Mexico Needs to Take Action To Achieve Electromobility

Innovation in material technology is proving to be key for the automotive sector, as electromobility becomes a priority for OEMs around the world and clients demand more sustainable mobility options. EVs require vastly different materials from internal combustion engine (ICE) vehicles, further increasing the need for the optimization of materials and manufacturing processes to make lighter and more efficient vehicles. 

Mobility Involves More than Vehicles 

Getting from point A to point B in major urban cities is becoming increasingly complex, and current solutions do not fully meet the demand for efficient transportation. “Mobility as a concept has changed, it is no longer a synonym for cars, now they only play a part in it,” said Miguel Barbeyto, President and Director, General Mazda Motor Mexico. 

Barbeyto highlighted the role that electromobility will play in the future of Mexico’s industry, as the country has amazing opportunities in this area. However, to achieve them, the industry must be able to adapt to the new demand and challenges. "There is a tremendous opportunity for electromobility suppliers in Mexico. Customers are demanding that brands innovate and produce new alternatives for mobility. It is the responsibility of companies to create these solutions,” he said. 

A single solution might not be enough, as there are hundreds of variables that affect the culture, politics and economy of one place. Thus, companies must offer realistic alternatives to all Mexican customers without ever losing out of sight the most important aspect of every industry: the people behind the brand and the end customer, said Barbeyto. 

The Future of Hybrid and Electric Vehicles in Mexico

Mexico has a unique opportunity in electromobility as it is one of the few countries with the luxury of having a large domestic market and the manufacturing capacities to be a powerhouse in exporting vehicles, explained Carlos Zarlenga, President, Stellantis Mexico.

Mexico is one of the most important commercial partners of the US automotive sector thanks to the Latin American country’s great competitiveness, low manufacturing cost, high efficiency and quality labor. However, most of the country’s existing infrastructure was created for ICE vehicles. As EVs gain popularity and the demand for them increases, it is key for Mexico to adapt to maintain this privileged place as a manufacturing powerhouse. 

Zarlenga adds that there is no going back as the most important automakers are planning to go emission neutral by 2038, while also investing heavily in building a fully electric portfolio. This trend only reinforces his idea that Mexico must take the right decisions now. “Mexico needs to make decisions now to be the main actor in the manufacture of EVs for the US market,” said Zarlenga. 

Experts agree that the country needs to invest in infrastructure. Collaboration between major trading partners and the government is critical to obtain this investment, as Mexico has all the tools to transform its energy consumption patterns. 

Materials to Shape the Car of the Future

Innovation in material technology is proving to be key for the automotive sector, as electromobility becomes a priority for OEMs and clients demand more sustainable mobility options. EVs require very different materials than ICE vehicles, making this a great moment for the optimization of manufacturing processes. 

“The automotive industry is in the middle of a major transformation. The road towards electromobility bring significant changes in the assembly of a vehicle. EVs need 2.5 times the content of chemicals per unit when compared to ICE vehicles,” said Mark Szendro, Director of Battery Materials, North America and CEO, BASF All America LLC.

The new powertrain structures affect the entire automobile. There is a clear demand for a broad range of flexible solutions, which can only be tackled with the right innovation of materials and chemicals. Szendro also highlighted the importance of a circular economy, as there is simply not enough raw material available to keep up with the current consumption rate. 

Analysis of the Automotive Sector's Budget for 2023 

Inflation has led countries to lower their growth expectations for next year. In 2021, the lines between inflation and GDP crossed, causing stagflation for the most important countries around the world. As a result, the US and Mexico started to implement actions to reduce and control inflation. However, the global panorama does not seem optimistic, as the aggressive measures taken could result in a recession. Despite the challenges, Mexico’s automotive industry is in a good position to continue growing.