Mexico could become the top electric vehicle (EV) exporter to the United States in 2024 after EV shipments surged in the first half of the year, along with revenues.
U.S. Department of Commerce data shows that Mexico shipped EVs worth US $3.127 billion to its northern neighbor in the first six months of the year, an impressive 172% increase in EV export revenue compared to $1.15 billion in the same period of 2023.
Mexico ranked as the second biggest EV exporter to the world’s largest economy between January and June, behind only Germany.
German EV exports to the U.S. increased by a comparatively meager 7.8% in annual terms to reach $3.213 billion, or just $86 million more than Mexico’s revenue.
South Korea was the third biggest EV exporter to the U.S. in the first six months of the year, followed by Japan and Belgium.
The United States imported EVs worth a total of $11.95 billion in the period, a 36.1% year-over-year increase.
If Mexico maintains its strong EV export growth in the second half of 2024 it could finish the year as the top external supplier of electric vehicles to the United States. That would be an additional feather in the cap for Mexico, which dethroned China to become the largest overall exporter to the U.S. in 2023.
Among the automakers that make EVs in Mexico are Audi, BMW and General Motors.
Foreign automakers with plants in Mexico benefit from the United States-Mexico-Canada Agreement, the free trade pact that superseded NAFTA in 2020.
Tesla and BYD — the world’s two top electric vehicle manufacturers — have announced plans to open plants here, but it is unclear when they might open.
Mexico’s EV exports increased more than 18,000% (yes, really!) in just 4 years Â
United States data shows that the value of EVs exported to the U.S. from Mexico in 2019 was just $21 million.
Revenue increased slightly to $25 million in 2020 — when the COVID pandemic disrupted auto production — before skyrocketing to $1.732 billion in 2021, a jump of 6,828% in just one year.
The value of Mexico’s EV exports rose to $2.346 billion in 2022, a 35% year-over-year increase, before surging to $3.811 billion in 2023, an annual gain of 62%.
The increase in Mexico’s EV revenue between 2019 and 2023 was a whopping 18,047%.
If the value of Mexico’s EV exports to the U.S. in the second half of 2024 matches that of the first half, revenue will be $6.254 billion.
That figure would represent an increase of almost 30,000% compared to 2019.
The numbers could be even more impressive – and mind-boggling – in the years ahead.
With reports from El EconomistaÂ
is anyone buying an EV here in the USA??? I read articles of the US major car makers losing BIG $$$ ( or lots of MXN pesos ) on EV cars . . . perhaps a “blood bath” is on the horizon for the US auto makers after all . . .
We have just bought a Chinese brand hybrid. For around $15K less than a comparable US or European brand. With a 5-year bumper-to-bumper warranty, it seemed like a no-brainer for us. This is the same strategy the Korean brands used to enter the US market years ago, and I’m guessing it will work for the Chinese too.
I noticed you bought a “hybrid” which I believe is exempt from the all-EV models of Chinese origin in the USA. As a transition to all-EV, hybrids is a no brainer and should be the standard minimum electric for ALL new vehicles.
BTW, I tried to buy a new hybrid for my place in Mexico last year and couldn’t find one at any reasonable price. Bought a KIA gas instead.
With the US & Canada placing 100% tarriffs
With the US & Canada placing 100% tariffs on Chinese EVs and Tesla walking back his commitment in Mexico, I don’t understand how the math would work for MX to become the #1 EV exporter to the US. Personally, I would love to see affordable EVs available in the US, regardless of the Country of origin. There is an EV market, it is not all doom & gloom that the media reports. EV ownership, as a percentage, is up. The problem is manufacturers over committing and over investing in their EVs. That along with ridiculous retails and 70%+ depreciation rates, it’s still a rich man’s game. Affordable EVs would do very well. A more likely outcome will be hybrid EVs with 50-ish miles electric range, then switching to the internal combustion engine that will allow for longer trips and eliminate the cold weather & extreme hot weather battery degradation concerns. I’m shopping the Audi GT/GT RS e-tron on the secondary market. You can buy like new executive owned cars for 1/3rd of the original MSRP. Many others are doing the same. So there is definitely a market for affordable EVs.
At this stage, I don’t believe Mexico is manufacturing any Chinese branded EV’s. Should BYD or other Chinese brands establish EV plants in Mexico, the issue of imposing stiff tariffs by the US and Canada on these Chinese branded EV’s is certain to arise. Right now, the USMA trade agreement would not prevent Mexico from exporting Chinese branded products to the US duty free. Downstream, however, the 2026 renegotiation of USMA could impose tariffs by Canada and the US on Chinese branded EV’s manufactured in Mexico for export.
One other point, I think Elon will go ahead with a mega plant in Mexico next year depending on the outcome of the US election, and how tariffs and views on the USMA shake out by a new administration.
There was generally far too much of a kneejerk reaction by most global automakers in their virtually wholesale plans to switch to full electrics. The market wasn’t & isn’t yet ready to accept full electric vehicles in sufficient numbers to support profitability, vs. heavy losses. They’re now all quickly scaling back to hybrids + extending the lives of their ICEs, excluding the Chinese who clearly want to dominate the global EV market, at virtually any cost. Global battery technology still has a long way to go for consumer vehicular applications, re capacity/range, safety, weight, cost, etc. Plentiful & dependable public recharging infrastructures still don’t sufficiently exist in most markets; they’re virtually non-existent in Mexico today. Mexico may be in for a big surprise if & when the Chinese actually start producing all those promised “Hecho en Mexico” EVs. The now-prevailing US & Canadian 100% tariffs on “Chinese” EVs may be applied to those Mexican-made Chinese electric vehicles too, in whole or in part, subject to the legitimate extent of North American material & labor content. No doubt the Chinese will be aggressively retaliating on those hefty tariffs, as they’re now doing by likely applying costly counter tariffs on Canada’s huge exports of canola to China. That won’t be the end of it by China. If car buyers choose to get into the electric vehicle market today, it’s arguably best to stick with established global brands of hybrids for now; you’ll always have a dependable gas engine to get you home!