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With political changes and changes in technology, electric vehicles are becoming more widespread. And Mexico’s already strong automotive manufacturing sector is preparing to capitalize on this trend. New companies are announcing investment in Mexico EV manufacturing, and predictions for growth over the next few years are overwhelmingly optimistic.
Last month, California dropped a bombshell on the world by passing legislation to ban all gas-only cars by 2035. This move has been viewed in the US as somewhat extreme, yet several other US states have signed onto California’s emissions standards. The goal is to reduce greenhouse emissions in the future by requiring all new vehicles in California and partnering states run on either electricity or a combination of electricity and gasoline.
This is a historic moment for California, for our partner states and for the world as we set forth a path toward a zero-emission future.
– Liane Randolph, California Air Resources Board Chair
It is likely that this will set into motion a trend to develop EV technology faster. Already, automotive manufacturers are identifying opportunities to re-tool existing factories or invest in research and development to propel this young industry forward.
In response, EV manufacturer, TESLA, called for a faster route to EV car sales. Toyota also is investing heavily in plug-ins. And Steve Douglas, a vice president at the Alliance for Automotive Innovation, has announced these changes represent “the most sweeping and transformative regulations in the history of the automobile.”
Mexico is already a leading automotive manufacturer for the world, and investment in this sector is rising rapidly. Currently, Mexico:
While automotive manufacturing represents a full 3% of the manufacturing output of the country, currently, the country is only selling about 45,000 units per year. But Mexico is not sleeping. As this monumental shift occurs in the automotive industry, Mexico EV manufacturing is kicking into high gear and preparing to capitalize on this trend.
Consultancy firm, Frost & Sullivan, recently forecasted that sales of EVs and hybrid vehicles in Mexico will grow at a sustained rate of about 25% per year through 2030 to eventually produce two thirds of Latin America’s EV output.
These growth predictions are substantiated by solid growth signals and tangible moves to increase Mexico’s capacity for manufacturing electric vehicles.
In addition to a $700 million USD investment in their Mexican automotive production, Nissan also announced they are bringing the Nissan Kicks e-POWER technology to Mexico. Labelled the “electric rebellion,” Nissan claims this new technology will help their fleet achieve 50% electrification by 2030.
General Motors recently announced a new investment in Mexico EV manufacturing in the amount of at least $1 billion USD. Their Ramos Arizpe production complex is set to produce at least one electric vehicle beginning in 2023.
Stellantis NV, the owner of Jeep, Ram, and Peugot brands, is in discussions with Mexico’s President Obrador over retooling their Saltillo, Coahuila plant to manufacture electric and hybrid vehicles. The move represents multiple billions of dollars in future investment. They are also considering investment in EV manufacturing at their facilities in Mexico state, where they already make the compact Jeep Compass crossover, soon to be electrified in 2024.
Noodoe, a global leader in EV charging technology, recently announced their expansion in Mexico. The company has extended their charging footprint in Mexico by installing multiple stations at the Holiday Inn Express & Suites Otay.
The Mexican government is also getting into the act. They recently announced that Mexico will host up to 180 production plants for EV components within just a few years. They’re already planning to expand the Santa Teresa, New Mexico, port of entry in the next year to accommodate explosive growth in Mexico EV manufacturing activity along the border.
California…has decided that all of its new vehicles must be electric by 2035. What does that mean? That we must build factories to manufacture batteries, that we need to procure lithium, cobalt, copper and nickel, that we need to modify all of our industrial processes, that we need to accelerate the technology that goes hand in hand with electromobility.
– Mexican Foreign Secretary Marcelo Ebrard
The Mexican government is working with government officials in the US and global auto makers to ensure the country’s manufacturing infrastructure can support crucial activities and requirements like engine production, energy accumulation and storage, and speed controls, etc. It is likely that in the next few years, as demand rises, Mexico EV manufacturing will rise up to meet it.