The city of Monterrey, Mexico, marked the starting point of Latam Mobility’s 2024 Tour in the main cities of the continent, with the “North America Mobility & Net Zero Summit,” which brought together the most important companies and leaders linked to energy, transportation, fuels and mobility, to show the progress and prospects of the industry in Mexico, the U.S. and the region.
EvolvX, Invest in Latam’s consulting arm specialized in analysis and data on energy transition and sustainability, exclusively presented the report “State of Sustainable Mobility in Mexico“, which was supported by the Mexican Association for the Promotion of Electric Vehicles (AMIVE) and Latam Mobility.
Andrés García, Mobility Director of the initiative, began the presentation by indicating that currently in Mexico, 55% of the total electricity generation matrix in Mexico is used by the transportation sector, with a high density of consumption based on fossil fuels, while renewable energy represents only 0.22%.
“Compared to other Latin American countries, Mexico lags behind. Electricity consumption in the transportation sector in Colombia is 1%, while in Chile, it is over 1.2%,” said Garcia.
“In terms of other alternatives, such as biofuels or electromobility, it is not correct to talk about competition, when there is 99% of the market to decarbonize. It is key to generate innovation and development ecosystems to turn the current matrix around,” emphasized the EvolvX representative.
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Nearshoring as a Catalyst
EvolvX‘s report, which is a prelude to the second version of the Mexico Sustainable Mobility Report, showed a significant increase in electric vehicle sales in 2023 compared to the same period last year in almost all Latin American countries. With more initial movement in hybrids, but electrics are starting to take some share of the light market.
In relation to Mexico, Garcia indicated that in northern Mexico a whole value chain driven by nearshoring is starting to develop. “In the cities of Monterrey and Nuevo Leon, in the north of the country, there are new business opportunities linked to sustainability, electric mobility, and renewable energies, with multilateral entities prepared to provide financing.”
“We have more than 350 important investment announcements, and an expectation of more than 110 billion dollars coming from several countries, such as the United States, China and Denmark. Almost 50% is directed to the manufacturing sector, but 21.3% is focused on energy, including renewables, while 15.7% will be for transportation”, emphasized the EvolvX representative.
“The present and future of Mexico is going to be industrialization, which is becoming stronger and more developed, but according to the report, we observe key niches, such as transportation and financial services that show significant growth, as well as the need to advance in other technical aspects, such as charge storage, and the circular economy for batteries,” expressed Garcia.
On the other hand, Garcia was emphatic about the imperative need for progress in the legal aspect. “Each country must prepare its legislation and public policies to continue the development of renewable energies and plan innovation and investment ecosystems. In addition, it is necessary to link companies, the State and the Academy to follow the path towards decarbonization.”
Finally, he indicated that from EvolvX they are carrying out consulting tasks to different Latin American companies, in order to ensure investments based on advice and data, and better decision making, as well as showing the opportunities and benefits of sustainable mobility.
📌 For more information on EvolvX advice or consulting, please write to ronaldo.sandoval@evolv-x.com
The “North America Mobility & Net Zero Summit” follows:
