Mexican Companies Will Drive EV Adoption Forward
EV’s high costs have led many in Mexico to consider them “luxury vehicles” but, by using them, businesses stand to see massive annual savings on fuel and be convinced that electrification is a worthwhile investment, said French automobile manufacturer Renault.
“With one client we analyzed that their monthly fuel consumption varied between MX$20,000 (US$964) and MX$25,000 (US$1,204) per unit because they are constantly circulating. This is over MX$240,000 (US$11,561) annually in fuel; the (electric) vehicle is worth MX$700,000 (US$33,722), you pay it back in less than three years, the expense is offset and the rest is savings,” said Magdalena López, General Director and President, Renault Mexico.
Although the global automotive field is rapidly electrifying, Mexico seems to be staying behind. Between Jan. and Oct. 2021, only 768 EVs were sold in Mexico, which is less than 0.1 percent of global sales of EVs, according to data from the Mexican Automotive Industry Association (AMIA).
While the lack of charging stations in the country and the ongoing shortage of semiconductors certainly contribute, the high prices of EVs are the largest barrier for many potential buyers. Currently, the average electric vehicle can be accessed for US$30,000-US$35,000, a price too high for most Mexican drivers. However, companies stand much to gain from the adaptation of these vehicles,
EVs could be affordable options for Mexican companies, especially in last-mile logistics, López said. The savings achieved by using EVs for last-mile logistics can be used to, for example, increase the number of vehicles in transit. Savings from the use of EVs can represent between 19-35 percent in developing countries and 66-69 percent in the EU.
The French auto company will continue pushing its Zoe e-Sport, Twizy and Megane models in Mexico. López says the company’s EV expansion plans were set back due to the semiconductor crisis but its most popular model in the country is the Kangoo Z.E.
According to López, companies are also utilizing green hydrogen technologies to drive down carbon emissions rates. DHL Express, for example, has been testing a hydrogen truck for deliveries since November. However, the most accessible and ready-to-use technology companies of any size can access are EVs, she said.