An interesting development is underway in developing countries, and it’s most visible right now in Latin America.
For years, Mexico was a laggard in the EV transition, but things started to change in late 2021. Three years of impressive growth later, Mexico is turning into one of the most interesting countries in the region, attracting significant Chinese investment to build EVs locally and rapidly ramping up sales as prices fall and more competitive options arrive.1,469,040 light and heavy vehicles were sold in Mexico in 2023. Of these, 19,487 were EVs , for only 1.3% EV market share.
This is likely to be related with a development in Latin American markets that contradicts what’s happening in the US and to a lesser degree Europe: here it’s BEVs that are cheaper, not PHEVs. PHEVs tend to be large SUVs or, at best, large sedans, well into the $30,000–$40,000 range for the most affordable options, while BEVs can be found in compact and sub-compact versions available for $20,000 or so, sometimes even a little bit less.
A Ford vehicle, the E-Transit, gets the bronze — in a surprising appearance — followed by the Volvo XC40 and the Tesla Model 3.Mexico is definitely going to be one of the most interesting markets in the region this 2024. Chinese EV makers are arriving in force, but — aside from JAC — local production isn’t likely to ramp up until 2025.that helps to accelerate the cleantech revolution!