Chile’s automotive powertrain market is relatively small, with vehicle sales reaching 318,000 units in 2024, within a regional market valued at USD 3.88 billion. Although sales dropped by 26.5% in 2023, the adoption of hybrid and electric vehicles is growing, supported by government incentives for green vehicles and rising urban demand. Between 2025 and 2031, the market is projected to grow at a compound annual growth rate (CAGR) of 7.13%, fueled by policies promoting low-emission powertrains. Chinese original equipment manufacturers (OEMs) are increasing their presence by offering affordable hybrid models. However, challenges such as limited purchasing power and inadequate EV charging infrastructure remain, highlighting the need for further investments to support electrification and sustain growth in advanced powertrain technologies.
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