Mexico Electric Vehicle Market – Industry Analysis, Emerging Opportunities and Forecast (2023-2029)

Mexico Electric Vehicle Market is expected to reach US $ 233.37 million by 2029, thanks to growth in the battery electric vehicle (BEV) segment. The report analyzes Mexico's Electric Vehicle market dynamics by region, type, and vehicle type.
Mexico Electric Vehicle Market Overview:
The Mexico Electric Vehicle Market was valued at US $ 104.71 Mn. in 2022, and it is expected to reach US $ 233.37 Mn. by 2029 with a CAGR of 12.13% during the forecast period.

With 21 million people living and 33.4 million automobiles, Mexico City is the world's fifth-most populous city. The Mexican government has been driven to explore alternate technology to improve mobility in the city because of traffic and pollution levels. Sales of electric and hybrid vehicles, which are generally zero-emission vehicles, have surged among Mexican consumers.

The Mexican government is concerned about the sizable increase in travel times for individuals and greater levels of air pollution with 100-161 (MP2.5) generated by the everyday transit of millions of cars between Mexico City and the metropolitan area.To know about the Research Methodology:- Request Free Sample Report
Mexico Electric Vehicle Market Dynamics:
New automobiles that run on fossil fuels such as gasoline, diesel, or liquefied petroleum gas are prohibited in many nations. Germany, India, Ireland, Israel, and the Netherlands have declared plans to phase out fossil fuel automobiles in 2030; the United Kingdom, France, Taiwan, and California may phase them out in 2040; and Norway is likely to phase them out in 2025. Diesel vehicles are expected to be banned in Paris, Rome, Madrid, Athens, and Mexico City by 2025.

Mexico's climate legislation calls for a 50% reduction in emissions by 2050 (compared to 2000 levels) and a 35% increase in renewable energy by 2024. Between 2014 and 2022, Mexico City's overall target is to reduce emissions by up to 30% (8 to 10 million tonnes of CO2) compared to business as usual. In the Metropolitan Area of Mexico City, 29% of all daily travel (approximately 6.3 million) is by private vehicle, with almost 60.60% by low-capacity public transportation concessions like minibusses, vans, suburban buses, and taxis; only 8% is by mass public transportation systems like the Metro, Metrobus, light train, and trolley bus, and 2.40% by bicycle and motorcycle. Mexico City has two BRT prepaid card systems: Metrobus and Mexibus.

Mexico provides many incentives, promotion methods, and user benefits for electric vehicles thanks to the active participation of governments and businesses in promoting new environmental technology. These improvements open up new possibilities for Mexico's electric vehicle (EV) industry. Lower electricity costs are expected as a result of Mexico's recent energy reform, which opened up the industry to more private participation and created new business prospects.

The country's electrical reform and climate-change momentum provide an opportunity to lay the groundwork for the long-term adoption of electric vehicles. Electric vehicles, in the end, are part of a bigger ecosystem of sustainable transportation and greener energy generation, as mandated by Mexico's climate change law. Mexico plans to use clean energy sources to generate 35% of the country's electricity by 2014, 40% by 2035, and 50% by 2050. As a result, Mexico's electric vehicle sector has a bright future. There are various incentives, promotion methods, and favorable electric rates for the use of electric vehicles in Mexico, thanks to the active participation of governments and businesses in promoting new technologies for the environment.

The government of Mexico City has developed a strategy to increase mobility by replacing local transportation with zero-emission automobiles. By 2024, they want to expand clean energy generation from 25% to 35% of total electricity generation. Mexican consumers benefit from government incentives such as municipal tax exemptions and pollution control inspections. Also, rising gasoline prices and pollution alerts that prohibit automobiles from using public transportation have driven sales of electric and hybrid vehicles in Mexico. The market for electric and hybrid vehicles has grown as a result of these considerations.

From January through September of last year, a total of 955,393 electric and hybrid vehicles were sold. Charging infrastructure is critical to the use of electric vehicles, and in Mexico, infrastructure for these vehicles is still being developed. The energy regulator, CFE, invested the US $3 Million in 2022 to establish 100 charging stations, but no additional funding has been announced in the foreseeable future.
Business Opportunities For Key Players
The broad implementation of electric vehicles (EVs) in Mexico's corporate and government fleets is within reach of the current generation of the Mexican government and corporate executives. It may take collaboration between the government, researchers, manufacturers, and fleet operators to align the appropriate incentives so that buying an electric vehicle is not only the right thing to do but also the right financial option.

