EvolvX Forecasts 15.8% Rise in EV Sales

Mexico’s appetite for EVs appears to be growing as sales are projected to increase 15.8% this year. Battery-powered units are expected to make up 93.5% of the sales volume, while plug-in hybrids (PHEVs) are poised for a notable surge of 66.5%. However, electric hybrids are anticipated to see a slight decrease in demand of 0.6% compared to 2022 figures, reveals EvolvX’s report ‘Latam Mobility Mexico 2023’.

The most recent data, covering the period from January 2016 to June 2023, reveals that low and zero-emission vehicles, including battery electric vehicles (BEVs), PHEVs and HEVs, now constitute 2.2% of the new vehicles sold in the national market. In the first half of 2023, these units accounted for 4.6% of the total sales, reflecting a minor increase from the 4.5% recorded throughout 2022.

The report also delves into the production of electric vehicles in Mexico. Between February 2020 and June 2023, a total of 192,422 units were manufactured. Leading in this segment is Ford, closely followed by JAC. The report predicts that by the end of 2023, cumulative production will rise to 223,000 units, including Chevrolet's contributions.

The report also examines investment trends. In 2022, investments in the automotive sector increased by 71.9% compared to the previous year. Moreover, the first half of 2023 saw a 61.3% increase compared to the same period in 2022. Notably, 65 projects were registered during this period, constituting 43.05% of total automotive investments up to that date.

In the realm of public transportation, the report highlights the adoption of electric buses in Latin America and the Caribbean. It notes that the majority of the 4,998 electric buses in the region are in Chile, Colombia, Mexico, Brazil and Ecuador. In Mexico, there are 623 electric buses, with Mexico City and Guadalajara being the primary hubs. Yutong and Sunwin dominate the market, representing 3.62% of the total buses in these two cities.

Ronaldo Sandoval, Manager of Analysis and Consulting, and Andrés García, Director of Mobility, Invest in Latam/EvolvX, presented the report and emphasized the challenges faced by the industry in Mexico. These include the need for strengthening charging infrastructure, streamlining regulatory standards and effective collaboration between businesses, government and academia.