Mexico has swiftly risen as a key player in the global electric vehicle (EV) manufacturing landscape. This shift toward sustainable transportation aligns with the international push to lower carbon emissions and boost renewable energy. Mexico’s strategic location, developed automotive industry, skilled workforce, abundant resources such as lithium - critical for EV batteries—have attracted significant investments from global automakers.
The EV Automotive Industry in Mexico
Download the free e-book to unlock access to additional information:
- Additional investments in the EV industry by foreign companies
- The Mexican states leading the charge in electric vehicle manufacturing
- The growth in domestic market sales and infrastructure for EV adoption in Mexico
- Mexico's innovation ecosystem plus notable electrification projects and incentives
- The role of the high technology sector in Mexico's EV industry
- And more...
Mexico's EV Industry Quick Facts
Production of EV's in Mexico
Mexico’s electric vehicle (EV) industry has experienced rapid growth in recent years. In 2020, Mexico produced 6.717 EV units, but by 2024, this number had surged to 206,870 units (Directorio Automotriz Mapeo Electromobilidad 2025). In the first 4 months of 2025 alone, the industry had produced 81,049 units.
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Why Global Automakers are Choosing Mexico for EV Production
Global automotive manufacturers are increasingly choosing Mexico for electric vehicle (EV) production due to strategic advantages in proximity, talent, and industry infrastructure. Nearshoring to Mexico allows companies to position themselves close to the vast U.S. market, reducing logistics costs and benefiting from favorable trade agreements like the USMCA, which eases cross-border commerce and boosts competitiveness.
Additionally, Mexico has a highly skilled workforce that is already adapting to electromobility demands, with technical expertise transitioning to meet the growing needs of EV production. Mexico's well-established automotive industry, with a mature network of suppliers and manufacturing capabilities, further strengthens its appeal as an EV hub. This combination of location, skilled labor, and industry infrastructure makes Mexico an attractive destination for automakers aiming to scale their EV operations efficiently and competitively.
EV Automotive OEM Assembly
Both international and domestic automobile companies are investing in Mexico. Many EV's are made in Mexico to be exported to their home countries, notable the U.S. and Germany. Others are planning a domestic and Latin America strategy for their EV OEM production plans in Mexico. This is the case for several Chinese OEM companies like BYD, BAIC, among others.
What EV's are made in Mexico?
Download the e-book for a breakdown of the EV industry by Mexican state.
In 2024, EV automotive OEM assembly plants produced a total of 206,870 units. At the beginning of 2025 the market began to shift, showing slumps in investment. Yet still, EV production in Mexico could still reach 250,000 units by the close of 2025 (estimated by Mapeo de Electromovilidad Q2 2025).
Electric Cars Made in Mexico
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❓What is the status of the Tesla Mexico factory?
The pause on Tesla's $5 billion Gigafactory project in Nuevo León has generated much discussion following Elon Musk's announcement. Initially intended to support Tesla’s nearshoring strategy by moving production closer to the U.S., the project now faces delays due to economic and political uncertainties, especially the potential for high U.S. tariffs on Mexican-made vehicles proposed by Donald Trump.
While Governor Samuel García is optimistic, noting Nuevo León's readiness and infrastructure, the federal government highlights that Tesla has yet to register the investment. This situation reflects the challenges of global investments in a volatile political landscape, yet Mexico remains an attractive investment destination, as shown by its record $20 billion in foreign direct investment in early 2024. The project's future hinges on U.S. political developments, but Mexico’s potential in the EV and manufacturing sectors remains strong. Read full article on LinkedIn.
Mexican EV Imports & Exports
In 2020, the Ministry of Economy (SE) published a decree in the Official Gazette of the Federation (DOF) that eliminated import tariffs on electric cars in Mexico.
Since EV car production in Mexico was still developing, the government aimed to encourage international purchases of these vehicles to help reduce greenhouse gas emissions in the country.
The decree was in effect from September 4, 2020 until September 30, 2024. Yet it seems to have been very effective in flooding the market with EV imports. According to EMA, the Electromobility Association, Mexico sells 79 electric vehicles of Chinese brand and origin. These include JAC, BYD, SEV and MG along with manufacturers that produce some electric models in China such as Volvo, BMW and Renault.
According to INEGI, 196,381 electrified vehicles were exported during 2024, or95% of EV’s produced in the country.
Mexico's Role in the EV Supply Chain
Mexico's growing EV industry is also supported by a robust supply chain. As of March 2025, there were 439 assemblers, suppliers or buyers related to EV's in Mexico. According to Directorio Automotriz, 78% of them are Tier 1 & 2 Suppliers:
- Battery Suppliers - 36%
- Electric Power Train Suppliers - 16%
- Fuel Cell Systems Suppliers - 2%
- PCU Suppliers - 6%
- Brake System Suppliers - 10%
- Other Suppliers - 30%
Investments in the EV Supply Chain
During the first semester of 2025, investments related to electric vehicles was only $78.6 million dollars, according to Mapeo de Electromovilidad. This represents a 97.4% decrease compared to the same period in 2024.
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This sharp decline reflects growing uncertainty around:
- Shifting global EV demand
- Tariff policy changes in North America
- Delays of key OEMs amid geopolitical caution
Download the ebook to see more details of the investments in the EV industry by state, as well as the domestic sales of EVs in Mexico.
