Mexico’s Electric Vehicle Market Takes Off

Electric vehicles (EVs) are becoming increasingly popular in Mexico, reflecting the growing adoption of sustainability practices across the country. 

Data from INEGI shows that the adoption of EVs is rapidly advancing. In 2019, sales of EVs in Mexico City stood at between five and 20 units per month. Two years later, sales rose sharply, hitting between nine and 106 units per month. In 2022, EV adoption continued to surge, with counts ranging from 56 to 401 units per month. The early months of 2023 also witnessed remarkable growth, with counts reaching as high as 563 units in April. 

Guillermo Rosales, Executive President, AMDA, tells Excelsior TV that the EV market evolution in Mexico has shown an astonishing 30-fold increase over the past five years.

While the growth is significant, EVs still represent a relatively small fraction of the total vehicle fleet in Mexico. In 2022, EVs accounted for less than 1.5% of total light vehicles sold in the country.

One significant hurdle is price. The average cost of an EV ranges around MX$400,000 (US$23,800), making potential buyers associate these vehicles with high-end products. Thus, Mexico’s EV market needs more accessible options. As Fernando Enciso, Director Mexico, Grupo Surman tells MBN, deciding which vehicle to buy in Mexico has become an art.

Competition has also played a pivotal role in the growth of the EV market. Over the past two years, the entry of Chinese manufacturers into the Mexican market has introduced a new dynamic, fostering competition that drives innovation and affordability.

A major difference exists when comparing Mexico's EV transition to that of China and the EU: the lack of comprehensive public policies. US President Joe Biden also introduced a subsidy for EV purchases, which aims to catalyze market growth. Unlike these regions, Mexico lacks subsidies and technological support to facilitate this transition.

Rosales explains that the automotive industry is evolving rapidly due to fierce competition. The EV market in Mexico holds immense potential, as indicated by its recent growth. However, challenges surrounding pricing, policy support and accessibility must be addressed to create a more robust and sustainable transition to EVs.