In the first half of 2024, our country exported vehicles worth US$3.127 billion to its northern neighbor, second only to Germany, whose sales amounted to US$3.213 billion, according to figures from the US Department of Commerce.
Mexico is set to lead electric car exports to the United States in 2024, if it maintains the trend shown through the first half of this year and according to statistics from the U.S. Department of Commerce.
From January to June of this year, Mexico exported these vehicles worth US$ 3.127 billion to its northern neighbor, a year-on-year increase of 171.9%.
It was only surpassed by Germany, whose sales grew 7.8% to US$3.213 billion.
By 2023, Mexico has displaced South Korea from second place in this ranking and left behind other competitors such as Japan, Belgium and the United Kingdom.
Americans have been steadily increasing their purchases of electric cars, driven by greater environmental awareness, government incentives and because both batteries and charging infrastructure are improving.
From around the world, imports of electric cars to the US market increased by 36.1% in the first half of 2024, reaching US$ 11.952 billion.
Not only does Mexico share a border with the United States, but it is also deeply integrated into North American supply chains regulated by the United States-Mexico-Canada Agreement (USMCA).
Automakers expand in Mexico
In this context, several car manufacturers are taking advantage of this relationship to expand their operations in Mexico. For example, BMW and Audi produce electric vehicles in the country, taking advantage of the benefits offered by the T-MEC.
Thanks to new investments, Mexican exports of electric cars to the United States jumped from 2020 to 2021, going from US$25 million to US$1.732 billion.
An additional aspect is that it has been reported that the Chinese company BYD is looking for strategic locations in Mexico to establish new production facilities.
Last Wednesday, BYD's general manager in Mexico, Jorge Vallejo, told Reuters that the incentives offered by three Mexican states where the new plant could be established include tax advantages, land, management and preferential prices. However, Vallejo declined to reveal the finalist entities.
In April, Mexico's federal government suspended incentives for Chinese electric vehicle manufacturers in connection with the same project due to pressure from the United States.
Despite this change in policy, BYD has announced that its plant in Mexico will not be used to supply the US market.
China dominates global production of electric vehicles and faces tariff restrictions to enter the US market.
According to the Atlantic Council, unless there is a policy response, it is likely only a matter of time before Chinese EVs are well positioned to enter the US market, either directly through export or indirectly through re-exports from third countries.
Automobile manufacturers based in Mexico include Audi, BMW, Ford Motor Company, General Motors, Honda, Hyundai, JAC, Kia, Mazda, Mercedes Benz, Nissan, Stellantis, Toyota and Volkswagen.
Tesla has announced a new plant to be built in the Mexican state of Nuevo Leon as part of its electric vehicle production, although it recently reported that it is waiting to see who will win the US presidential election and the resulting regulations for the sector.
In response, the Mexican government criticized Tesla's speculation, questioned Musk's announcement as "not serious" and speculated that the company might have another business plan.
