Mexico Faces Challenges in Electromobility Transition

Mexico’s electromobility industry is thriving but the lack of infrastructure and fiscal incentives could affect its growth. In addition, Mexico’s automotive industry will continue to grow with the adoption of new industry trends driven by nearshoring, say industry associations.

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Lack of Infrastructure Slows Down Electromobility Transition

Experts highlighted that Mexico is experiencing a great time regarding the transition toward electromobility. However, this opportunity could be delayed due to a lack of adequate infrastructure, such as charging stations. According to INEGI, hybrid and electric vehicle sales reached 4,263 units in January 2023, representing an increase of 30.9% over the 3,257 vehicles sold during January 2022. Mexico City, the State of Mexico, Nuevo Leon and Jalisco saw 56.3% of the country’s sales. Moreover, during this period, purchases of fully electric cars rose from 237 to 665 units, which represented an accelerated increase of 181%.

Automotive Industry Is Mexico’s “Engine”: AMIA

Mexico’s automotive industry will continue to grow with the adoption of new industry trends driven by nearshoring, say several industry associations. Nearshoring is expected to attract numerous investments and further grow the industry’s role in the Mexican economy. “Mexico would obtain up to US$33.5 billion annually for nearshoring. Very good news for our economy after months of uncertainty,” writes Vladimiro de la Mora, President, GE Mexico, for MBN.

Falcon Premium Intermodal Will Connect Mexico, the US and Canada

Canadian National Railway (CN), Union Pacific Railroad (UP) and Grupo Mexico Transportes (GMXT) introduced the Falcon Premium intermodal service, a Mexico-US-Canada service with a seamless rail connection in Chicago, Illinois. The project will connect all CN origin points within Canada and Detroit, Michigan, to GMXT terminals in Monterrey, Nuevo Leon, and Silao, Guanajuato. The intermodal rail will serve customers shipping automotive parts, food, home appliances and temperature-controlled products, among many others.

Mexico Attracts 200 Automotive Investments

The Ministry of Finance and Public Credit (SHCP) announced that Mexico has attracted more than 200 automotive investment projects, mainly from China, Japan and the US. The new investments include the production of batteries for electric cars, transmissions and wheels.

In 2023, the largest recorded investment was from global electric car manufacturer Tesla, which chose Nuevo León to build its Gigafactory. The Gigafactory will produce components for the company's current vehicle models. However, it could later develop new models at a lower cost compared to other car factories. 

Aguascalientes to Host Automotive B2B Meeting in North America

Aguascalientes has been chosen to host the North America Automotive B2B Meeting, an important business event that will bring together the most important buyers and suppliers of the automotive industry from North America. Japan and South Korea will also participate in the meeting by showing their main technological advances in the sector.