Good Forecast for Alternative Energy Vehicles in Mexico

Toyota Mexico sold 60,000 hybrid vehicles in Mexico between 2010 and Jan 2021, reports T21, and became a leader in hybrid vehicle sales in the country. “The road that the Prius started in 2010 has given us year-on-year sale records in this segment. In 2020, we sold 13,055 electric units, which was around 17 percent of our total sales. This evolution has allowed Toyota to become a leader in this segment in Mexico. We are proud to have reached 60,000 in slightly over 10 years,” assured Guillermo Días, Vice President of Operations at Toyota Motor Sales in Mexico, according to T21.

What does this mean for alternative energy vehicles in Mexico? Sergio Martínez, CEO & Partner at Hispano Suiza, highlighted that Mexico City is ideal for the implementation of electric vehicles, due to its large vehicle pool, infrastructure and a public sector that understands the environmental and sanitary effects of carbon emissions, at a conference during the LATAM Mobility Virtual Summit 21, according to Automotores Informa. Nazareth Black, CEO of Zacua, mentioned that if one mixes Mexico’s geographical position, the maturity of the auto industry and the experience of companies in the country, growth can ensue. “Zacua forecasts areas of opportunity with USMCA. We see great opportunity where participants can work together to create alliances that benefit the development of the country,” said Black at the conference, according to Automotores Informa.

Toyota predicts sales will improve this year. It forecasts the sale of about 80,000 vehicles in the Mexican market, with 20 percent of those being hybrid vehicles, reports El Universal. “As a part of the environmental challenge we set ourselves for 2025, we are planning to reduce CO2 emissions by introducing more alternative energy vehicles in all the segments in which we compete,” said Días.

However, Black told MBN that bigger car brands “are simply delaying the arrival of electric vehicles.” In Mexico, there are hundreds of possibilities when choosing an internal combustion car but in the case of electric vehicles there are less than 15 options, she said. Black argues that Mexico can turn its national talent towards electric car development, with the country becoming a producer of positive technology and a driver of sustainable mobility.

The big challenge, according to her, is to increase the existing vehicle options by developing new electric models, implementing better government incentives and increasing investment in charging infrastructure. She believes Mexico must work on educating people to internalize the urgency of making this transition toward electromobility. Another challenge lays in restoring the country’s manufacturing capabilities, which were affected by natural gas outages, semiconductor shortages and stricter sanitary measures to prevent the spread of COVID-19 implemented in many Mexican states.