Of the approximately 700 electric vehicles that have entered Guatemala this year, only three are buses intended for public transportation, which amounts to about 0.43%, according to data shared by Nancy Chacón, vice president of the Guatemalan Electric Mobility Association (AMEGUA).

Chacón noted that there are approximately 2,700 100% electric vehicles on the road in the country. However, despite this growth, the number of buses added to the public transportation fleet remains low.

The vice president of AMEGUA explained that this gap could become an opportunity to attract investment. In her view, sustained demand for between 300 and 500 electric buses per year could make it attractive for a company to set up operations in Guatemala. “And I can tell you that the country’s need far exceeds this volume,” she said.

This possibility arises amid a growing trade relationship with Taiwan. According to data from the Bank of Guatemala, in 2025 Guatemala imported US$215.2 million worth of products from that market, compared to US$190.2 million in 2024—representing an increase of about 13.2%. Among the imports are machinery and mechanical devices for electro-technical uses, with imports from Taiwan totaling approximately US$21.6 million in 2025.

There are at least four factors related to the potential for developing an electric bus industry that could shape the future of this sector in the country.

Assembly and Bodywork

One of the first areas Guatemala could capitalize on within a potential electric bus production chain is the assembly of vehicles and the manufacture of bodywork.

The vice president of AMEGUA believes this would be one of the most realistic places to start. As she explained, Guatemala could incorporate technology developed in other countries and carry out part of the vehicle assembly process locally. 

“What we in the industry in Guatemala can contribute is all the assembly and bodywork that can be done here, while bringing in technology from other countries—such as battery packs and chargers.”

This approach would not require manufacturing all the components of an electric bus from scratch. The scenario outlined by Chacón begins with an initial phase in which Guatemala could handle the frame, bodywork, and assembly, while the more complex technological systems would continue to be sourced from abroad.

Juan Esteban Sánchez, executive director of Invest Guatemala, also identifies assembly as one of the first steps that could be taken in the country if demand increases. From there, he envisions a gradual evolution toward component production and, eventually, regional exports. “Assembly could be the first step, followed by the production of some of the parts needed for this type of equipment—and why not, at some point, become an exporter of this type of equipment to the region?”

However, current market conditions show that there is still a gap between that opportunity and established local production.

Tania García, sales manager at Electron Power, explained that the vehicles and minibuses the company sells arrive fully manufactured from China. For now, she added, the company has no plans to move that process to Guatemala, due to the complexity of the industry and the level of development the local market still requires.

“At the moment, it hasn’t been a possibility [...] it’s a fairly complex industry, and right now I think Guatemala is still in the process of growing to support an industry of this type.”

This contrast shows that the opportunity to assemble electric buses exists, but it still depends on reaching sufficient scale. To justify investments in machinery, production lines, training, and technology transfer, companies would need more stable and predictable demand.

This is where AMEGUA’s estimate of between 300 and 500 electric buses per year becomes relevant again. For Chacón, a volume of that magnitude could make setting up an assembly operation in Guatemala more attractive, rather than simply importing finished vehicles.

Supplier Ecosystem

Sánchez noted that one of the main questions investors ask when evaluating whether to set up operations in the country is how well-developed the network of companies is that could complement their production. “The big question they ask us is: ‘Well, where are the companies that will complement my production—raw materials, labor, and so on?’”

According to Sánchez, the strategy should not focus solely on attracting a large company. He explained that small and medium-sized enterprises capable of supplying parts, services, and other inputs necessary for operations could also be brought in around an anchor company.

“The possibility of small and medium-sized enterprises coming in to supply the parts needed for the company to be successful.”

Sánchez likened this approach to a “triple helix” model, in which private companies, educational institutions, and authorities at various levels collaborate to develop capabilities around a productive activity.

“First, based on that company’s needs, I develop a specific program in partnership with educational institutions, municipal, departmental, and national governments, and, of course, private companies.”

In addition to industrial suppliers, other experts noted that maintenance, training, and battery management services are also being developed in the field of electric mobility.

Pablo Lara, of NAVES GT, noted that one of the current challenges lies in preparing independent repair shops. Although he pointed out that Guatemala has mechanics and technicians with experience in internal combustion engine vehicles, he explained that there is still a need to expand specialized knowledge regarding electric vehicles. “Most independent repair shops are still just getting started. I think that’s a good challenge to overcome.”

