Market Trends of Chile Commercial Vehicle Industry
Light Commercial Vehicles Are Leading the Market
Light Commercial Vehicles have been at the forefront of Chile's commercial vehicle market in recent years, driven by several factors including urbanization, e-commerce growth, and government policies.
Further, the COVID-19 pandemic accelerated the adoption of e-commerce and last-mile delivery services, which in turn boosted demand for LCVs. This trend continued into 2023, with many businesses investing in smaller, more agile vehicles to meet the growing need for urban logistics and delivery services. The versatility of LCVs, which can navigate narrow city streets more easily than larger trucks, made them particularly attractive for businesses operating in Chile's urban centers.
Additionally, the mining sector, a crucial part of Chile's economy, has also contributed to the growth of the LCV market. Many mining companies have been investing in smaller, more fuel-efficient vehicles for personnel transport and light cargo duties within mining sites.
Hence, increasing range of options in the LCV segment have made these vehicles particularly attractive to a wide range of businesses in Chile.
Electric Vehicle Type is Expected to Grow with Significant Rate During the Forecast Period
Chile has been making significant strides in promoting electric vehicles, including in the commercial sector, as part of its efforts to reduce carbon emissions and promote sustainable transportation.
- Chile's National Electromobility Strategy mandates that all HDV sales transition to ZEVs by 2045, with a vision for EVs to comprise 40% of the passenger LDV stock by 2050, illustrating Chile's long-term vision for a sustainable transportation infrastructure.
Further, electric buses have been at the forefront of this transition. Santiago, the capital city, has been a leader in this regard. By early 2023, Santiago had one of the largest electric bus fleets outside of China, with hundreds of electric buses in operation. This initiative has been part of a broader plan to improve public transportation and reduce air pollution in the city. Additionally, the Chilean government has implemented various policies to encourage the adoption of electric vehicles, including commercial ones.
Owing to these positive efforts, the market for electric CVs is expected to be the fastest growing during the forecast period.
