Mexico Electric Vehicle (EV) Charger / Charging Station Market Overview, 2027

In Mexico, the number of vehicles owned by the populace is around 33.4 million. Now the total scenario of the automobile sector is changing in Mexico, due to the high pollution caused by the vehicles running on fossil fuels and its ever-increasing tariffs. Due to this, the Mexican government now focuses on alternative technologies for improving mobility in the country. An electric vehicle is an automobile, e-scooter, e-bike, or other vehicle having an electric motor that is fully or partially powered by batteries. The Mexican government has a strategic plan to improve mobility by replacing local transportation with zero-emission vehicles. The government is planning to increase the generation of electricity through clean energy from 25 to 35 percent. The EV market's growth in Mexico also influences the EV charging station market and other business opportunities like battery swapping, installation of batteries, etc. An electric vehicle charging station is equipment that connects an electric vehicle (EV) to a source of electricity to recharge electric cars, other electric vehicles, and plug-in hybrids. The EV charging firms receive government incentives such as exemptions from local taxes for the establishment of the infrastructure. Automation, electrification, sustainability, and connectivity will be the future of mobility.

According to the report titled “Mexico Electric Vehicle (EV) Charger/Charging Station Market Overview, 2027” published by Actual Market Research (ActualMR), the charging station market in Mexico is expected to grow at a CAGR of 40% by the end of the forecast period. In Mexico, the different segments of the charging station can be established on the basis of the requirements and demands of the population. People in Mexico mostly prefer to recharge their EVs at home. On the basis of the level of the charger in Mexico, three types of levels are level1, level2 and level3. The Level 1 charger is the slowest type of charger, which is plugged into 120V AC and provides an output of 2.4kW. charger is more suitable for the shorter range of 3 to 4 miles. Level 2 chargers charge electric vehicles three times faster than level 1 chargers. A Level 3 charger is the fastest charger and can recharge an EV with a rate of 3 to 20 miles per hour within a minute. Level 1 and level 2 are AC chargers, while level 3 is the DC charger. The main problem with the level 2 and level 3 is that in the long term they affect and damage the battery of the EV, so the market value of level 1 is higher in Mexico as compared to the other two levels, and its market share will also grow during the forecasted period, which is estimated at over 62%.

EVs started commercializing in 2014, although tax incentives and other measures remain low in the country. According to the Mexican Automotive Industry Association, only 11 EVs were purchased in the month of January 2018. As an emerging market, it has significant investment opportunities. China is in the process of establishing an electric automobile spare parts factory in the country. Both domestic and international players are focusing on the development of charging stations across the country to increase the use of EVs. Renault, Zacau, Nissan, Chevrolet, BMW, and Tesla models have been authorized to be available in Mexico’s market. According to the Mexican Automotive Industry Association (AMIA), the number of EVs purchased in Mexico since 2016 and until January 2018 is equal to 539. Mexico does not have any legal law for EVs, but general regulations like the weight of vehicles and security measures are applicable. The Federal Law on New Automobile Taxation exempts vehicles propelled by electric rechargeable batteries, as well as hybrid vehicles, from fees concerning their sale or import. The Comisión Federal de Electricidad (CFE), the largest electricity supply company in Mexico, promotes the use of EVs through the installation of an independent light meter. This prevents the applicable electricity tariff range from increasing, keeping the EV-user’s fee within the domestic standard spectrum instead of the high consumption rate.

The CFE, along with the vehicle industry, is working to improve the recharging infrastructure in the country. Charging facilities have been installed in various states and, according to statistics published by the Federal Government, in February 2017 there were 699 in place, 68% of which were public. During the Mexico Energy Forum 2018, the CFE announced that there are currently 900 charging facilities in the country, which means an increase of 201 charging centres, financed through a trust for energy transition and sustainable energy use.

In Mexico on the basis of types, there are two chargers available: slow, or moderate and the fast charger. A slow charger is an electrical outlet that is present in homes and businesses and typically operates on a 15 or 20-amp breaker on a 120-volt Alternating Current (AC) circuit and standard outlet. The fast charger is also known as a rapid charger or quick charger and aims to recharge EV batteries within a short period, similar to that for gasoline refuelling of conventional vehicles. In Mexico, the demand for slow or moderate chargers is higher as compared to fast chargers. The main reason is the safety of the battery of the EV. In a fast charger, the amount of heat produced during the charging is high and causes damage to the battery and affects its life cycle, but in a slow charger, a limited amount of heat is generated during charging the battery and it does not affect its life cycle. The market share of slow or moderate chargers is higher than fast chargers, and during the forecasted period its market share is estimated to be over 95%.

On the basis of application, the chargers are bifurcated as private and public charging stations in Mexico. A private EV charger is defined as any charge point that is not accessible by the general public—this is a home charge point or a charge point for the employees at a place of business. A public EV charger is defined as a charger that is available to the public at a particular location, like roadsides and nearby highways, along with the availability of parking space. In Mexico, the market share of the private charger is growing year by year and its market share is higher than the public charger. The reason behind this is the low availability of public chargers. The main issue with the public charger is the parking problem. The tariff of different public charging stations varies and depends upon the operating network.

The different market drivers which help in the growth of the EV charging station market are: high demand among the people; awareness about the benefits of EVs, and technological advancement. The challenges which affect the growth of EV charging stations are the different tariffs for recharging the battery, battery backup problems, lack of a proper location for the development of EV charging stations and the most important challenging factor, the cost of development and installation. The restraining factor is the lack of EV charging infrastructure, as the energy supply infrastructure is still thin and focused on limited locations. Without proper charging facilities, the growth is hampered as EVs cannot go long distances with today’s batteries. The weight-power ratio needs to be improved to increase battery capacity without making the vehicle heavier. The electric grid present in Mexican homes currently is insufficient to efficiently charge EVs.

The market for EVs and EV charging stations was also affected by COVID-19. It drastically reduced the manufacturing and sales of the EV, and also, due to the lockdown, there was no development in the infrastructure of the EV charging station due to a lack of supply of raw materials and other basic needs for its development.

Considered in this report

• Geography: Mexico

• Historic year: 2016

• Base year: 2021

• Estimated year: 2022

• Forecast year: 2027

Aspects covered in this report

• Mexico electric vehicle charging station market with its value and forecast along with its segments

• Various drivers and challenges

• On-going trends and developments

• Five force models.

• Top-profiled companies

• Strategic recommendation

By Types of chargers

• Slow/ Moderate

• Fast

By Type of charging levels

• Level 1 (AC charging)

• Level 2 (AC charging)

• Level 3 (DCFC)

By Application type

• Public

• Private

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual reports of companies, and analysis the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have to start verifying the details obtained from secondary sources.

Intended audienc

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the electric vehicle charging station industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.