BMW and Nissan are the two major automakers attempting to promote electric vehicles in Mexico. They collaborate and compete with their ideas as rivals in this new market. BMW appears to be significantly more enthusiastic than Nissan about open standards like the Open Charge Point Protocol (OCPP). BMW has made charging station investments; however, they would prefer to see a Charge Point Operator or Service Provider enter the EV market.
Mexico Electric Vehicle Market Segment Analysis:
Based on the Type, the Mexico electric vehicle market is segmented as, battery electric vehicles (BEV), plug-in hybrid electric vehicles (PHEV), and hybrid electric vehicles (HEV). In 2022, the battery electric vehicle segment was dominant and held xx% of the overall market share in terms of revenue. A battery electric vehicle (BEV), also known as a pure electric vehicle, only-electric vehicle, fully electric vehicle, or all-electric vehicle, is an electric vehicle that relies solely on chemical energy stored in rechargeable battery packs for propulsion (e.g., hydrogen fuel cell, internal combustion engine, etc.).

Internal combustion engines (ICEs) are replaced with electric motors and motor controllers in BEVs. They have no internal combustion engine, fuel cell, or gasoline tank because they get all of their power from battery packs. Motorcycles, bicycles, scooters, skateboards, railcars, boats, forklifts, buses, lorries, and cars are all examples of BEVs.

Based on Vehicle Type, the Mexico electric vehicle market is segmented as, two-wheeler, passenger car, and commercial vehicle. In 2022, the passenger vehicle segment was dominant and held xx% of the overall market share in terms of revenue thanks to the rising adoption of electric vehicles, particularly in the passenger car segment.

Detailed information about all segments is covered in the MMR’s report.

The objective of the report is to present a comprehensive analysis of the market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market have been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The report also helps in understanding the global market dynamics, structure by analyzing the market segments and projecting the global market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global market makes the report investor's guide.
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Mexico Electric Vehicle Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2023-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 104.71 Mn.


Forecast Period 2023 to 2029 CAGR:
12.13%
Market Size in 2029:
US $ 233.37 Mn.


 Segments Covered:
by Type
• Battery Electric Vehicle (BEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Hybrid Electric Vehicle (HEV)


by Vehicle Type
• Two Wheelers
• Passenger Cars
• Commercial Vehicles



Mexico Electric Vehicle Market Key Players
• ABB Ltd.
• Emerson Electric Co.
• General Electric Co.
• Honeywell International Inc.
• Schneider Electric SE
• Rockwell Automation Inc.
• Yokogawa Electric Corp.
• Omron Corporation
• Keyence Corporation
• Mitsubishi Electric Corporation
• Pilz GmbH & Co. KG.
• Sick AG
• Balluff GmbH
• Banner Engineering Corp.
• Siemens AG
• Others
Frequently Asked Questions:
1. What is the forecast period considered for the Mexico Electric Vehicle market report?
Ans. The forecast period for the global Mexico electric vehicle market is 2023-2029.

2. Which key factors are expected to hinder the growth of the Mexico Electric Vehicle market?
Ans. The high requirement of capital for automation and setting up the infrastructure of Mexico electric vehicles is the key factor expected to hinder the market growth during the forecast period.

3. What is the compound annual growth rate (CAGR) of the Mexico Electric Vehicle market for the next 7 years?
Ans. The Mexico electric vehicle market is expected to grow at a CAGR of 12.13% during the forecast period (2023-2029).

4. What are the key factors driving the growth of the Mexico Electric Vehicle market?
Ans. The need for technological advancements, the urge to control rising pollution levels, and depleting fossil fuels are the key factor expected to drive the growth of the market during the forecast period.

5. Which are the worldwide major key players covered in the Mexico Electric Vehicle market report?
Ans. ABB Ltd., Emerson Electric Co., General Electric Co., Honeywell International Inc., Schneider Electric SE, Rockwell Automation Inc., Yokogawa Electric Corp., Omron Corporation, Keyence Corporation, Mitsubishi Electric Corporation, Pilz GmbH & Co. KG., Sick AG, Balluff GmbH, Banner Engineering Corp., Siemens AG, and Others.