Mexico will quickly construct giant numbers of EVs, however most will go north to the U.S. fairly than being bought domestically.
The cause behind it is not a tradition conflict or an absence of concern for the setting. It’s a matter of economics and practicality. EVs stay too costly for many Mexicans, and lack of charging infrastructure makes them much less sensible than in different nations, defined a current Reuters report (by way of Automotive News).
Of the almost 1.1 million new automobiles bought in Mexico final yr, simply 5,600 have been EVs, representing 0.5 % of home auto gross sales for the yr, in line with the report. Yet manufacturing output of EVs has surged to 142,000 autos this yr, in comparison with 78,000 in 2022, the report stated. That’s based mostly on an estimate from Mexican auto elements business group INA printed earlier than Tesla introduced its Mexican manufacturing facility.
BMW Group Plant San Luis Potosà in Mexico
Part of the problem is price. A Mexican employee makes $366 a month on common, whereas the statutory minimal wage is round $11 per day, in line with the report, which cites official information. At present costs, EVs are usually out of attain of most Mexicans. And the nation hasn’t carried out any monetary incentives for EVs.
Charging infrastructure can also be threadbare. The report cites information from Mexico’s Auto Industry Association (AMIA) exhibiting simply 1,100 charging websites nationwide. Most of these are within the capital and different main cities, the report famous. Charging community Evergo plans so as to add 4,000 chargers over the following 4 years.
Mexico’s EV manufacturing surge is usually aimed on the U.S. President Biden stated early in his time period that the administration would emphasize union-made, U.S.-built EVs, however it quickly grew to become clear that Mexico was a giant a part of the plan. Full EV tax credit score guidelines that embrace uncooked supplies sourcing particulars are due quickly, however they’re additionally anticipated to deal with supplies from Mexico the identical as these from Montana, as an illustration.
150,000th Ford Mustang Mach-E constructed
It’s seemingly no coincidence, then, that a number of automakers have introduced EV manufacturing plans for Mexico just lately. Tesla confirmed its plant for Mexico final month, and BMW has introduced that its Neue Klasse EVs due across the center of the last decade can be made in Mexico.
General Motors in 2021 introduced a $1 billion funding in its Ramos Arizpe, Mexico, plant, the place the Blazer EV and Equinox EV are as a result of be made. That upset the United Auto Workers, who in a press release on the time of the announcement referred to as the choice “a slap in the face” for union members and taxpayers.
Meanwhile the Ford Mustang Mach-E is already made in Mexico, and Ford has aimed to spice up manufacturing to 200,000 items a yr, sure for North America and Europe, by the top of this yr.
Source: www.greencarreports.com