MARCH - MAY 2024ELECTRICAL BUSINESS REVIEW8IN MY OPINIONELECTRIC MOBILITY ­ AN IMPORTANT PART TOWARDS SUSTAINABLE MOBILITYI.- Overview of Mexico's e-mobility market:The global automotive industry is experiencing the biggest technological change in its history. Mexico is the largest manufacturer of motor vehicles in Latin America and the 2nd largest in North America. Mexico is also the 4th largest producer of auto parts in the world and is highly involved in the technology transformation of this industry. To take advantage of the installed manufacturing capabilities Mexico has in this sector, as well as its affiliation with the USMCA free trade agreement, ZF is experiencing manufacturing growth in new areas of investments, including systems and technologies for the electromobility market in North America.II.-The Pros of E-mobilityEnormous technological advancements are taking place in the electric vehicle industry, and there is a clear trend to reduce battery costs in the mid-term. The main advantages of the electromobility follow:· The technologies are environmentally friendly; efforts are being made throughout the industry to reduce CO2 emissions, and electric mobility eliminates tailpipe emissions.· Eligible for Tax Cuts· Easy to care for (lower maintenance costs)· Electricity cost is much lower than traditional Internal Combustion Engine fuel cost.By 2035, Zero Emissions Vehicles sales will be mandatory in the U.S. and Canada, and by 2040 in Mexico. This means the availability of vehicles with combustion engines will be reduced year-by-year and at an accelerated rate by 2030.III.- Adapting to Electromobility ­ Obstacles Mexico FacesThe local auto-part industry is moving very quickly into electromobility to support North American OEMs' transition to manufacture electric vehicles.In Mexico and specifically in the consumer market, New technologies always present a market challenge because their adoption can be slower. Nevertheless, electromobility has created an opportunity to cooperate to build a green environment.The main challenges that Mexican consumers face as they consider adopting this new electromobility technology are twofold:· Insufficient cargo infrastructure: To begin the transition from fuel stations to charging stations, especially on highways and roads, limits today's electric vehicles primarily for "city use." Mexico requires a government incentive policy (not necessarily a monetary incentive) for charging stations to start the transition to electric., This must be supported by the State-owned electric company CFE because, by law, this company is the only one that can distribute energy. This also applies to Hydrogen production, which would be used in Commercial and heavy vehicles that use fuel-cell batteries.· Purchase Cost: As is often the case with newer technologies, the cost of Electric Vehicles is higher than Internal Combustion Engine Vehicles. However, this is expected to change in the near future.· Consumer education: An educational campaign to raise awareness among consumers about the benefits of electric vehicles can help increase their adoption rate.Foster Talent for Mexico's evolving manufacturing sector.The transformation of the automotive industry is not limited to electric motors and batteries. There is also a significant change now underway to integrate By Alberto De Icaza, Head External Affairs Mexico, ZF Group
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