The automotive industry in Peru is transforming: the rise of electric and hybrid cars.

The automotive industry in Peru is undergoing an unprecedented transformation, marked by a collapse in imports of gasoline vehicles and a notable surge in the arrival of electric and hybrid cars. This radical change becomes more evident as the national economy continues to grapple with the aftermath of the crisis caused by the COVID-19 pandemic, which profoundly affected various sectors, particularly the automotive industry, whose recovery has been uneven and complex. During the first seven months of 2024, imports of gasoline and diesel cars and trucks have experienced alarming double-digit declines. According to data from the Institute for Research and Development of Foreign Trade of the Lima Chamber of Commerce (CCL), imports of gasoline cars, traditionally the most dominant in the sector, showed a decrease of 24.87% in value and 23.82% in volume. In numerical terms, this translates to a total of USD 624 million for 50,469 units, reflecting a clear declining pattern that began in 2023. In this context, gasoline trucks, which had shown a rebound of 26.23% in value and 18.81% in volume in 2023, have also suffered a setback. Between January and July of this year, imports of these units reached USD 103 million for 4,162 units, evidencing a decrease of 21.37% in value and 12.06% in volume compared to the same period last year. This shift in demand suggests a change in consumer preferences, which appear to be increasingly leaning toward more sustainable options. It is worth noting that the main suppliers of gasoline vehicles have been Japan, the United States, and China. However, the landscape is completely different in the segment of hybrid and electric vehicles, where notable growth has been observed. Imports of non-plug-in hybrid vehicles, for example, have increased by 30.21% in value and 46.29% in volume, indicating a growing interest in more eco-friendly and efficient alternatives. Electric vehicles have stood out even more, with an increase of 79.66% in value and an astonishing 100% in volume during the same period. This radical change in the dynamics of the automotive market reflects a transformation not only in supply but also in demand, driven by greater environmental awareness and the search for solutions that meet sustainability standards. China has emerged as the leader in the export of electric cars, while Japan has remained a predominant supplier of hybrid and electric trucks. This change in suppliers also reflects an evolution in the industry, where companies are adapting to the new market demands and the pressure to reduce greenhouse gas emissions. The transition to cleaner technologies is also being favored by potential government incentives aimed at promoting the adoption of sustainable vehicles. This support not only translates into economic benefits but also contributes to meeting global emissions reduction targets and combating climate change. The automotive industry, which plays a crucial role in production and employment in the country, faces significant challenges on its path to modernization. However, the growing acceptance of electric and hybrid vehicles suggests that it may be on the threshold of a new chapter of sustainable growth. Despite the declines in imports of traditional units, the future seems to lean toward broader adoption of clean and efficient technologies that align with the needs and desires of an increasingly environmentally conscious society. In summary, the transformation of the Peruvian automotive sector reflects global trends in mobility and sustainability. With more consumers opting for cleaner alternatives, the industry is likely to experience a revitalization that will not only aid the economy but also contribute to a greener and more responsible future. The key to this change will lie in the industry's ability to adapt and evolve in an environment that demands innovation and commitment to the environment.