Mexico’s electric vehicle (EV) market has been gaining momentum, with the country poised to follow in the footsteps of Europe, China, and the United States. However, despite its potential, Mexico’s adoption of passenger electric vehicles has been hindered by the lack of government incentives. A recent report by the AMIA highlights the stark contrast between EV penetration rates by 2030, with a comprehensive policy expected to achieve a rate of 38.9% compared to 19.1% without one.
Research suggests that consumers’ major concerns about not adopting hybrid and electric technologies are range anxiety and cost. However, studies have found that cost parity with internal combustion engine (ICE) vehicles will allow the EV sector to rapidly increase deployment. In fact, over 93% of customers would prefer to purchase an EV if it were the same price as an ICE vehicle.
To support the growth of the EV market in Mexico, implementing fiscal incentives for adoption and manufacturing is crucial. This could include tax credits for the construction of EV manufacturing plants and incentives for EV research and development. Additionally, companies like VEMO are promoting electric vehicle adoption through lease-to-own operations and ride-hailing programs.
The increasing presence of electric vehicles also highlights the need for rapid development of auxiliary aspects such as charging infrastructure. Companies like VEMO are addressing this issue by deploying charging stations and offering ride-hailing services to help alleviate range and charge anxiety.
Chinese investment in Mexico is also playing a significant role in the country’s EV sector, with Chinese manufacturer BYD planning to build a manufacturing facility in Mexico. Additionally, European automakers such as BMW have invested heavily in the country, including a €800 million investment in San Luis Potosí, which will create an estimated 1,000 jobs and produce electric vehicles from 2027 onwards.
Overall, the growth of the EV market in Mexico offers a promising outlook for the industry as a whole. With the right policies and incentives in place, Mexico can become a major player in the global EV market.
Source: Clean Technica