Electric Vehicle Market Shows Strong Growth in Mexico
Mexico’s electric vehicle (EV) market is experiencing steady growth, with electric and plug-in hybrid vehicle sales surging by 83.8% in 2024 compared to the previous year, reaching 69,713 units.
This boom is driven by decreasing costs, increasing environmental awareness, government incentives, and global automotive trends. While still in its early stages compared to markets like the U.S. or Europe, the country is seeing a rise in EV adoption, particularly in urban centers where charging infrastructure is expanding. The market includes not only electric cars but also electric bicycles and other micro-mobility options, catering to a diverse range of consumers.
The infrastructure supporting electric vehicles is growing alongside sales, with 45,055 charging connectors available nationwide by the end of 2024. However, only 8% of these are public chargers, with the vast majority being private charging points.
Electric Cars: Major Players and Emerging Competitors
Global automakers dominate Mexico’s electric car market, with brands like Tesla, Nissan, and BMW leading sales. Tesla, despite its premium pricing, has gained traction among affluent buyers in Mexico City, Monterrey, and Guadalajara, supported by a growing Supercharger network. Nissan, with its Leaf model, remains a popular choice due to its affordability and established dealership presence. Meanwhile, BMW’s i-series and Volkswagen’s ID.4 are also gaining ground as mid-to-high-end options.
Chinese automakers are making inroads as well, with brands like BYD and JAC offering more budget-friendly EVs. BYD, in particular, has expanded aggressively, introducing models like the Dolphin Mini and the Han, targeting both private buyers and corporate fleets. The most inexpensive BYD model the Dolphin Mini can be purchased for 350,000 Mexican pesos, or roughly 19,000 USD.
One of the most anticipated developments is the arrival of the Olena, an EV backed by the Mexican government and produced by a consortium of local and international manufacturers. Promoted as an affordable, domestically made electric car, the Olena aims to boost Mexico’s EV production capabilities. The estimated cost for the base model Olena is rumored to be as low as 90,000 pesos (roughly 5,000 USD), but numbers as high as 150,000 have also been reported. Delays in its release have raised questions about its viability and whether it can compete with established global brands.
For a long time, Tesla has been at the forefront of Mexico’s EV market, ties between the company CEO and majority stakeholder, Elon Musk, and the Trump administration, combined with the ongoing trade war with the United States have created a large opening in the market for serious competitors.
Charging Infrastructure and Government Policies
The expansion of charging stations remains a critical challenge. While major cities have seen progress, rural areas still lack sufficient infrastructure. The Mexican government has introduced tax incentives for EV buyers and is working on policies to encourage domestic EV production. However, compared to other countries, Mexico’s incentives are still modest, and more aggressive policies may be needed to accelerate adoption.
The one major exception to this rule is Mexico City, which has rolled out a series of incentives to encourage drivers to switch to electric vehicles. One of the most significant benefits is the exemption from Tenencia, the annual car tax, as well as the one-time ISAN new vehicle tax, which can save buyers thousands of pesos. These perks apply to fully electric and plug-in hybrid vehicles, making eco-friendly cars even more affordable. Additionally, EV owners enjoy a permanent exemption from Hoy No Circula restrictions, allowing them to drive every day — even during pollution alerts — while traditional combustion-engine vehicles face rotating bans.
Beyond tax breaks, the city offers practical advantages like free parking in metered zones for EVs with green license plates, along with discounted or free charging at select public stations. Homeowners can also take advantage of special electricity rates for overnight charging, further reducing the cost of ownership. Financing options, including low-interest “green loans” from government-backed programs, make the transition easier for budget-conscious buyers.
Electric Bicycles and Micro-Mobility
Beyond cars, electric bicycles are becoming a popular alternative, especially in congested cities. Companies like Volta Bikes and Moi Moto offer affordable e-bikes for daily commuting, while international brands like Specialized and Trek cater to enthusiasts. Mexico currently has 2.5 million electric bicycles in circulation and is projected to reach 3.5 million by 2027. Bike-sharing programs with electric options, such as Ecobici in Mexico City, are also contributing to this trend.
Three-wheeled electric vehicles, such as tuk-tuks adapted for urban transport, are emerging as last-mile solutions for deliveries and short-distance travel. These options are particularly appealing for small businesses looking to reduce fuel costs.
Major challenges for electric vehicles
Limited charging infrastructure and consumer skepticism remain obstacles. However, as battery prices drop and more models enter the market, adoption is expected to rise. The success of projects like the Olena could determine whether Mexico develops a strong domestic EV industry or remains reliant on foreign automakers.
In the coming years, Mexico’s EV market will likely see increased competition, more affordable models, and gradual infrastructure improvements. Whether through cars, bikes, or innovative micro-mobility solutions, electrification is slowly but surely reshaping transportation in the country.
Senior Editor Carlos Rosado van der Gracht is a Mexican expedition/Canadian photographer, adventure leader, and PhD candidate. Born in Mérida, Carlos holds multimedia, philosophy, and translation degrees from universities in Mexico, Canada and Norway.
