Electromobility in Mexico City is One Step Closer

Mexico’s City Environmental Commission Congress approved the initiative to sell exclusively EVs by 2040 and that by 2050 all ICE vehicles will be banned from circulation in the capital, including natural gas and hybrid models. The new article added to the Law on Mitigation, Adaptation to Climate Change and Sustainable Development, which seeks to establish definitive dates for the total transformation to electromobility. 

Initially proposed by Jesús Semsa Suárez, Deputy of the Ecologist Green Party of Mexico, the initiative originally aimed to prohibit the sale and circulation of ICE vehicles by 2032 and 2037, respectively. However, these dates were postponed after analyzing alongside the local Environment Ministry the current state of Mexico’s automotive industry. 

"The Local Climate Change Strategy should consider the necessary incentives to promote measures that motivate an increased acceleration renewal of the vehicle fleet units for the sole existence in circulation of electric cars by the year 2040, as well as the relevant disincentives for the total elimination of internal combustion units by the year 2050."

The resolution is still pending approval by the plenary of Mexico’s City Congress. If ratified, the initiative would also prohibit the circulation of public transportation powered by ICE vehicles, bringing Mexico closer to other countries that have deadlines for the use of fossil fuels in local and regional means of transportation. 

Automotive companies around the world are facing critical shifts regarding electromobility, which is also causing issues among traditional manufacturers. Stellantis, for example, recently called for a negotiation of the EU’s proposal to effectively ban the sale of new ICE vehicles by 2035, as the company calls for hybrid models to be a middle step towards this goal. "The dogmatic decision that was taken to ban the sale of thermal vehicles in 2035 has social consequences that are not manageable,” said Carlos Tavares, CEO, Stellantis, as reported by MBN. 

Mexico’s automotive sector has highlighted the importance of government's support in providing adequate initiatives to promote electromobility in the country. “Mexico has some barriers to electromobility as many players are committed to a carbonized transport system. However, many companies are shifting towards emission free vehicles. The problem is that the transportation sector and OEMs cannot take this journey on their own; they need support from authorities and politicians to incentivize this infrastructure,” said Stefano Fedel, Executive Vice President, Head of Sales and Marketing, Scania Group, to MBN. 

According to Rogelio Ramírez de la O, Minister of Finance and Public Credit, the government is working to provide an accessible guide for automotive companies that have already invested in electromobility or wish to do so in the future. “We can offer reliable guidance to companies planning for the long term to ensure sufficient energy supply and a realistic and effective transition to clean energy as part of a comprehensive process,” as reported by MBN.