Mexico Embracing E-mobility, but Headwinds Persist

MEXICO CITY, Mexico—Like many countries, Mexico is increasingly embracing the electromobility wave, and in parallel, also confronting headwinds associated with expanding e-mobility, experts argued during a recent webinar.

“Mobility is not some fashion trend, it’s a tendency that’s here to stay,” said Daniel López, Evergo Emobility chief commercial officer, on June 9 during the ‘Electromobility: Will Mexico be Ready?’ webinar organized by the Center for U.S.-Mexican Studies at the UC San Diego School of Global Policy and Strategy and the Mexican Council on Foreign Relations.

López said this was evident since all the major automakers in the world have announced plans to eventually phase out fossil fuel power vehicles for electric vehicles (EVs).

Mexico is home to 129 million citizens, ranking the country as the world’s tenth largest in terms of population, according to Worldometer. Automakers in Mexico offer consumers over 200 EVs models that are 100% electric, López said.

While prices for EVs still aren’t accessible to all citizens, they are available across major categories: passenger, commercial transport, public transport, merchandise transport and heavy transport—including the cement and mining sectors, López said.

López said the infrastructure around charging stations needed to undergo significant growth as consumers continue to argue about a lack of information about non-working and working charging stations, charging rates, and operational hours.

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Sales of EVs in Mexico are expected to surpass 200,000 units in 2023 compared to around 158,000 units sold between 2020-2022, said Guillermo García Alcocer, the planning and performance evaluation vice president at Mexican university Instituto Tecnológico Autónomo de México and former president of the Mexican Energy Commission.

As a result, sales are expected to grow at least 25% in 2023 compared to around 160% in 2022 and just under 80% in 2021, Alcocer said.

E-mobility, which encompasses EVs and their supporting infrastructure, is rapidly transforming the automotive industry. Plans worldwide to transition to cleaner EVs will create new opportunities for sustainable transportation and economic growth, the experts concurred.

E-mobility against fossil pollution

Mexico faces air pollution issues in many of its major cities. In particular, the country’s capital and economic and financial heart—Mexico City—boasts 22 million habitants, according to data from the United Nations. The city, situated in the valley of Mexico on land that was once a lake, is known for its contamination and poor air quality.

While the air quality in Mexico City has improved in recent years, the city is still considered moderately polluted—with levels greater than the maximum limit established for one year by the World Health Organization (WHO), according to details on Mexico’s government website.

E-mobility can combat bad air quality caused by carbon emissions generated by the transport sector in cities in Latin America with more than 5 million habitants, electromobility and energy expert Yolanda Villegas said.

Villegas said over 13 cities in Latin America had very bad contamination problems, affecting over 150 million people living in cities surpassing WHO air quality limits.

“Over 95% of the energy needs of the transport sector are derived from petroleum derivatives…which opens [opportunities] for the e-mobility sector,” Villegas said.

For Villegas, the e-mobility push continues to face headwinds related to the price of batteries, a lack of charging infrastructure and the subsequent financing.

While electrification is generally associated with reducing carbon emissions and pollution levels, Odón de Buen, a former general director for the National Commission for the Efficient Use of Energy, didn’t agree.

“Electrification doesn’t [necessarily] mean a lower carbon footprint…this will only come as the electric network gets more efficient and reduces the burning of fossil fuels [and] renewable generation increases,” Odón de Buen said.