Mexico leads in Latin America in the sale of fully electric vehicles and charging stations, even though there is no official policy; AMIA calls to stimulate this market.

In Mexico there is still no official transition policy to electromobility , however, in 2022 it was the country in Latin America with the most sales of electric vehicles and everything seems to indicate that this trend will continue in the following years.

Over the years, interest in electric vehicles has been increasing in the country and last year alone, 6,000 fully electric units were marketed , which represented an increase of 33% compared to 2021, according to Statista. 

Thus, Mexico was the leader in the commercialization of 100% electric cars (BEV) in Latin America in 2022, followed by Brazil with 5,100 units and Colombia, with 2,400.

For the international statistical portal, the country will reach 18,900 electric cars in 2026, which would cause sales to triple in three years , because the demand for electric cars in Mexico is the highest in the region, since in Brazil would reach 16 thousand vehicles and in Colombia, 7 thousand.

The adoption of a comprehensive transition policy towards electromobility can increase the penetration of electric cars until reaching 39% of total light vehicle sales in Mexico by 2030, says the Mexican Association of the Automotive Industry (AMIA). In contrast, if this policy did not exist, its proportion in the market will be only 19%, indicates the study “Recommendations for a national electromobility policy in Mexico”, ordered by the AMIA.

In addition, the report shows that consumers are currently willing to adopt vehicles with more advanced technologies and that are environmentally friendly, supported by incentives that make their acquisition easier. “Some of the reasons for the low adoption of this new technology in the region have to do with the high price of the models, mostly imported from high-income economies, and the incipient level of development of charging infrastructure,” Statista stated.

In this sense, the company estimates that in Mexico there were more than 1,300 electric charging stations available in 2022, but, on the contrary, in Argentina there were around 200. On a global scale, there are around 150,000 charging stations in 75 thousand locations , which are mostly located in the United States, Germany, Holland, the United Kingdom and Italy.

“Paradoxically, the region contributes a large part of the metals necessary for the production of these automobiles in the world, such as lithium and copper,” highlights the report based on the Latin American panorama. In the first half of 2023, 30% more hybrid and electric cars were sold than last year, with June having a record sales month: 81% more than in 2022.

As for 2023, the Mexican Association of the Automotive Industry (AMIA), based on the latest information published by the National Institute of Statistics and Geography (INEGI), reported that in June the sale of hybrid and electric vehicles was 6 thousand 785 units.

The total figure for the sixth month of the year is 81% higher than that registered in the same month of 2022 and represents 5.6% of the total. In detail, in June 5,034 hybrids were purchased, 1,176 electric and 575 plug-in hybrids, the latter also known as plug-in hybrids and which are made up of two engines, one combustion engine and the other electric.

In this way, between January and June 2023, a total of 30,023 vehicles with this type of technology were sold in the domestic market, 30% more than last year. 100% electric cars are the ones that increased their sales the most (+200%), going from 1,703 units in the first half of 2022 to 5,306 in the same period of this year.

Returning to the study “Recommendations for a national electromobility policy in Mexico” , ordered by the AMIA, it exposes the challenges and opportunities that Mexico faces in the transition towards zero-emission mobility, highlighting the relevance that electromobility has in the fulfillment of commitments international, such as the Paris Agreement and those of the automotive companies themselves that operate in Mexico.

“The study consisted of an analysis of the market, as well as the manufacturing of this type of vehicles, a review of the current state of charging infrastructure, the needs of current and potential customers, as well as an international comparison of good practices,” explained José Zozaya, executive president of the AMIA.

He highlighted that “Mexico must have a national policy for the orderly transition towards electromobility”, which leads to a joint government and industry strategy, and recommended that the three objectives should be incentives for production and consumption, the development of infrastructure load capacity at the national level and the availability of sufficient and affordable clean energy.

He noted that “the magnitude of the changes required for the rapid transformation of the industry requires the promotion of a joint strategy” between government, academia and industry in three axes: manufacturing, market adoption of hybrid and electric vehicles, and infrastructure. of the cargo network.

The AMIA study states that with this policy, “Mexico would be positioned as a leading global player in the manufacturing of electrified vehicles” and as a manufacturing “hub” and reliable provider of a solid supply chain within North America. In addition, the transition would support the reduction of some 26.2 million tons of carbon dioxide (CO2) by 2030.

The study, commissioned by the international consulting firm Frost & Sullivan , also highlighted the need to increase the number of charging stations to achieve adoption of electrified vehicles, that is, plug-in hybrid electric vehicles (PHEV), 100% battery electric vehicles (BEV). , and fuel cell electric (FCEV).

In Mexico there are about 1,336 public or semi-public charging stations, with a total of 3,206 connectors, that is, 2.4 connectors per station. “Although Mexico is the country with the largest cargo network in Latin America, it is still far below the countries that have advanced the most in the world,” the report indicates.

AND THE WORLD, HOW IS IT GOING?

Despite the negative impact of the pandemic on the automotive industry and the global shortage of microchips, electric vehicles took a big leap in many countries in 2022. According to an analysis by PwC and Strategy&, battery electric vehicles (BEVs) accounted for 14.3% of new car purchases in 14 large markets last year, up from just 4.1% in 2020 and 8.2% in 2021.

While several European markets, as well as China, expanded double-digit market shares in 2022, the United States lagged with a pure EV share of just 5.3%. As in previous years, Norway was a positive outlier with a purely electric car share of almost 80%, while Sweden, the Netherlands and Switzerland were also high on the list.

Although measures such as tax and toll exemptions and other economic incentives and financial aid have been very effective in promoting electric mobility in Norway, this model cannot easily be transferred to other countries. Firstly, because of its cost, since Norway subsidizes the purchase of electric cars at a level that few countries could afford. And secondly, because it is an economy with one of the highest income levels in the world (ironically thanks to its oil reserves), which represents a clear affordability advantage for the population.