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News Article

Stellantis to Build Hybrid, Electric Vehicles in Mexico

By Rodrigo Andrade | Fri, 07/22/2022 - 16:58

The executive directors of the automaker Stellantis met with representatives from the Mexican government to discuss the company’s future investment plans in Mexico. The meeting focused on the hybrid and EV market, which requires collaboration between the private and public sector to take off in the country.

While no specific data was officially revealed, Rogelio Ramírez de la O, Minister of Finance and Public Credit said that this plan seeks to support the future mobility in the country and create jobs. More information will be announced in the coming months, he added.

The meeting was also attended by President Andrés Manuel López Obrador, Minister of Economy Tatiana Clouthier and Carlos Tavares, CEO, Stellantis. “We had a productive meeting with the automotive company, with which we discussed a path towards electromobility and the desire to strengthen [Stellantis] supply chain in the country,” said Clouthier.

The government offered a reachable and trustworthy guide for automotive companies to invest in the future of the hybrid and EV market in Mexico “We can offer reliable guidance to companies planning for the long term to ensure sufficient energy supply and a realistic and effective transition to clean energy as part of a comprehensive process,” said Ramírez de la O via his Twitter account.

During López Obrador’s visit to the US, his administration committed to use alternative energies in the automotive industry and for half of the total vehicles manufactured in Mexico to be electric or hybrid by the start of the next decade.

The automotive industry needs support from the public sector, especially considering the growth of the electrification trend. The public confirmation that the government is taking action seems to reassure the industry, as reported by some of its executives. “[This commitment] gives us confidence because it tells us that the government is concerned about the continuous production of cars with clean energies, which will be required from now on,” said José Zozaya, President, Mexican Association of the Automotive Industry (AMIA).

The Mexican automotive industry increasingly embraces the electric and hybrid vehicle market. Consultancy firm Frost & Sullivan forecasts that the sales of these vehicles will reach 200,000 units by 2030. Other companies are also exploring bringing the production of these vehicles and its parts to the country. For example, China’s Contemporary Amperex Technology (CATL) is analyzing Mexico as a future location for EV batteries manufacturing plants, which would represent a US$5 billion investment.

Rodrigo Andrade Rodrigo Andrade Junior Journalist & Industry Analyst