Mexico's Innovation Supply Chain
Mexico is actively building an environment for EV battery and strategic supply chain innovation. Mexico's high-technology sector has seen significant growth, with a 5-10% annual increase over the past decade, essential for supporting the transformation of industries such as automotive. The high-tech industry includes advanced processes, products and services like AI-smart manufacturing, and high-performance materials, all crucial for Mexico's competitiveness in the electric vehicle market.
Production of EV Batteries in Mexico
As of 2025, there are several Mexican states with ongoing projects for the development of EV batteries. These projects are centralized around the production of lithium batteries. Some battery investment announcements:
BMW Battery Assembly in San Luis Potosi
Coming online in 2027, the $585 million battery assembly center will be located alongside its manufacturing operations.
Volkswagen's First, Foreign Battery Plant
Starting 2026, several EV models are projected to be produced in Volkswagen's Puebla facility, including its first battery plant outside of Germany.
CATL Announced Battery Plant in Ciudad Juarez
Announced to build a plant in Ciudad Juarez, Chihuahua to supply Tesla (on hold).
Automotive Tech Suppliers
Driven by national security concerns, major EV supply chain companies are relocating operations to North America. Foxconn, the world’s largest contract electronics manufacturer, is investing $690 million in Mexico and partnering with Nvidia to launch an AI server facility, set to begin production in 2025, boosting the country’s AI-related hardware capabilities.
Under Plan México 2030, the government aims to:
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Cut battery supply chain dependency by 10%
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Double exports of locally sourced EV and semiconductor components
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Reshore $10 billion in semiconductor assembly, testing, and packaging (ATP) operations
Two strategic programs are also underway: IMMEX 4.0, modernizing the manufacturing framework for semiconductors and EVs, and the Kutsari Program, establishing a semiconductor design center to strengthen national innovation and reduce foreign dependency in high-value sectors like automotive and medical devices.
Mexico's Critical Mineral Strategy
Mexico ranks 7th globally in copper production, reaching 743,000 metric tons of production in 2023 (Mapeo Electromovilidad Q2 2024). In fact, Mexico is among the top three suppliers for 14 of the 50 critical minerals identified by the United States - including its largest supplier for fluorspar, strontium, and gold.
Mexico is also believed to have the world's largest lithium deposits, concentrated in the Mexican state of Sonora. Recognizing this potential, the federal government has made lithium a strategic resource for the country's development, nationalizing it in 2022.
Mexico Automotive Industry
Mexico's automotive industry is crucial in importance not only to Mexico but also to North America. Download the 2025 Automotive Industry Report for additional information.
About 3-4% of Mexico's GDP is attributed to the automotive industry, with the export dominating the landscape. About 88% of the automobiles made in Mexico are exported, and 87% of these end up in the United States.
OEM Car Factories in Mexico
There are a total of 21 automotive OEMs in Mexico that manufacture vehicles. Nearly 84,000 employees work in Mexico's OEM facilities (AMIA).
Note - BAIC is not included due to the limited production process of their imported vehicles.
EV Sales in Mexico
During 2024, the sale of hybrid, plug-in-hybrid, and electric vehicles totaled 124,310 units, reaching 8.3% of total vehicle sales in Mexico. Electrified vehicle sales in Mexico grow 68.7% over 2023. The segment with the greatest growth was PHEV, with a 21% of market share at the end of 2024.
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For 2025, the electrified vehicle sales in Mexico are expected to be similar to 2024 results, with 125,162 units projected to be sold, corresponding to a similar make-up of models to the 2024 results.
Mexico's Electrification Goals
One of the country’s key targets is to generate 35% of its energy from clean sources by 2024 and 50% by 2050, in line with the Paris Agreement. The Mexican government has made significant strides in this direction by promoting renewable energy projects, particularly in solar, wind, and geothermal power. According to data from the Ministry of Energy (SENER), renewable energy generation accounted for nearly 30% of Mexico’s total electricity production in 2022, demonstrating notable progress toward its 2024 target.
Download the ebook for some notable electrification projects in Mexico.
Sheinbaum's Clean Energy Agenda
Claudia Sheinbaum, the former Mayor of Mexico City and current President of Mexico, has made clean energy and sustainability a cornerstone of her political agenda.
Throughout her tenure as mayor, she implemented several key initiatives aimed at reducing the city’s carbon footprint, particularly by promoting renewable energy and enhancing energy efficiency in public infrastructure. One of her signature projects was the expansion of Mexico City’s electric public transport system, including the trolleybus and electric bus fleets. She also oversaw the installation of solar panels in public schools and government buildings, and championed Mexico City’s Climate Action Program, which aimed to reduce greenhouse gas emissions by 30% by 2030.
Looking forward, Sheinbaum’s broader clean energy goals for Mexico focus on accelerating the country’s transition to renewable energy sources and reducing its dependence on fossil fuels. She advocates for increasing investment in solar, wind, and geothermal energy, and supports the expansion of electric vehicle infrastructure to make clean transportation more accessible nationwide. Sheinbaum has emphasized the need for a just energy transition that benefits all Mexicans, including rural and low-income communities, by creating green jobs and ensuring that clean energy technologies are affordable and widely adopted.
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