Lara added that training programs for this type of technology already exist. “There are training courses at Intecap, as well as at some other institutions, and there is an increasing amount of information and training available.”

Pablo Saravia, general manager of REPELSA, also noted that maintenance companies will have to adapt as the number of electric vehicles on the road increases. “Maintenance companies will have to evolve to keep up with these technologies because there will also be a market to serve in that area.”

Saravia added that this chain also includes the repair, recovery, and environmental management of electric bus batteries. He stated that Guatemala already has the capacity to handle these components when they reach the end of their useful life. “We do currently have the capacity to receive them, handle them properly, prepare them, and dispose of them in an environmentally responsible manner.”

García explained that the company developed its own maintenance capabilities in-house due to a shortage of specialized technicians when it began operating electric vehicles in Guatemala. “It’s been 11 years since we started working on electro-mobility here in Guatemala; there weren’t any repair shops, let alone any electro-mechanics who could service our vehicles.”

Currently, he noted, the company’s technical staff is Guatemalan and receives specialized training abroad. “All of our technicians and engineers are Guatemalan; however, they travel to China two or three times a year for training so they can provide all this service for the vehicles.”

Sánchez noted that the availability of suppliers, raw materials, and personnel is one of the factors companies evaluate before setting up an operation. “We are constantly evaluating the possibility of creating clusters in the country through foreign direct investment.”

Regulation to Turn Demand into Local Investment

Experts agree that regulation and planning are key factors in ensuring that a potential expansion of electric buses translates into investment and capacity-building within the country.

Sánchez highlighted this point as one of the central elements when asked what would need to happen for the purchase of hundreds of electric buses to also generate local suppliers, jobs, and capacity.

Within the aforementioned “triple helix” framework, he added, local companies could participate as partners in a larger enterprise, while other small and medium-sized businesses could join as suppliers of the parts and services required for the operation.

The need for long-term planning was also highlighted by Nancy Chacón, vice president of AMEGUA. In her view, Guatemala would need to set specific goals for the adoption of electric public transportation to give investors an idea of the market’s potential size.

“Ideally, Guatemala should have a national electric mobility strategy that defines tangible goals and national objectives, in which the adoption of electric public transportation is a national goal.”

Chacón explained that such a definition would make it possible to determine how many units could be incorporated annually and, based on that volume, create conditions that would encourage companies to consider relocating assembly processes or other operations to the country. “Based on that, an annual volume could then be established to make the country attractive to all those companies so they can incorporate the technology and carry out assembly or the entire operation and manufacturing process here.”

García noted that tax incentives have supported the sector’s growth. He mentioned the tax exemptions applicable to the first purchase of electric vehicles and the benefits related to their use on the road. “We are currently continuing with the tax incentive law, which is what encourages the purchase of electric vehicles.”

He added that, based on the company’s experience with charging infrastructure, they have not encountered significant obstacles to installing equipment. As he explained, the main additional step that may be required when working with higher power ratings is coordinating with the electric utility company.

Sánchez also cited administrative efficiency as one of the factors that foreign companies evaluate before setting up operations. In addition to legal certainty, local partners, and the availability of workers, he mentioned administrative procedures, permits, and licenses.

The Talent Gap

The availability of specialized personnel is another factor mentioned by sources when analyzing the possibility of developing an industry related to electric buses and vehicles in Guatemala. The interviews show that technicians and training programs already exist, although they also point to the need to expand these capabilities as the number of vehicles increases.

Sánchez identified the talent gap as one of the challenges the country faces in attracting industrial operations linked to highly specialized sectors.

“There is a talent gap that I believe can be addressed through technical institutes and universities.”

When explaining what international companies look for before setting up operations in a country, Sánchez also mentioned the availability of skilled workers at various levels of an operation.

“A skilled workforce—that is a challenge we must all work on together to ensure there is a young pool of workers capable of performing tasks ranging from engineering to manual labor associated with these types of sectors.”

Pablo Lara, from NAVES GT, also noted that there are experienced mechanics and technicians in the country, although he believes the challenge lies in expanding their knowledge of the systems used in electric vehicles. 

