Four reasons why you should invest in electric mobility in Colombia
Colombia is one of the most biodiverse countries in the world. Its territory is made up of seas, rivers, jungles, paramos, snow-capped mountains, and many other natural wonders that make it a place full of beauty. All this has made Colombians fall in love with nature and has sparked a great interest in preserving it.
This is why initiatives such as electric mobility and the use of renewable energies have become so important in the country during the last decades. Colombia wants a better sustainable transportation system and is looking for investments and businesspeople interested in electric mobility projects. Here are four reasons why you, as an investor, should start investing in electric mobility in Colombia.
1. The whole country’s support
Colombia is committed to the Sustainable Development Goals set by the United Nations, where objectives are set to achieve a more sustainable and environmentally friendly world. For this reason, several incentives have been developed for the improvement of sustainable investments in the country. These incentives include tax benefits for companies that work with renewable energies or have a sustainability component in their business model.
In addition, during the last year, progress has been made in the development of many regulations for electric mobility. For example, these laws set forth how the electric charging service for vehicles of this type should be provided in Colombia. Thanks to this, users will be able to charge their vehicles at the different charging stations nationwide, with any restrictions.
Besides, the country has not only supported this industry with laws, but the government has also been present at the inauguration of these charging stations, which demonstrates the support that electric mobility has in Colombia. Both the public and private sectors, as well as the consumers, have shown their support for this kind of transport.
2. A friendly market
The Colombian domestic market has shown its interest in electric mobility. According to Fenalco and ANDI, in the country, during 2023, electric vehicles grew 12.2% and hybrid vehicles grew 13.3%. In addition, between January and December 2023, 3,677 new electric mobility vehicles and 27,813 new hybrid vehicles were sold.
This shows that there is a wide demand for this type of goods nationwide, which has allowed the electric vehicle market not only to remain in the country but also to grow compared to previous years.
3. There is still a long way to go
The country has already made great strides in the development of electric mobility. This is thanks to investments in transportation systems that are being transformed to reduce their impact on the environment, making public transportation in Colombia increasingly sustainable.
However, there is still a long way to go. Not all the cities in Colombia have taken this path yet, and those that have already started the process aren’t at the level they want to be, so there is a space for the growth of electric mobility.
In addition, in the coming years, measures will begin to be implemented that will further restrict the use of non-hybrid or non-electric vehicles. That would boost the demand for this kind of transportation, as other vehicles will be increasingly restricted.
4. Other companies are already taking advantage of this opportunity
Large international companies that have already invested in the country of beauty have seen the potential of this sector in Colombia and are confident that this is a destination where they will achieve a valuable return on their business.
This is the case of Hero Moto, a company that installed in Colombia its first international factory outside India. This is because they see a domestic market open to their goods and have seen Colombia as an export platform within the region, thanks to its geographical location and its trade relations with Latin American countries.
This company has begun to develop increasingly environmentally friendly vehicles and is working on the production of motorcycles that use electricity for their operation. In addition, they have recognized the importance of business models that facilitate the charging of batteries for vehicles, which gives an important opportunity to charging stations for this kind of vehicles.
Another example is the case of BYD, one of the most relevant electric and hybrid vehicle companies in the global market. The company has already supported the development of electric mobility in public transportation in Colombia, offering the first electric taxis in the country and supporting the transition of companies such as Transmilenio with more sustainable buses.
Although the company has focused on cities like Bogotá and Medellín, they have plans to start supporting these processes in other cities in the country, with innovative technology. In Why Colombia, ProColombia's podcast that shows how Colombia's beauty drives businesses, we spoke with Lara Zhang, CEO at BYD Colombia. Find the full episode here.
Don't miss the opportunity to invest in a sector with a promising future that is continuously growing. Investing in Colombia, the country of beauty, means taking advantage of these opportunities by promoting sustainable business in a destination that awaits you with open arms. Find out more about foreign direct investments in Colombia here.
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