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Chile carmakers warn 800 models would exit if the 2027 fuel efficiency standard rises to 22.8 km per litre

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Chile carmakers warn 800 models would exit if the 2027 fuel efficiency standard rises to 22.8 km per litre

Chile's National Automotive Association (ANAC) has asked the government to postpone the increase in the vehicle energy efficiency standard due to take effect in January 2027. According to the industry group, if the target rises from 18.8 to 22.8 kilometres per litre of gasoline equivalent, more than 800 entry-level models would leave the market, sales could fall by up to 80,000 units in 2027 and business activity would lose about US$1.76 billion, Revista Electricidad reported on November 2, 2026.

The analysis was presented to the Finance Ministry. At the time of publication, ANAC said it had not received a formal reply from the Energy Ministry, which it is asking to settle the implementation conditions before year-end, with a realistic timetable and a schedule for monitoring and adjustment.

The impact ANAC projects if the standard rises in January 2027

+800

Models that would leave the market

Entry-level combustion versions

80,000 units

Sales drop in 2027

About a quarter of the market

US$1,760 M

Lower business activity

Scenario presented to the Finance Ministry

21.3%

Increase in the target

From 18.8 to 22.8 km/l equivalent

Source: ANAC via Revista Electricidad, November 2, 2026

View the data as a table
Models that would leave the market+800 · Entry-level combustion versions
Sales drop in 202780,000 units · About a quarter of the market
Lower business activityUS$1,760 M · Scenario presented to the Finance Ministry
Increase in the target21.3% · From 18.8 to 22.8 km/l equivalent

What Chile's vehicle energy efficiency standard is

The standard comes from Energy Efficiency Law 21,305, published in February 2021, which required the Energy Ministry to set fuel economy targets for new vehicles. A resolution published in the Official Gazette on February 12, 2022 set the standard for light vehicles, which began to apply in 2024.

The target does not apply to each car but to the sales-weighted average of each importing brand. A brand can sell models that fall short as long as its fleet sold, on average, reaches the target. That is why electric and plug-in hybrid vehicles, which have a very high equivalent fuel economy, help brands comply. The resolution makes importers or brand representatives responsible.

PeriodAverage target (km per litre of gasoline equivalent)Change from previous stage
2024-202618.8 km/l—
2027-202922.8 km/l+21.3%
From 203028.9 km/l+26.8%

Source: Energy Ministry resolution (Official Gazette, February 12, 2022) and the ICCT summary, which details the three stages. Percentages calculated by Energía Futura.

What ANAC warns about the efficiency standard

According to the association, every combustion vehicle sold today, and even conventional hybrids, would fall below the required performance from 2027. Models priced under CLP 15 million, the country's best sellers, would almost disappear, and adapting vehicles to the standard would cost US$3,500 to US$5,000 per unit, plus possible fines that ANAC puts at about US$75 million a year.

The group adds a technical point: since October 2025 cars have been homologated under the WLTC test cycle, which is tougher than the previous one and already lowers the fuel economy measured in the lab. It therefore asks for an assessment of the combined effect of the new cycle and the higher target.

ANAC scenario indicatorFigure
Entry-level models that would leave the marketMore than 800
Possible sales drop in 2027Up to 80,000 units
Projected sales for 2026310,000 to 320,000 units
Lower business activityUS$1.76 billion
Adaptation cost per vehicleUS$3,500 to US$5,000
Estimated finesAbout US$75 million a year
Lower recoverable VATUS$281 million
Lower green tax and circulation permit revenueUS$20 million
Direct jobs in the sectorMore than 115,000

Source: ANAC analysis presented to the Finance Ministry, cited by Revista Electricidad on November 2, 2026. These are industry projections, not official figures.

It “could become a missile to the pocket of the middle class,” said ANAC president Sebastián de Cárcer. Secretary general Diego Mendoza said that “future savings on gasoline do not by themselves solve that entry barrier.” The association also warns of a risk to fleet renewal: if new cars become more expensive, families could keep older vehicles that burn more fuel and pollute more for longer, citing a 2020 IMF analysis of the European Union.

Cars for sale parked outside a dealership in Santiago, Chile
Cars for sale at a dealership in Santiago. ANAC projects sales of 310,000 to 320,000 new vehicles in 2026. Photo: order_242 from Chile / Wikimedia Commons (CC BY-SA 2.0).

How cars are selling in Chile today

The debate comes as the market barely grows. Between January and September 2026, 237,181 new light and medium vehicles were sold, up 2.3% year on year, and in September alone 30,989 were sold, down 2.8%, according to ANAC's September market report.

Plug-in vehicles, which do the most to help brands meet the target, are growing much faster. Through September, 14,837 electric cars and plug-in hybrids were sold, up 144.6% from 2025, and they already account for 6.3% of the market, as we detailed in our story on electric and plug-in hybrid sales.

Light and medium vehicle sales (ANAC)UnitsYear-on-year change
January-September 2026, total237,181+2.3%
September 2026, total30,989-2.8%
Plug-ins (BEV, PHEV and P-REEV), January-September14,837+144.6%
Plug-in share of the year6.3%—

The Energy Ministry's intermediate goal is for 20% of new registrations to be electric or plug-in hybrid by 2030. ANAC does not dispute that goal but argues that the way to get there is electrification with incentives, not a standard that, by its count, no combustion model meets. Entry prices for EVs remain high: the cheapest options are listed in our guide to electric car prices in Chile.

A car's illuminated blue fuel gauge with the needle on reserve
The standard aims to cut fuel use in the new fleet: going from 18.8 to 22.8 km per litre means burning about 18% less gasoline per kilometre. Photo: Petar Milošević / Wikimedia Commons (CC BY-SA 4.0).

What ANAC proposes to the Energy Ministry

  • Keep the 18.8 km/l standard in 2027 and 2028, and keep the WLTC test cycle.
  • Use those two years to gather comparable local data at the Transport Ministry's 3CV laboratory in Maipú.
  • Set later stages based on evidence, with no automatic jump after 2029, and assess effects by segment and technology.
  • In the long run, amend the law to measure grams of CO₂ per kilometre, create a market for tradable green credits between brands and grant tax credits to companies that install chargers.
  • Review tariffs on electrified vehicles: hybrids, plug-ins and EVs paid about US$10.1 million in tariffs in 2025 because free trade agreements do not cover these technologies.

The association notes that the European Union has discussed easing its limits on combustion engines and that the United States has dismantled much of its efficiency programme, while Chile keeps its timetable unchanged. Conventional hybrids, which ANAC says would not reach the target either, can be compared in our list of the cheapest hybrid cars in Chile.

The decision rests with the Energy Ministry, which can keep the 2022 resolution's timetable or open an adjustment. As of publication there had been no official announcement of changes.

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Frequently asked questions about the vehicle efficiency standard

What efficiency standard applies today?

Between 2024 and 2026, brands must achieve an average of 18.8 km per litre of gasoline equivalent across the light vehicles they sell.

How much does it rise in 2027?

To 22.8 km/l between 2027 and 2029, an increase of 21.3%, and to 28.9 km/l from 2030.

Does the standard ban gasoline cars?

No. It is measured on each brand's average sales. ANAC argues that, in practice, without many EVs in the mix brands could not comply and would stop bringing in entry-level models.

What happens if a brand does not comply?

The law provides for fines on importers. ANAC estimates they could reach about US$75 million a year if the standard applies in January 2027.