Sales in the electric vehicle sector have surged by 167% in 2025, driven by tax incentives and expanding infrastructure.

Growth in the electric car market

Electric vehicles (EVs) are rapidly gaining traction in Ecuador, marking a significant shift in the country’s automotive landscape. With no Value Added Tax (VAT), no license plate tax, and a $10 registration fee, the electric car market is expanding at an unprecedented pace.

As of July 2025, sales of electric vehicles have grown by 167% compared to the same period in 2024, with 1,917 units sold between January and July. This growth has solidified electric cars as the fastest-growing segment of Ecuador’s automotive market, even amid the power outages and economic slowdown that affected other industries.

Although electric cars still represent just 2.9% of the overall vehicle market, their popularity is undeniable, with sales peaking in July 2025, reaching 372 units—the highest number in the history of Ecuador’s electric vehicle market. This surge is attributed to several factors, most notably government incentives such as the exemption from VAT, Special Consumption Tax (ICE), and import tariffs. Furthermore, cities like Quito have removed restrictions on peak hours and license plate bans for electric vehicles, making it even more convenient for drivers.

The role of government incentives

Government support has played a crucial role in boosting the electric vehicle market. In June 2025, President Daniel Noboa announced that the registration fee for electric vehicles would be set at just $10, though the implementation date has not yet been finalized. The Ecuadorian Internal Revenue Service (SRI) has requested that automotive companies report their electric models by August 8, 2025, to apply these benefits soon. As the market grows, these tax breaks and incentives are likely to attract more drivers to consider EVs as a viable and sustainable option.

Leading brands and top-selling models

The global leader in electric vehicle sales, Chinese company BYD (Build Your Dreams), has emerged as the dominant player in Ecuador’s electric car market. In 2024, BYD sold a staggering 4.2 million electric vehicles worldwide, surpassing Tesla as the top electric vehicle manufacturer. In Ecuador, BYD accounted for 56% of all electric vehicle sales between January and July 2025, with 1,081 units sold.

Behind BYD, Korean automaker Kia and American brand Chevrolet round out the top three, selling 202 and 118 electric vehicles, respectively. With more than 15 brands competing in the electric vehicle sector in Ecuador, the market is becoming increasingly diverse, with a variety of options available for consumers.

The growing preference for electric SUVs

Electric SUVs have proven to be the most popular choice for Ecuadorian consumers, with 70% of all electric vehicle sales in the first half of 2025 comprising this category. The remaining 30% of sales were dominated by sedans. Among the top sellers in the electric SUV segment are two models from BYD: the Yuan Pro, priced at $25,990, and the Seagull hatchback, starting at $18,990. The KIA EV 5, another popular SUV, boasts an impressive range of 550 kilometers, making it a top choice for drivers who frequently travel between cities like Quito and Guayaquil, which are approximately 432 kilometers apart.

The combination of tax incentives, increased availability of charging stations, and a growing selection of electric vehicles has made EVs a more accessible and attractive option for Ecuadorian consumers.