Market Trends of Mexico Automotive Electric Bus Industry
Increasing Adoption of Electric Buses
- Electric buses help reduce 81-83% of the maintenance and operating costs compared to diesel engine buses. Electric buses offer more comfort to travelers compared to gasoline or diesel buses. The NVH levels in electric buses are minimal, unlike traditional diesel buses, thus providing enhanced comfort to passengers.
- Mexico has progressive plans for the transition, and the country is focusing on increasing its share of electricity through various clean sources to 35% by 2024, 40% by 2035, and 50% by 2050.
- To improve the quality of air with zero carbon emissions, minimize noise pollution, and offer a better commuting experience, the Cities Finance Facility (CFF), under the support of Mexico City, Guadalajara, Monterrey, and Hermosillo, set up the country's first national system focused on the electrification of their public transport systems.
- Currently, Mexico is one of the most promising markets in the world, and it is expected to lead the demand for e-buses over the forecast period. Mexico City is acting as a pioneer for this transformation as its public transportation fleet is increasingly being electrified. In order to meet the move toward public electric transport, local governments are putting out tenders for electric buses. For instance,
- In October 2021, Mexico City's first batch of 10 electric BRT buses, called the Yutong 18-meter full-electric BRT buses, were formally delivered and placed into service in Mexico City. This is not only the world's first BRT system run by 18-meter full-electric high-platform buses, but it is also the Mexican market's first mass-produced debut of Yutong electric BRT buses.
- In April 2021, Volvo Buses announced plans for testing the Volvo 7900 Electric bus in Mexico City, extending its global reach to the Latin American market. The completely electrified bus is 12 meters in length and is being tested on the Mexico City Metrobus system's route 4.
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High Growth Anticipated for the Battery Electric Bus Segment
- Electric buses have been widely adopted for public transportation by transit authorities across the country. Due to ongoing e-bus purchase orders, Mexico is predicted to have a high adoption rate of battery-electric buses throughout the forecast period. The country's government has implemented a number of measures to encourage electric vehicles and make clean transportation technology more accessible to reduce emissions.
- For instance, the country announced that it is planning to purchase about 500 double-source trolleybuses over the next five years, and 63 Yutong trolleybuses were delivered between late 2019 and early 2020.
- The government and major automotive companies are also investing in the country. For instance, in June 2023, Volvo Buses launched the new LUMINUS electric bus manufactured locally at the company's production plant in Tultitlan, Mexico. The new LUMINUS electric bus is based on proven Volvo BZL technology and comes in lengths from 9.7 to 13 meters, as well as battery configurations ranging from 280 to 470 kWh, with the battery pack positioned to make the best use of all the interior space.
