Media post: Costa Rica’s EV Boom Collides with 2025 Tax Reality: Six Months After the Shift
Costa Rica just claimed the Americas’ highest all-electric market share for the third straight year—15.4% in 2024. Then the mid-2025 tax overhaul erased most of those incentives in one stroke. Prices jumped roughly 10%, growth has slowed and fleet strategies have changed permanently. Six months later, the data reveals who adapted fast and who is still playing catch-up.
The numbers landed like a thunderclap in May 2024. Costa Rica registered 11,373 battery-electric passenger cars that year—an 80% leap that delivered a 15.4% pure-EV share, the highest in the Americas according to CleanTechnica’s 2025 report. BYD Seagulls rolled off ships in Alajuela faster than mechanics could prep them, while rental counters in Liberia swapped entire rows of compacts for silent electrics.
For three brilliant years the math was irresistible: cumulative tax breaks over 50%, zero fuel cost and tourists willing to pay a premium for zero-emission transfers to Arenal or Nosara. That moment ended on June 30, 2025.
The Americas’ Fastest EV Run in 2024
Chinese brands captured more than 70% of the market, per BloombergNEF’s December 2024 Latin America analysis, turning compact models into the default choice for taxi co-ops and boutique hotels alike.
Total electrified registrations crossed 19,000 units, pushing the national EV fleet past 31,500 vehicles by the time the tax changes hit. Rental agencies in Guanacaste reported 40–60% of their inventory running on batteries—a transformation that happened almost overnight once the price gap closed.
Gravel roads to Monteverde and flooded crossings near Puerto Viejo quickly exposed the limits of standard policies. Battery cases scraped coral rock, undercarriages collected dents on unmaintained routes and off-network charging left tourists stranded.
Fleet managers learned fast that ordinary insurance falls short on Costa Rican terrain. Many now require comprehensive rental insurance coverage tailored for Costa Rican roads with explicit zero-deductible protection for gravel damage and battery claims.
Four Tax Layers Activated in July
Law 9518’s sunset clauses triggered simultaneously on 1 July:
– Selective consumption tax rose from 0% to 7.5%
– Customs valuation fee appeared at 0.25%
– VAT increased from 2% to 3%
– Annual marchamo discount dropped from 60% to 40%, as detailed in CleanTechnica’s 2025 tax-impact breakdown.
Together these changes added roughly 10% to landed cost—anywhere from US$2,000 on an entry Seagull to US$10,000+ on premium crossovers. The International Energy Agency has tracked identical phase-outs in Brazil and Mexico; growth typically slows 40–60% in the first full post-incentive year, according to the IEA’s Global EV Outlook 2025.
First-Half Frenzy, Second-Half Slowdown
The market voted with purchase orders before the deadline. May 2025 registrations alone reached 1,081 all-electric units, up 13.5% year-over-year as importers rushed containers through customs, CleanTechnica’s monthly update shows.
Since July, however, Statista reports revenue growth has cooled to an 8.42% CAGR through 2030, with annual volumes now expected to settle near 7,390 units by decade’s end instead of the 10,000–12,000 once projected.
BloombergNEF still sees Costa Rica holding a 10–20% regional lead through 2028, provided ICE delivers the promised 230 new chargers by 2026. Without that build-out, penetration could remain below 16% through 2026, mirroring Mexico’s post-incentive stall noted by Argus Media in October 2025.
Yet October’s record 25.6% share—up from September’s 21.7%—signals quick adaptation, per ASOMOVE data shared at the International Electric Mobility Congress. How long can this momentum hold amid rising costs?
Regional Leaderboard Snapshot
| Country | 2024 All-Electric Share | Total Electrified Units | Key Policy Edge |
|---|---|---|---|
| Costa Rica | 15.4% | ~19,000 | Highest pure-EV rate |
| Uruguay | 15.6% | ~8,500 | Stable incentives |
| Chile | 1.5% (9% incl. PHEV) | ~25,000 | New fuel-economy credits |
| Colombia | 4.6% | ~18,000 | Bus mandates |
| Brazil | 2.5% (6.5% incl. PHEV) | 125,000+ | Scale, not penetration |
(Source: CleanTechnica 2025, BloombergNEF Dec 2024 and IEA Global EV Outlook 2025)
Charging Infrastructure Remains the Wild Card
Public stations still cluster tightly along the San José–Caldera–Liberia corridor, with over 70% of the country’s 450+ chargers located within 50 km of those three cities, according to the latest ICE and Minae maps.
Outside those arteries, coverage remains thin: the entire Southern Caribbean coast from Cahuita to Manzanillo counts fewer than 25 public plugs, and the Nicoya Peninsula still relies heavily on hotel-installed Level 2 units. Surveys show 76% of owners outside metro areas describe access as “adequate at best,” according to data cited in the IEA’s 2025 outlook.
Rental agencies in Limón and the southern zone continue rotating vehicles like airplanes to keep batteries topped up, while remote lodges in Corcovado and the Osa Peninsula have begun installing 22 kW chargers just to guarantee guest arrivals.
Without the promised 230 new public stations by 2026, range anxiety will cap further fleet expansion in the most profitable tourist regions — despite ICE’s recent additions pushing fast chargers to 43 nationwide (Ticosland, Aug 2025).
Six Moves That Still Pay Off in 2025–2026
- Lock in extended battery and undercarriage warranties—many Chinese OEMs are quietly offering 24 months to protect share.
- Shift 30–40% of new orders to plug-in hybrids that retain stronger incentives.
- Partner with lodges on destination chargers; tourism boards cover up to 50% of installation.
- Secure specialized insurance while 2024–early 2025 loss ratios keep premiums reasonable.
- Test bidirectional-capable models to sell power back to hotels during peak evening demand.
- Focus inventory on high-turnover tourist corridors where charging density is already strong.
Position Yourself in the New Reality
Costa Rica delivered the Americas’ most dramatic three-year EV sprint: 80% growth in 2024 alone, 15.4% pure-electric share and a fleet that tripled in size. The July 2025 tax changes are now six months old, written into every new invoice and permanently reshaping the market.
Operators who acted before July 2025 secured full exemptions and now hold the strongest margins. Those who waited have absorbed the full 10% increase since July 1st and are losing ground fast. The window closed six months ago and the higher cost structure is now permanent.