“In Guatemala, there are many highly skilled mechanics and technicians. There is a very capable workforce and a great deal of expertise in servicing and working on internal combustion engine vehicles, but since electric vehicles are a relatively new development, not everyone is familiar with them.”

Pablo Saravia, manager of REPELSA, agreed that technical training must keep pace with the growth of electric mobility. He explained that maintaining these vehicles requires different skills than those used for internal combustion engines and that this specialization also affects battery management and extends their service life. “It has to be done by professionals because we can’t mix the mechanics of an internal combustion vehicle with those of an electric vehicle.”

Saravia noted that Intecap is already providing training related to these technologies and believes that maintenance companies will also need to adapt their services as the electric vehicle fleet grows. “Maintenance companies will have to evolve to accommodate these technologies because there will also be a market to serve in that area.”

Specialization would not be limited to day-to-day maintenance. Saravia explained that technical expertise will also be needed to inspect batteries, repair certain cells, and manage these components when they reach the end of their useful life. From his perspective, the country is developing these capabilities in tandem with the growth of electric mobility.

Gretexpa: “For intercity transportation, it would be very risky to consider switching to electric buses at this time”

In an interview with Prensa Libre, Carlos Vides, president of the Intercity Passenger Transportation Association (Gretexpa), stated that the sector does not consider a widespread transition to electric buses to be feasible.

Among the main obstacles, he mentioned the deteriorating road network, the buses’ range, the lack of a national charging network, and the investment costs involved in replacing the fleet and adapting the terminals.

What is the main obstacle today: the cost of the vehicles, the lack of charging infrastructure, the condition of the roads, or the range needed to cover the routes?

The four points you just mentioned are essentially the obstacles that currently prevent the transition.

One is the deterioration of the road network. The poor condition of the roads and the road surface—with many potholes—causes severe vibration and a very strong impact on the entire structure of the vehicle. Lithium batteries and the entire electrical system that powers these vehicles are sensitive to such impacts, which could increase maintenance costs and the risk of structural damage to the batteries.

Then there’s traffic congestion and battery performance. We can talk about ranges of 300 or 400 kilometers, but the density of vehicles on the roads doesn’t allow for fast travel. Add to that accidents and roadblocks.

For example, if a group of buses gets stuck between Santa Lucía and Mazatenango, who is going to come to the aid of two, five, or 10 buses in that area? There is no national network of charging stations capable of handling a situation like that.

In the most densely populated urban centers—such as Guatemala City, its surrounding Municipiums, or Quetzaltenango—the power grid may be more stable, but in rural areas, conditions are different and capacity is lower. All of this makes the transition to electric transportation more difficult.

Another very important factor is the cost of each vehicle, which can be two or three times that of a diesel vehicle.

Approximately how much must be invested to replace a diesel bus with an electric one, including all the charging infrastructure? And what is the difference compared to a conventional vehicle?

We would need to update the prices because we have a study from last year. Electric vehicles for cities have been on the rise, but here we are specifically talking about suburban transportation.

Just installing all the electrical infrastructure at the companies’ stations would cost millions. We currently do not have that financial capacity.

In addition, we would need to analyze the price of the buses, financing options, their range, power, and capacity. Guatemala’s topography is very unique. If you travel westward or toward Quiché, for example, there are slopes and curves that require evaluating the relationship between a vehicle’s range and power.

In the city, it may be feasible, and Municipiums  have resources and financial support from the government. In our case, as a private transportation provider, we do not have that support or the resources to make an investment of that magnitude.

One alternative could be for the government to facilitate the adoption of lower-emission diesel technologies, such as Euro V or Euro VI, or to explore hybrid options that combine diesel and electricity, while better conditions for an electric transition are developed.

Electrical infrastructure and topography must also be carefully considered, especially in departments where conditions differ from those in the metropolitan area.

If we focus on the capital city, which routes in Guatemala might be the first to be electrified, and which ones lack the necessary conditions to do so?

It could mainly be the Municipiums near the southern part of the department.

On routes that lead west or north, I think it would be more difficult to do so at this time. On the other hand, in places like Villa Nueva, where there is greater industrial activity, it might be a little more feasible.

