Tesla, Electrification, Mexico’s Future: The Week in Automotive

Automaker Tesla reached the US$1.01 trillion value mark, following Hertz’s order for 100,000 cars, which marked the largest single purchase of EVs in history. Meanwhile, Queretaro has 34 potential projects incoming, which would imply investments of up to MX$80 billion (US$4 billion) and the creation of 15,000 new jobs.

Ready? This is The Week in Automotive!

Electric Public Transportation May Be Decades Away

While electric automobility is transforming Mexican transportation, lack of communication with local authorities is delaying it implementation, warned the president of Mexican Association of Transport and Mobility (AMTM). At this rate, it will take 15 to 20 years for even half of the country’s public transportation to be electric.

BMW to Phase Out Internal Combustion Engine Vehicles from Main Plant

As it begins producing the electric i4 model, BMW said it will stop manufacturing ICE vehicles at its main plant in Munich in three to four years.

“For the plant and team, the launch of the BMW i4 is a milestone on the road to electric mobility. By 2023, more than half of all vehicles from our Munich facility will have an electrified drive. The majority will be fully electric, so Munich goes fully electric,” said Milan Nedeljković, BMW AG Board Member for Production.

Hertz to Buy 100,000 Tesla Cars in Record-Breaking EV Purchase

Hertz placed an order for 100,000 Tesla Model 3 sedans, informed the car-rental company through a press release. The transaction is set to become the largest single purchase of EVs in history. After the order confirmation, Tesla’s stock reached a record high close of US$1,024.86 and the company reached the US$1.01 trillion value mark, becoming the second fastest to do so in history.

Growing Mexico’s Insurance Culture

“When clients are buying a vehicle and suddenly the dealership starts talking about extra costs, it is understandable that they do not want to spend more money. However, that little extra could end up being a major benefit if the vehicle presents a transmission failure four years later,” said Felipe Sánchez, President, Assurant Mexico to MBN. Read the full interview here.

Kavak Doubles Its Value Thanks to Funds

The first Mexican unicorn Kavak, which leads the used cars market, has become the second most valuable startup in Latin America after doubling its value to US$8.7 million. Kavak’s Executive Director Carlos García said that the company netted US$700 million during its Series E round.

General Motors México Refurbishes Vehicle Portfolio

Despite being one of the automakers most affected by supply chain disruptions, General Motors México will refurbish its vehicle portfolio with the new Groove 2022 to target the small SUV segment, where it had no presence.

Chocolate Car Decree: Who Will Benefit?

President López Obrador’s decision to legalize vehicles unlawfully imported into Northern Mexican states has received ample criticism. While associations warn that the measure will impact Mexico’s automotive industry, other parties stand to benefit from the decision.

Aguascalientes is Mexico’s Key Player at IAA Mobility Summit

Aguascalientes is considered essential in Mexico’s transition toward sustainable and smart mobility. Its growth and position in the Bajio have allowed the state to represent the country at the 2021 IAA MOBILITY summit, where a new worldwide mobility beginning was set in motion.

Queretaro to Hold MX$80 billion Investment Portfolio

Queretaro has 34 potential projects incoming, which would imply investments of up to MX$80 billion (US$4 billion) and the creation of 15,000 new jobs, said the state’s Ministry of Sustainable Development.