Could Mexico become a transport decarbonization leader?

Could Mexico become a transport decarbonization leader?

Fleets in Mexico have an appetite for zero-emission medium- and heavy-duty vehicles across all segments.

A new analysis by CALSTART and its Global Commercial Vehicle Drive to Zero program and campaign (Drive to Zero) finds that Mexico (one of the world’s leading truck manufacturers) could achieve significant climate emission reductions by strategically accelerating zero-emission transport. The report, “Technology and Commercialization Pathways for Zero-Emission Medium- and Heavy-Duty Vehicles in Mexico,” analyzes the technical feasibility of the country achieving 30% new zero-emission medium- and heavy-duty (ZE-MHDV) truck and bus sales by 2030 and 100% new ZE-MHDV sales by 2040. The report takes into consideration existing market conditions, barriers, opportunities, and sales data for the Mexican MHDV market.

“Mexico has one of the largest networks of publicly available charging stations in Latin America, the country has favorable import and sales tax rules for zero-emission vehicles, and fleets are signaling strong interest in zero-emission trucks – but much more must be done,” said Jessica Olson, vice president of policy for CALSTART, who produced the report. “A clear and ambitious policy framework for accelerating zero-emission trucks and buses will significantly reduce Mexico’s growing transport emissions.”

Top findings of the report include:

  • Mexico can achieve 36% new zero-emission medium- and heavy-duty vehicle sales by 2030, if it sets ambitious policy goals and creates a supportive ecosystem for accelerating zero-emission transport.
  • Based on market conditions, five out of the six truck and bus categories analyzed could reach between 94% and 100% zero-emission sales by 2040 in Mexico.
  • If the proposed targets are achieved, Mexico could prevent the consumption of close to 60,000 million gallons of diesel fuel by 2050. The annual greenhouse gas (GHG) emissions avoided from reducing this diesel consumption would be the equivalent of removing more than 13 million passenger cars by 2050.
  • The cost of electric vehicles and charging infrastructure is the most-cited barrier to limiting zero-emission truck and bus adoption in Mexico. However, multiple studies have shown that total cost of ownership parity with diesel will be achieved before 2030, and much sooner in segments like transit buses and cargo vans. An ICCT case study of Mexico’s BRT system Metrobús showed that in 2022 battery-electric vehicles were already 21% cheaper than diesel if operated over 10 years.
  • Fleets in Mexico are showing a growing demand for ZE-MHDVs, with purchase orders exceeding 1,690 vehicles across all segments in 2022.

The ZE-MHDV targets analyzed in the new report have already been adopted by 27 countries around the world — including the United States, Canada, Chile, Uruguay, the United Kingdom, the Netherlands, and others— under the Global Memorandum of Understanding on Zero-Emission Medium- and Heavy-Duty Vehicles (Global MOU). Global MOU signatories agree to set a goal of at least 30% new ZE-MHDV sales by 2030 and 100% new ZE-MHDV sales by 2040.

“As the seventh-largest vehicle manufacturer and the largest truck exporter in the world, transport is deeply embedded with Mexico’s economic growth,” said CALSTART’s Ricardo García Coyne, who co-authored the report. “By setting strategic goals and taking action now, Mexico can dramatically shift its transportation sector toward zero-emission technologies. Doing so would mitigate the risk of strong economic downturns for the Mexican automotive industry, while also cutting dangerous diesel emissions that harm its environment and people.”

You May Also Like

Lucid Group reports positive financial outlook in Q3

Lucid’s Q3 report includes info on a new SUV, COO appointment, closing an Aston Martin deal and adjusting 2023 production from 8,000 to 8,500.

Sapphire_Lucid_Air

Lucid Group released financial results for its third quarter ending Sept. 30, 2023. Lucid reported Q3 revenue of $137.8 million on deliveries of 1,457 vehicles and produced 1,550 vehicles. The company is also adjusting its production outlook for 2023 to 8,000–8,500 vehicles to prudently align with deliveries.

"We delivered on our commitments to complete the Lucid Air lineup on time with Pure RWD and Sapphire, transition general assembly to our Phase 2 factory in Arizona, and open our first plant in Saudi Arabia. We recognize we still have work to do on our customer journey and deliveries," Peter Rawlinson, Lucid's CEO & CTO, said.

Volvo’s EV sales comprise 18% of total volume

Volvo reported a 14-month-straight sales increase fueled by strong EV demand.

Volvo-EV-cars-sales-1400
Yokohama debuts Advan Sport EV tire at Electrify Expo

The Advan Sport EV will be offered in 10 sizes ranging from 18 to 20 in., and goes on sale Jan. 1.

Advan sport EV Yokohama
NREL forecasts 80% drop in U.S. transport emissions by 2050

NREL’s study highlights rapid adoption of zero-emission vehicles as crucial for an 80% emissions reduction.

EPA-Emissions-Standards-1400
Kia EV models set all-time October sales record

Kia’s EV models saw a year-over-year increase of 83%, with the EV6, in particular, setting an all-time October sales record.

Kia_America_Sportage_Pro

Other Posts

Daimler Truck North America partners with Hexagon Purus

Hexagon Purus’ zero-emission technology will be integrated into a battery electric vocational Freightliner eM2.

DTNA-partnership-1400
Loblaw adopts Volvo VNR electric trucks for grocery transport

The largest food/pharmacy retailer in Canada has selected Volvo’s VNR Electric for grocery delivery in Montreal.

Volvo-electric-truck-1400
Cummins hydrogen-ICE engines to power concrete mixer trucks

The project aims to develop a full hydrogen eco-system together with a hydrogen producer, vehicle manufacturer and end user.

Cummins-Terex-Advance-Commander-FD5000-front-discharge-mixer-truck
GreenPower unveils 300-mile range all-electric school bus

GreenPower’s Mega Beast promises an extended range, catering to diverse school district needs nationwide.

GreenPower_Motor_Bus