We could mention Municipiums such as Mixco, Villa Nueva, and Amatitlán. Given the type of industry in those areas, a larger investment could be considered to begin the transition of suburban transportation to electric vehicles.

What must the government guarantee to ensure that transit operators consider investing in electric buses a viable option? Funding, subsidies, charging stations?

In our case, I wouldn’t mention subsidies because we try to avoid, as much as possible, relying on government funding.

First of all, there is no national network of charging stations for heavy-duty vehicles in the interior of the country, which leaves us vulnerable to the possibility of a vehicle breaking down.

We also need access to bank credit. Right now, it’s even difficult to obtain financing for diesel buses because the transportation sector is considered high-risk.

Robberies, extortion, and murders influence the banks’ risk assessments. Unless a company has its own funding, it is difficult to access resources to renew the conventional fleet; transitioning to electric buses would be even more difficult.

In addition, there would need to be sufficient electrical infrastructure and companies capable of bringing vehicles to Guatemala for testing, especially given the country’s topography.

Once these requirements are met, we could begin to evaluate the possibility of using electric buses, primarily on short routes.

There are already examples in the city and private companies that use electric vehicles. However, for suburban transportation, it would be very risky to consider a widespread transition at this time.

If a mandatory transition to electric buses were promoted today, would the cost ultimately be passed on to the fare?

I couldn't say at this point because we would first need to know exactly how much each unit costs and what infrastructure it requires.

From our perspective, the country does not yet have sufficient electrical infrastructure to consider a transition of this kind on a national scale.

Intercity transportation reaches various parts of the country, so there would first need to be infrastructure in place to allow these units to operate throughout the entire country.

That is why it would be very risky to estimate how much a ticket on an electric bus from Guatemala to Quetzaltenango, Petén, San Marcos, or the port of San José might cost.

I would not dare to set a price until those conditions are in place and we have the actual operating costs for an electric bus on intercity routes.

Taiwan’s Eximbank Sees Opportunities to Finance Investment and Manufacturing in Guatemala

The trade relationship with Taiwan could extend beyond the import of vehicles and technology. Eric Thai, president of the Export-Import Bank of Taiwan, noted in an interview with Prensa Libre that Guatemala has the potential to attract Taiwanese companies interested in electric mobility, energy storage, and other industrial activities, and highlighted the country’s location as a factor in developing operations geared toward the North American market.

What opportunities do you see for expanding trade and investment ties between Taiwan and Guatemala, particularly in sectors such as electric mobility?

Guatemala has products that are of great interest to Taiwanese companies; for example, we import Guatemalan coffee in Taiwan. But we also know that Guatemala wants to advance its technological capabilities.

In Taiwan, we have companies interested in partnering with local firms to promote electric buses, electric vehicles, and energy storage systems. There are also opportunities in e-commerce, where Taiwanese companies can find local partners, share their expertise, and jointly develop business models.

Furthermore, Guatemala is close to the United States and North America, so it could become an important manufacturing hub for Taiwanese companies, including high-tech firms looking to set up production facilities here.

This is an area with great potential where we can strengthen cooperation, deepen mutual understanding, and identify business models that benefit both countries.

How might financing for these types of projects work?

We see that Taiwanese companies are interested in investing here and that local companies can also find good partners in Taiwan. It’s a good start, and there is potential for both sides to find business models that are mutually beneficial.

We know that these models require financing. In addition to the refinancing facility—relending facility—and our products for overseas investment, we offer a variety of financial instruments.

We are ready to provide support. When a Taiwanese or local company has a concrete plan to develop a business model, we can tailor our products to support it, facilitate it, and help bring it to fruition.

We offer a range of services to help companies from both countries develop their projects.

¿What conditions or advantages do you see in Guatemala that could attract more Taiwanese investment?

Guatemala has seen improvements in its credit rating, which reflects the rating agencies’ recognition of its economic performance and growth.

It also has a strategically important location and a young population. In recent years, the country has made economic progress that has been widely recognized.

I am optimistic about Guatemala’s future. We greatly value our relationship with the country and look forward to continuing to explore various opportunities to strengthen our bilateral relationship, particularly in the business sector.

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