Venezuela, with its rich oil deposits and proximity to the United States, seems like an ideal place for industrial development, including the automotive industry. However, the reality is far from expectations. Despite cheap gasoline, which costs less than three rubles per liter, the country faces fuel shortages, long lines at gas stations, and an active black market. PDVSA's refineries cannot cope with domestic needs, and some fuel is imported from other countries, such as Iran.
Venezuela's car production volumes remain low. In 2024, only 1245 cars were produced in five months, which, compared to 14 units in the same period in 2023, gives an impressive percentage increase. At the same time, the country's population is about 30 million people. To understand the current situation, it is important to look at the history of the country, when foreign companies began extracting oil and building automotive infrastructure in the 1920s.
The first attempt to create a local armored car, Tortuga, in 1934 was based on a Ford truck and remained extremely limited — only 12 copies. For decades, political upheavals and changes of power did not prevent oil from remaining the basis of the economy, and the United States actively invested in the industry, creating joint ventures and supplying food and cars.
In the mid-20th century, oil prices fluctuated, and Venezuela either lost or regained its position in the global market. In the 70s and 80s, the country again became a major oil player, and full-size American cars and SUVs flooded its market, which was a consequence of cheap fuel and the wealth of petrodollars.
Joint ventures with foreign automakers actively developed. In the 40s and 50s, assembly lines were opened with General Motors, Chrysler, and Ford. Both trucks and passenger cars were produced, including models that later became icons — Torino, Mustang, Bronco. In 1981, Toyota entered the Venezuelan market, starting assembly of Corolla, Hilux, and Land Cruiser.
At the turn of the 80–90s, economic dependence on oil led to strict austerity and nationalization programs. With the arrival of Hugo Chávez in power in 1998, the country embarked on a socialist path. He nationalized part of the industries, created Venirauto Industrias, and launched the people's cars Turpial and Centauro with the support of Iran, but the technologies remained outdated.
Venirauto, designed to assemble 25 thousand cars per year, eventually produced only about 20 thousand cars from 2007 to 2015. At the same time, foreign manufacturers left the market: Ford, Hyundai, Mitsubishi plants were closed, and GM assets were seized. Only Toyota maintained its presence, but the models remained expensive for Venezuelans.
In the early 2010s, Chinese companies Chery and JAC entered the market. They organized large-node assembly, offered affordable models, and actively used credit programs for the local population and co-owners of joint ventures, including the government. Later, BAIC, Changan, Great Wall, and Foton joined them. There are no local factories yet, but their opening is being considered. Old American cars still make up a significant part of the Venezuelan car fleet, kept running thanks to the ingenuity of their owners.