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News Article

Mexico to Meet Hybrid, EV Goal by 2030: President

By Rodrigo Andrade | Wed, 07/20/2022 - 15:30

During the visit to the US, President Andrés Manuel López Obrador highlighted his administration’s commitment with alternative energies. His government aims for half of the total vehicles manufactured in Mexico to be electric or hybrid by 2030. López Obrador said that his administration is making the necessary changes so businesses have security and certainty while investing in the country.

“President López Obrador has just announced (in the meeting he held with his counterpart Joe Biden) that Mexico is committed to clean energy. We are working on that, there are already several automotive companies working on the manufacturing of the first electric vehicles in Mexico. Just yesterday another automotive company announced it [would manufacture those vehicles] by the end of the year, so the path is set and it is taking advantage of the opportunities in Mexico”, said Elodina Guerra, General Director of Heavy Industry and High Technology, Minister of Economy.

To increase production of electric and hybrid vehicles, the automotive industry needs support from the Mexican government, said José Zozaya, President, Mexican Association of the Automotive Industry (AMIA), during the 24th edition of INA PAACE Automechanika 2022. The commitment “gives us confidence because it tells us that the government is concerned and busy in Mexico to continue producing cars with clean energies, which will be required from now on,” said Zozaya.

Experts agree that the production of electric and hybrid vehicles is a must for Mexico. Consultancy firm Frost & Sullivan forecast this market will grow by 25 percent by 2030. However, sales of these vehicles remain low. In 2021, only 47,079 electric and hybrid vehicles were sold in Mexico, according to the Mexican Association of the Automotive Industry (AMIA), as reported by MBN.

“Our industry needs to look to the future, in the last couple of years the sector has made important advances but also suffered complicated moments such as shortages in supplies of raw materials and components or cost increases derived from the pandemic. As electric vehicles gain market penetration, auto parts manufacturers are preparing to take advantage of new opportunities,” said Francisco González

Electric and hybrid vehicles also need investment in infrastructure to fully penetrate the Mexican market. The country needs charging stations, access to green energy and competitive prices. “The availability of clean, sufficient, available and competitively priced energy is fundamental not only for vehicles for domestic consumption, but also because the automotive sector is committed to manufacturing its vehicles with clean energy,” said Zozaya.

“There is no point in having an electric vehicle, regardless of its autonomy, if there is no place to charge it, so we need an offer from the government, hand in hand with the private industry, to set up these charging corridors. This is the only way to reach this goal,” said Zozaya.

Rodrigo Andrade Rodrigo Andrade Junior Journalist & Industry Analyst