Given that more than 90 percent of its population lives in cities, Argentines are quite familiar with traffic congestion and the smog and noise that come with it. A growing population, urbanisation and car sales lead to more gridlock and pollution. It is welcome news then that Argentina is taking bolder steps toward sustainable transportation and mobility.
From the heart of Buenos Aires to remote corners of Patagonia, the electrification of transportation is gaining momentum, driven by a convergence of innovation, government support and a broad push for modernisation across political and economic spectrums.
The Buenos Aires City government recently announced that starting in May of this year, it will be introducing the first fully electric bus line in Buenos Aires, which will connect Plaza San Martín with Parque Lezama, with a possible extension to La Boca. This electric fleet will be fully operated by women. Buses will transport around 500,000 passengers annually, improving connectivity in the Historic Centre and Microcentro.
The Retiro Transit Hub in Buenos Aires plays a central role in transportation and urban development projects that enhance city connectivity and infrastructure. With a high volume of commuters, electrifying Retiro could be pivotal for Argentina's sustainable future.
Federico Poore, a journalist and expert in urban planning, says that battery electric buses could notably reduce noise pollution. In the case of Retiro, “one of the major issues is the noise pollution caused by conventional buses, which electric buses could significantly mitigate,” he added.
Although the transition to electric buses in Retiro and beyond seems distant, it remains a critical step for sustainable urban mobility. Poore noted that this is a benefit often overlooked. Transitioning to electric buses at places like Retiro, said the expert, marks a significant step toward sustainable urban mobility.
Electric buses in Buenos Aires are consistent with Argentina's Plan Nacional de Transporte Sostenible. This initiative promotes the adoption of EVs and cleaner energy sources, with some realistic goals like having EVs comprise one percent of new vehicle purchases.
Transitioning from traditional gasoline-powered vehicles to electric ones has the potential to reshape Argentina’s transportation landscape, offering new economic opportunities and potential environmental benefits.
Pilot projects
The Development Bank of Latin America and the Caribbean (CAF) launched a pilot project for electric buses in Buenos Aires in 2019. The scheme demonstrated significant potential for carbon emission reductions, highlighting the importance of expanding EV charging infrastructure for long-term sustainable mobility.
A pilot test with the Line 59 bus in Buenos Aires evaluated two electric vehicles from 2019 to 2020, assessing technical, operational, economic, and environmental viability. A CAF report showed that electric buses can be instrumental in the reduction of carbon emissions and other pollutants, if supported by a clean electricity matrix. It concluded that the electric buses operated satisfactorily, with positive feedback from both drivers and passengers, while noting economic feasibility challenges without key subsidies or better financing conditions.
The electric bus programme due to come online this year, even on its relatively small scale, will bring tangible benefits to Buenos Aires from cleaner air to quieter neighborhoods. But will this programme be a one-off or an early sign of a larger overall shift?
Recent governments have taken steps to support a broader transition to electric mobility. While policies promoting cleaner energy often align with sustainability goals, in Argentina these measures are designed to provide economic incentives that appeal to a broad range of interests, from business leaders to consumers.
For example, Argentina’s Electromobility Law (Law No. 27,520), aimed at incentivising the purchase of EVs and supporting the necessary infrastructure development. Through providing tax benefits and subsidies, it helps make EVs more accessible and practical, thereby reducing carbon emissions and advancing sustainable transportation.
As of February 2025, Argentina has eliminated tariffs on certain electric and hybrid vehicles with a Free On Board value of up to US$16,000. Until now, many of those vehicles were subject to a 35-percent tariff, limiting access to the local market.
Argentina frames the transition to EVs as a shared national goal, one that can benefit individuals, businesses, and the country. Whether reducing the cost of fuel imports, or creating jobs in new industries, the focus is on tangible economic advantages.
Assessing barriers
“Argentina is lagging behind in the adoption of electric vehicles,” according to Fermín Koop, the Latin America managing editor at Dialogue Earth.
Koop, an experienced environmental reporter, compares EV adoption in Argentina to some Latin American neighbours, stating that Argentina faces significant hurdles in its transition to electric mobility, with infrastructure gaps, regulatory hurdles, and financial constraints as key obstacles.
Challenges to electrification deployment in Argentina vary and include an ageing grid and energy transmission issues; economic constraints like inflation and EV affordability; policy and regulatory hurdles needing long-term strategies; local automotive industry's adaptation and supply chain limitations; and public adoption concerns such as consumer trust, EV demand, and incentives.
In April 2021, a report by the Structural Change Council at Argentina’s former Productive Development Ministry observed that while Argentina has vast lithium reserves, local battery production is still underdeveloped, forcing manufacturers to rely on imports.
The report, titled “The transition towards electromobility: A general overview and prospects for Argentina,” notes that high purchase costs and limited financing options are major deterrents for consumers, compounded by Argentina’s high interest rates. Meanwhile, the well-established natural gas vehicle sector competes with electrification efforts, benefitting from a robust infrastructure and existing government subsidies.
Public transport electrification faces similar challenges. Despite growing global investment in electric buses, subsidies in Argentina still favour diesel-powered fleets, limiting incentives for operators to transition.
The Productive Development Ministry report says that without a more comprehensive strategy to support electric mobility, Argentina risks falling further behind as the world moves toward sustainable transportation.
Inevitable shift
Argentina stands at a crucial juncture in its journey towards electrification. The potential is undeniable. The shift is inevitable. And although the challenges are considerable, they are mostly not exclusive to Argentina – this trend is happening all over the world.
Near-term actions will be crucial in determining how the transition unfolds. By developing policy frameworks, making dedicated investments and fostering robust public-private partnerships, Argentina can navigate these challenges similar to how other countries and cities around the world have. By improving infrastructure, streamlining regulatory processes and fostering financial incentives, Argentina can accelerate its transition toward electric mobility. Strengthening access to electric batteries either produced locally or internationally, expanding the charging network and rebalancing subsidies to favour electric public transport are all achievable steps.
Insights gained from experiences across the globe can help the country overcome the challenges. By leveraging lessons from world leaders and its Latin American neighbours, Argentina can carve out a unique path in the regional and global electrification landscape. But a concerted effort is needed, involving stronger policy frameworks, dedicated investments and robust public-private partnerships.
The road ahead is uncertain, but with strategic actions and collaborative efforts, Argentina has the potential to spark a broader shift in sustainable mobility and electrification.
Comments