Internal combustion vehicle sales begin to decline in Uruguay as electric mobility gains momentum

Despite strong growth in the overall vehicle market, sales of internal combustion vehicles in Uruguay (including non-plug-in hybrids as well as gasoline and diesel vehicles) have declined substantially during the first five months of 2026. This makes Uruguay the first country in the region where the growth in electric vehicle sales has been strong enough not only to gain market share at the expense of internal combustion vehicles, but also to drive an outright decline in ICE vehicle sales without any overall contraction of the vehicle market.

The electric vehicle segment has experienced remarkable growth in 2026, approaching 200% year-over-year in May and surpassing 41% market share (43% inclunding plug-in hybrids). With electric vehicles now accounting for nearly half of the market, Uruguay has firmly established itself as the undisputed leader of the electric mobility transition in Latin America, ahead of Costa Rica, Colombia, and Paraguay.

The Uruguayan market has also become significantly more competitive. Whereas BYD was previously the only brand with substantial sales volumes, at least four brands now hold significant market positions. As a result, BYD's share of the electric vehicle market has fallen from 70% in 2024 to just 27% in 2026.

The market's rapid growth and increasing diversification, combined with falling prices and the arrival of new, more affordable models that have reached price parity with internal combustion vehicles, suggest that Uruguay will continue to lead the region in electric vehicle adoption and will likely surpass a 50% market share before the end of this year.

For more detailed information, we invite you to read the following report: Uruguay EV Sales Report: ICEV Sales Start Melting Down as BEVs Surpass 40% Share in May!