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Mexico Depends on External Stimuli to Massify the Sale of Electric Vehicles

Mexico Depends on External Stimuli to Massify the Sale of Electric Vehicles

In January and February, the country sold 9,209 "Green" Vehicles, which meant 39% more than in the same period in 2022.


The sale of electric cars in Mexico will depend on the stimuli and the development that occur in the foreign market to accelerate their purchase in the country , given the lack of public policies and stimuli from the government in support of electromobility , said Guillermo Rosales , president of the Mexican Association of Automotive Distributors (AMDA).



Unlike countries like the United States , where incentives are applied for the purchase of electric cars or some examples of Latin American nations, such as Uruguay , in Mexico no support measures for the market and producers have been announced , despite the announcement of several investments by automakers such as Tesla, BMW, GM and Ford to manufacture their electric models here .


"Zero incentives from the government, zero willingness to do so, to modify tax schemes as happens in other countries, and well, everything will be run by the market, supply and demand ," said Rosales.


The sale of hybrid and electric vehicles in Mexico has accelerated in the last year. From January to February 2023, 9,209 units were sold in the country, according to Inegi figures , which represented an increase of 39 percent compared to the 6,616 H&E units sold in the first two months of last year.


However, in order to achieve massive or larger-scale sales , according to the AMDA representative, it will be more likely that everything will depend on the initiatives of foreign assembly companies in the development of electric cars to accelerate the market in Mexico . “Global competition and the subsidies for development that the main countries are making will have the repercussion in the medium term that the manufacturing prices of electric vehicles tend to decrease at some point and become equal to those of internal combustion vehicles. So, markets like ours, where there is no public policy to support the transition to electromobility , we will have a massive reach of them, ”he asserted.


In this regard, Germán Galván, partner of the consultancy Roland Berger México, told El Financiero that Mexico must generate real incentives accompanied by a public policy that guarantees the infrastructure, generation, and use of clean energy , which makes the country competitive to take advantage of investments in matters of electrification , for which the interests of the private sector and the government must be aligned .


“It is not just a matter of land or a payroll tax discount , or any of the generic incentives that we have often seen in the markets, but really a program that gives Mexico a license not only to play, but to compete and win in this electromobility space ”, he pointed out. He stressed that the investments of companies such as Tesla , as well as initiatives in the government to move towards electrified public transport and the development of infrastructure , will boost the country in the electric vehicle industry and the mass sale of units in the domestic market.


On the other hand, Mexico could take as an example some cases in Latin America such as Uruguay or even Brazil , to move towards electromobility and lead the region, said Arturo Simone, CEO of Grupo RDA and Keko México. “Other cities in Latin America in terms of electromobility , what they are doing for the acquisition of vehicles is removing certain types of taxes , what others are doing is benefiting the payment of taxes on license plates ; Uruguay has multiple benefits that seek companies like ours that what they give are rental cars, ”she said in an interview.


He pointed out that Mexico is behind in the issue of generating benefits but is on the road like Argentina and Colombia . “The charging stations that Mexico has are more than 3,500, it is encouraging, we are willing to invest in charging points as well, we must work together (with the government), he added.

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