Mexico’s Role in the Global Shift Toward Electric Mobility

We recently had the privilege of participating in a major electromobility event in Gothenburg, Sweden, hosted by Business Sweden, a government-backed organization operating within the Swedish Embassy in Mexico. This conference featured a high‐level series of presentations by executives from global industry leaders such as Volvo Trucks, Volvo Cars, and Scania, along with other key European experts in the electric mobility sector.

Electric vehicle (EV) adoption in Europe is rapidly accelerating. Today, approximately 1 in 4 new cars sold in Europe is electric. In countries like Norway, the transition is nearly complete: gasoline-powered vehicles are virtually phased out. Other nations, including other Nordic states and Germany, are also aggressively shifting toward electric alternatives. The majority of these EVs are produced by established European automakers, yet, the landscape is becoming increasingly diversified by Chinese manufacturers. Despite facing trade tariffs, these companies are steadily gaining market share, while Tesla, with its early and sustained focus on the European market, remains a prominent player.

China’s EV revolution tells a different story, rooted in government-led investment. Propelled by long-term national strategy, China has emerged not just as the world’s largest market, but also as the top global exporter of electric vehicles. Across every region, from first‑tier megacities like Shanghai and Beijing to second‑ and third‑tier cities, EV adoption is booming. A spectrum of models, spanning from budget-friendly to premium, ensures accessibility and drives consumer adoption en masse.

Turning to North America, the narrative shifts once again. The pace of EV adoption in the United States has stagnated. Incentives introduced during the Biden presidency have been rescinded or scaled back, reducing consumer demand. The operating context in the United States differs greatly from Europe’s: drivers routinely cover long distances, and many EV models lack sufficient range for inter‐city travel. Critically, the infrastructure for rapid recharging remains underdeveloped, limiting consumer confidence and making EVs less viable for long-distance use. Consequently, EV sales have plateaued, leading to economic pressures that challenge the viability of certain EV models and slow down supply chain consolidation.

In Mexico, however, the scenario looks more dynamic. The domestic market has opened to Chinese-made vehicles — both electric and internal combustion — by applying a relatively modest tariff on imports. This policy shift has enabled Mexican consumers to choose from competitively priced electric vehicles that rival internal combustion alternatives. As a direct result, the uptake of EVs in Mexico has soared over the past 18 months.

To quantify this growth: During 2024, nearly 32,000 electric vehicles (EVs) were sold in Mexico, alongside an additional 38,000 plug-in hybrids, bringing the total to 70,000 electrified vehicles. In the first quarter of 2025, sales reached 20,000. If current trends continue, Mexico could finish the year with 80,000 electrified vehicles on the roads — a meaningful slice of the market, representing 5–7% of total vehicle sales. With sustained momentum, especially driven by affordable Chinese imports, this figure might climb to 100,000 units, potentially lifting EV penetration to around 7–9%.

At EVS38 in Gothenburg, the chief technology officer of Volvo Trucks presented an insightful “five‐factor formula” aimed at accelerating EV adoption. These pillars include:

1. Product and service availability – ensuring consumers can access and field necessary offerings;

2. Affordable total cost of ownership – making EVs economically viable over time;

3. Robust charging infrastructure – critical for consumer confidence and widespread use;

4. Access to clean energy sources – reducing life-cycle emissions and reinforcing sustainability;

5. Resilient supply chains – to secure component sourcing, logistics, and manufacturing stability.

Together, these elements form the foundation for accelerated and enduring EV uptake, while also building trust among consumers and industry partners.

The North American challenge remains when applied to these five benchmarks. The United States continues lagging behind Europe and Asia according to several indicators: range anxiety, inconsistent public policy, and a lack of cohesive infrastructure strategy. If these barriers persist, North America risks falling further behind in the global EV transition.

What, then, should Mexico’s strategy be in this rapidly evolving landscape? The first plank is market accessibility; that is, maintaining favorable import conditions for competitively priced EVs, especially from China. The second plank involves domestic industrial policy: Mexico must actively attract EV manufacturing facilities. Establishing production lines on Mexican soil ensures not only product availability but also value‑chain integration, job creation, and transfer of technical capabilities.

Mexico’s long-term competitiveness hinges on its ability to serve as both a buyer and a builder of electric vehicles. This dual approach — access plus domestic production — will help Mexican automakers remain relevant and resilient in a fast‐changing automotive world.

Beyond commercial incentives, public policy must evolve. Mexico needs decisive measures to incentivize leading EV manufacturers to operate in the country. These measures might include tax credits, infrastructure support, expedited permitting, workforce training programs, and collaboration between federal, state, and industry bodies.

Mexico now stands at a strategic crossroads. The global EV transformation is no longer a distant trend, it is unfolding now, with irreversible momentum. As Europe and Asia advance on multiple fronts, Mexico can't afford to stand on the sidelines. Failure to act could leave its automotive ecosystem behind in terms of innovation, competitiveness, and environmental responsibility.

Now is the time to act. By proactively facilitating access, enabling domestic production, and supporting ecosystem readiness, Mexico can secure its place in the global EV revolution. With thoughtful policy, strategic investment, and collaborative action among industry, government, and academia, Mexico can not only catch up but emerge as a key player in the electric automotive future.

The road ahead is not without its obstacles, but the opportunity is clear. Mexico has the people, infrastructure, and strategic geography to become the ideal manufacturing and export hub for electric vehicles in the Americas. It’s time to ensure that the electric mobility revolution is one that includes Mexico at its heart.