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News Article

BMW to Produce EVs in Mexico

By Sofía Garduño | Fri, 05/27/2022 - 12:12

BMW plans to produce electric vehicles (EV) in Mexico at its San Luis Potosi plant. The BMW 3 Series Sedan and the iX3 electric crossover will be the two models that this plant will manufacture. Production is expected to start in 2027 and San Luis Potosi will become the first center of EV production for the automaker. The plant currently produces the BMW Series 3 and the BMW Series 2 Coupé and will begin producing the second generation of the M2 in late 2022.

 

“Mexico will play an important role in our complete setup. At some point in time, you will see X models because the market demand is so high,” said Oliver Zipse, CEO, BMW.

 

BMW is one of the leading automakers of the EV market. The automaker has continuously expanded and improved its electric offering as part of its sustainability strategy. The BMW iX3 produces 40 percent less carbon emissions than previous X3 models. However, the emissions can decrease by 67 percent if the battery is charged using renewable energy only.

Meanwhile, the BMW 3 Series Sedan offers efficient driving with an all-electric range. Moreover, the brand has been working to reduce the overall footprint impact of its EVs’ supply chain.

 

“San Luis Potosi benefits from the experience and best practices of the BMW Group Global Production Network. The plant is sustainable, innovative and highly flexible. Our highly motivated and qualified team is integrating this new model seamlessly into its production,” said Milan Nedeljkovic, Member of the Board of Directors, BMW AG.

 

The San Luis Potosi plant aims to be the group’s first carbon neutral plant. All of the electricity used at the facility comes from renewable energies. The plant is the first one among the BMW group to completely eliminate water use during the recovery of paint waste. The plant aims to grow its water treatment plant to increase its capacity to treat and reuse water during 2022. Currently, the plant has 3,000 employees, as reported by a previous article of MBN.

 

Mexico has become a hub for EV production. Ford, for example, has produced over 300 units per day of the Mustang Mach-E in Mexico since 2020. Eighty percent of Ford’s plant in Cuautitlan had to be renovated to be able to produce this model. GM also transformed its plant in Ramos Arizpe, Coahuila, to start producing EV. Moreover, Tatiana Clouthier, Mexico Ministry of Economy, recently said that a US automaker will start manufacturing EV in the north of Mexico. The official announcement will be made after local elections, she added.

 

Nonetheless, the production of EV and hybrid models has not boosted Mexico’s transition to electromobility as there is a severe lack of charging stations which hampers the road towards neutrality. As of January 2022, Mexico only had 2,100 charging stations for EV while the US, in comparison, had about 42,500. There are no upcoming plans to increase the number of chargers available, so efforts to increase the circulation of electric and hybrid models are still lacking.

The data used in this article was sourced from:  
MBN, BMW, El Financiero, Bloomberg, Cluster Industrial,
Photo by:   pixabay , adymyabya
Sofía Garduño Sofía Garduño Journalist & Industry Analyst