and Venezuela has restricted the quantity of backed gasoline per citizen. In all circumstances, social unrest (when and the place it occurred) was not sufficient to discourage both authorities, marking a stark distinction with prior efforts.

Part of this, in fact, is a results of financial disaster and/or stagnation. That in all probability has hammered into the conscience of components of the inhabitants that gas customers must pay the complete value if the state is to stay viable. However part of me wonders if the presence of EVs as a rising power in Bolivia and Ecuador has additionally made a distinction. Years in the past, gasoline was a elementary want; these days, it’s a selection, one which will present reliability or consolation, however that’s in no way required for individuals or firms to get by. Within the case of Bolivia, I’d collect this impact can be additional compounded as a result of existence of an area EV champion.

I don’t know lots of people in both nation (really, I don’t know anybody in Bolivia), so it’s arduous for me to reply this query. And even when EVs have certainly influenced this end result, I’d anticipate it might be in a largely silent, maybe unconscious manner. However the reality stays that now one can lastly dwell, work, and thrive with out gasoline, and achieve this whereas supporting the native financial system, and, within the case of Bolivia, the nationwide business. And that has received to make a distinction.

What do you guys suppose?