Mexico on the Road to Electromobility

Q: Vitesco Technologies aims to provide sustainable mobility solutions. What are the core values that help the company achieve this goal?

A: The company was part of the Continental Group until 2019 and achieved a definitive separation in 2021. As the powertrain division of Continental’s powertrain division, Vitesco Technologies focused on mobility solutions for internal combustion engine (ICE) vehicles. However, the company observed the global migration toward more sustainable and cleaner mobility, and shifted its vision to promote clean solutions and electromobility.
We aim to set the foundations for cleaner mobility through electrification, as we also seek to develop intelligent and reliable solutions. These solutions aim to make electromobility possible for any type of market, any vehicle architecture and any person.

Q: How does innovation in ICE vehicles support the generation of realistic short and medium-term sustainability solutions?A: The migration toward electric vehicles (EV) is a priority but the migration toward sustainable and cleaner mobility involves much more than electric cars. ICE systems will still be present for a long time, which is why the company aims to continue offering different solutions that increase thermal efficiency, reduce emissions and, overall, reduce fuel consumption.

At Vitesco Technologies, we are aware that there is no route other than an electric future. Thus, the company is heavily investing in the development of new technologies, anticipating the growing demand for EVs in the coming years. This will be the case especially in North America, which is a region where the use of these cars still has a great deal of potential.

Q: What are some of the major challenges that the Mexican automotive industry faces when seeking to implement sustainable mobility solutions?A: We face major challenges in implementing sustainable mobility solutions. While the EU and Asia have a clear advantage over North America, Mexico is still imitating what is happening in the US. We are significantly behind the US, which is already popularizing the use of EVs through incentives and regulations to motivate their acquisition.
In Mexico, the number of charging stations is still limited. Efforts by the public and private sectors to create the necessary legislation to provide more affordable financing have been insufficient. The country is behind but it is clear that it is on its way to caching up. There is no doubt that Mexico will eventually arrive at the same point as Europe and Asia.

Q: What role does the company’s Mexican engineering and finance centers play in its global agenda?
A: While Vitesco Technologies is a German-based company, Mexico is its third-largest country in terms of employees. We are proud of the role that the design engineering group in Guadalajara has in the company’s global agenda, as it is critical in providing the necessary designs for the migration to electromobility.
Our team in Guanajuato is responsible for providing financial services, not only to Mexico but also to the rest of North America. We take pride in our team’s performance and expertise, which is not only recognized by the company but also by the rest of the world. We believe that the competitive edge that our team in Mexico provides will play a crucial role in driving the company’s global agenda toward achieving sustainable mobility solutions.

Q: What are Vitesco Technologies’ objectives for 2023?
A: Our main goals for 2023 focus on increasing our market share, especially in the electrified powertrain solutions segment. As demand for EVs continues to grow, the company is working to expand its offering in this area and establish itself as a leading player.
We estimate that one-third of the sales in 2024/25 will come from our electrification business. And two thirds towards the end of the decade. This significant increase reflects the company’s efforts to focus on electromobility.
Our long-term plan, called “Direction 2030,” sets ambitious targets, including becoming carbon neutral across our entire operations. This means that we will need to invest in R&D, particularly to ensure that we are able to meet the needs of customers and stay ahead of the competition.

Vitesco Technologies is an international provider of intelligent and electrified powertrain systems oriented toward sustainable mobility. The company has about 38,000 employees across 50 locations and is an independent, stock-listed company that in 2022 generated sales of about €9.07 billion.