In the streets of the Uruguayan capital, Montevideo, a quiet revolution is rolling on. The familiar growl of diesel engines is increasingly being replaced by the near-silent hum of electric buses, many bearing the logos of Chinese manufacturers such as BYD, Higer, and Yutong.

This transformation extends beyond public transport, as more Chinese new energy vehicles (NEVs) appear on city streets, marking a major shift in Uruguay's automotive sector and illustrating its expanding green technology partnership with China.

The statistics also speak volumes. According to Ignacio Paz, manager of the Uruguayan Automobile Trade Association (ACAU), one out of every three new passenger cars sold in Uruguay in 2025 was a Chinese NEV. "Chinese new energy vehicles are increasingly favored by Uruguayan consumers," Paz noted.

This rising consumer interest directly drives overall vehicle sales, which grew by approximately 8 percent in 2025 to reach 71,442 units, with brands like BYD, Dongfeng, JMC, Jianghuai, and MG experiencing rapid expansion.

"For me, if I want to buy a new energy vehicle, Chinese brands are definitely the priority," shared a customer at a Montevideo NEV dealership, echoing a common sentiment. "They have a futuristic design and interior, and the features, like the screens and seats, are better than fuel-powered cars in the same price range."

This NEV boom is firmly rooted in Uruguay's unique national advantages and proactive policies. The South American nation is a global green energy leader, with over 97 percent of its electricity generated from renewable sources, primarily wind and hydropower, according to government data. This provides an inherently clean and stable power grid for electric mobility, further supporting the shift to NEVs.

Building on this advantage, the Uruguayan government enacted a series of incentives in 2025 to accelerate adoption, including reductions or exemptions on import tariffs, registration taxes, and pollution taxes for NEVs.

Simultaneously, the state-owned power company UTE has been expanding the national charging infrastructure, aiming to install charging stations roughly every 50 kilometers along major highways.

The economic benefit for consumers is clear. Miguel, a ride-hailing driver in Montevideo, compared his expenses.

"When I drove a petrol car, I spent about 14,000 Uruguayan pesos (around $350) per month on fuel,”he said.“Now, with an electric car, my monthly electricity cost is only about 4,000 pesos (around $100)."

These collaborative efforts also extend deep into public transport. Beyond private cars, over 200 electric buses from Chinese brands are already in service across Uruguay, forming the backbone of greener urban transit systems in several cities.

While NEVs currently make up about 1.5 percent of vehicles on Uruguayan roads, their numbers are set to rise sharply. According to Paz, "2025 was a strong start. We believe more Chinese automotive brands will enter the Uruguayan market, offering consumers more and better choices."

This flourishing practical cooperation is laying a robust foundation for high-level strategic alignment. The partnership may be further elevated by the ongoing state visit of Uruguayan President Yamandu Orsi to China, his first since taking office, which begins on February 1, 2026.

President Yamandu Orsi highlighted the synergy between Uruguay's green energy matrix and China's technological prowess. "Chinese-brand new energy vehicles are welcomed by Uruguayan consumers, and other new energy products like solar panels are also selling well in our market," he said.

"Over 97 percent of Uruguay's electricity comes from renewables ... Solar photovoltaics are our next key focus. China leads the world in PV technology, and there is immense space for cooperation between our two countries in this field."

This vision for deeper collaboration was previously articulated by Uruguayan Foreign Minister Mario Rubetkin. In an interview with Xinhua in November 2025, he emphasized Uruguay's commitment to clean energy and expressed a clear desire to pursue it.

"We hope to engage in more profound cooperation with China during our green transition process, including in the application of new technologies and the expansion of green industrial chains," he said.

China and Uruguay, having established diplomatic relations in 1988 and upgraded them to a comprehensive strategic partnership in November 2023, are now weaving their shared commitment to sustainable development into the very fabric of their bilateral ties.

From the electric buses on Montevideo's streets to the solar panels poised to harness the nation's abundant sunshine, the China-Uruguay green partnership is not just reshaping mobility, it's powering a shared, sustainable future.

(Cover via VCG)