Mexico Automotive Electric Bus Market Size

Mexico Automotive Electric Bus Market Analysis

The Mexico Automotive Electric Bus Market size is estimated at USD 0.28 billion in 2024, and is expected to reach USD 1.09 billion by 2029, growing at a CAGR of 31.62% during the forecast period (2024-2029).

• The COVID-19 pandemic compelled about 95% of all automotive-related companies to put their workforces on hold due to lockdowns. Globally, the repercussions of the lockdown were immense and unprecedented due to the halt of manufacturing activities. However, the market was expected to regain its momentum as economic activities resumed and vehicle production rose worldwide.
• Electric buses are becoming more popular owing to two factors, which include minimizing pollution and lowering maintenance and operating costs when compared to hybrid diesel-electric buses. The cost of fuel heavily influences the cost of transportation. Diesel prices are growing every year. On the other hand, electric buses are substantially less expensive in the long term and provide a pleasant method of transportation compared to diesel and gasoline engine buses. This, combined with the need to reduce emissions in order to meet growing regulatory inspection, will fuel market growth for completely electric buses.
• Transitioning from traditional fuel-powered municipal buses to emission-free transportation would be a key element in boosting the demand for electric buses in the region. Increased government investments in public transportation will drive market expansion over the coming years. However, the high purchase cost would limit the expansion of the Mexican electric bus market.