Mexico’s auto industry needs tax incentives to accelerate transition to electric mobility

According to leaders of the critical economic sector, Mexico’s auto industry needs tax incentives to accelerate the transition to electric mobility.

The executive president of the National Association of Bus, Truck and Tractor Manufacturers (Anpact), Miguel Elizalde, said the industry’s future is “zero emissions.”

“And to achieve this goal, we will have to coexist for several years with different technologies, so we have to work on this energy infrastructure from today,” the expert said at a press conference.

The head of Anpact was also accompanied by representatives of the Mexican Association of the Automotive Industry (AMIA), the Mexican Association of Car Dealers (AMDA), and the National Auto Parts Industry (INA).

According to the experts, Mexico must promote the electrification of the vehicle fleet through comprehensive public policies, including adapting the regulatory framework and developing a network of charging stations.

In addition, fiscal and non-fiscal incentives must be created for the use and purchase of electric vehicles and for the production of light electric vehicles in the country.

Industry representatives agreed to promote the integration of the value chain for producing semiconductors and batteries for electrified vehicles in North America.

AMIA President José Zozaya said that global automakers have made firm commitments to electrification between 2025 and 2050 and that Mexico should join these efforts.

According to AMIA, in 2021, Mexico was the world’s fifth largest exporter of light vehicles and the first in Latin America.

In the first half of 2022, the automotive industry contributed 3.6 percent to Mexico’s gross domestic product (GDP) and 18.0 percent to manufacturing.

Mexican GDP recovered 4.8 percent in 2021 from an 8.2 percent slump in 2020, the worst performance since the 1930s due to COVID-19 spillover effects.

Private analysts surveyed by the Bank of Mexico (Banxico) project economic growth of 1.9 percent in 2022.

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