Investing in electric cars in Chile has many advantages
Investing in electric cars in Chile has many advantages

The Latin American countries are among the most prominent countries in the production of green energy. Last year, for a full 300 days, Costa Rica relied on 100% renewable energy sources, and in 2016 50% of energy in Latin America was produced from renewable energy sources.

With the increasing experience of the Latin American governments in the renewable energy sector, there is an increasing trend towards establishing electrical transmission systems, and Chile is at the forefront of Latin American countries that adopt this trend, as Chilean Energy Minister Susanna Jimenez pledged that electric cars would constitute 40% Of private cars and 100% of public transport vehicles by 2050.

Chile leads the electric car market in Latin America

- Chile's ambitious plan began in December 2018 when the first 100 electric buses set out from a cargo ship to the streets of Santiago.

This was followed by another 180 electric buses that arrived in Santiago this summer.

- In 2017, Chile had the highest vehicle density in Latin America.

Electric vehicles accounted for only 0.01% of their vehicles, which resulted in Chile having the worst air quality in Latin America.

A recent study stated that there are 1300 deaths linked to respiratory diseases that can be avoided in Santiago during the next ten years if public transport cars become electric.

Through its ambitious plan, Chile not only targets public transport buses, but also encourages the use of bicycles, taxis and electric private cars.

Domestic electric car production

Chile not only leads the market in Latin America in terms of using electric cars, but also leads the market in its production.

Chile has huge reserves of lithium of 8 million metric tons, making it the most lithium-rich country in the world, a mineral mainly used in the production of electric cars.

Most of the lithium mines owned by Chile are in the area around northern Chile.

In 2018, Chile exported $ 948 million in lithium, a significant increase in exports that led to the growth of the electric car industry.

- Because Chile has the most lithium in the world, it is important for electric car manufacturers to make good business deals with it.

Chile's business environment

Chile is the most stable Latin American economy, and one of the countries with massive foreign investment annually.

Chile ranked third in the world in terms of the proportion of foreign investment in gross domestic product, according to the UNCTAD Global Investment Report 2019.

The flow of foreign direct investment in Chile is largely due to the developed business environment and transparency in the country.

This is in addition to government-friendly business policies and an educated workforce, which are factors that encourage investment.

Financial advantages for foreign companies

- Chile offers many financial incentives to foreign companies, including the provision of tax credits to companies looking to do research and development activities within Chile.

In addition, Chile has a technology innovation program that supports research and development related to innovation in processes or products.

- Chile also introduced a new form of legal entity called a "stock-based company", which contributed to reducing the bureaucracy in the process of establishing companies.

- It allowed the possibility of a single shareholder of the company and the possibility of foreign ownership 100%, and these incentives contribute to attracting investors to Chile.

Steps to start a company in Chile

Chile is among the 10 best countries in the world in terms of ease of incorporation of companies, as the process of establishing a company with a short period of six to eight weeks, which represents an additional incentive for investors, and the process of establishing a company in Chile includes the following steps:

Possessing the tax ID of the shareholder in the company.

- Prepare and sign company regulations.

- registration of the company.

- Obtaining the company ID number.

- Opening a bank account for the company.

Deposit the minimum amount of capital required in the company's account.

Electric cars in other countries in Latin America

Other Latin American countries are seeking to follow the approach of Chile with regard to the shift towards electric cars.

This includes Mexico City, which has seen an increase in electric bicycles and plans to provide 500 electric buses with it.

- The city of Sao Paulo in Brazil has provided more electric cars.

Colombia is studying how electric cars can help reshape its transportation system and reduce pollution in major cities such as Medellin and Bogota.