EV Future in Mexico Perspective PDF

SGM3 Global Supply Chains Jacqueline Bürki, Omar Serrano & Sherban Leonardo Cretoiu with coaches: Angel Facio Mandujano & Jorge Mauricio Mancilla Electrical Vehicle, Mexico Angel Facio November 8th, 2024 Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences...

SGM3 Global Supply Chains Jacqueline Bürki, Omar Serrano & Sherban Leonardo Cretoiu with coaches: Angel Facio Mandujano & Jorge Mauricio Mancilla Electrical Vehicle, Mexico Angel Facio November 8th, 2024 Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences Contents v Perspective of EV adoption and sectors trends Ø Explore Growing EV mexican market o Quick Ramp Up o Risk and Challenges: limited infrastructure o Chinesse Brands impact in Mx Ø Consumers barriers o High cost and vehicle depreciation o Slow grow but constant in Region o Culture Ø Market Differentiation: o Rol of Goverment Policies o EV country infraestructure o Tesla pause investment for EV in Mexico among other Chinesse investors. Tariffs Contents Ø Integral vision about evolution of automotive industry in Mx. v Energy for EV industry: v Supplier development and evaluation. v AMIA Asociación Mexicana de la Industria Automotriz. Request to mexican president.  EV Future in Mexico, take the plunge v EV consumer definition: Price: Car average for termical in MX, 26.5 USD, 530k; EV -20% Raw material: Availability of Li, New NaCl Charge Infraestructure and : Points, time, place; Mx 80% are domestic, house and job vs 20% public Autonomy: current 450, new above 800 km Cultural issue, how many times user do a long trip? GHG: Carbon footprint, EV 50% than ICE, Vehicle life: EV 5- 7 vs TV 10- 15 years Green Energy availability Incentives: Free VA Tax, Gas CO2 emission, use bus line; Temporary vs permanet Gasoline vs Electrical Energy, goverment focus. 2030: 100% EV Production in Europe. Norway 25% vehicle park others OEM s strategies; VW 30% VE, 10k people would be fired, close plants in Germany New tariffs in UE for Chinesse VE: new EU vs Germany Spain 13.85 years turn; 12500 km/year Norway 4 to 8 years;  EV Future in Mexico, take the plunge …. v 2023 TIV Mexico market size: Production: 3.78million Sales: 1.36 million Chinesse manufacturing: 300k, 20% based on sales Traditional OEMs (VW, GM, etc): 150K, 50% Chinesse OEMs (BYD, ): 150K, 50% v Price: Average for ICE traditional vehicle in Mx: 26,5 kUSD = 530kMXN; EV -20% v Charge Infraestructure and : Points, time, place; Mx 80% are domestic, house and job vs 20% public Autonomy: current 450, new above 800 km Cultural: really long trip? v Energy: Renewable energy, 45% for 2030 (M. Ebrard) Develop distribution energy infraestructure even by private investors. v Incentives: Mx not incentives, only Gas CO2 emission. Additional tariffs for Chinesse products including, finish in October 2024, what is next? C. Sheinbaum would decide about VE eliminate imports tax decree Norway for example: VAT, use bus line, CO2 emission v Vehicle life: EV 5- 7 vs ICE 10- 15 years. v C. Sheinbaum must decide to choose between USMCA will continue in a good relatioship with US or/and support Cinesse investments in MX for ”nearshoring”. Source: AMDA Guillermo Automotive Industry in Mx. YTD September 2024: Internal sales 10.5 %, Exports 7.0%, Produccion +6.1% more than 2023. Automotive Sales in Mx: Hibrid & Electrical Vehicle YTD September 2024: 9.1 % of total sales. 1.5% electrics 7.0% Hybrids Currently Mx market prefers hybrids. Global automotive industry Mexico rank 7 Global Automotive Sales: Hybrids and Electrical 8.12% of total sales is E&H vehicles 5.73 % electrics 2.38 % Hybrids  Electrical Energy in Mx: “Promoting the energy transition” Ø Energy capacity in Mx for Homes: 3.36 GW Ø CFE will generate 54% and private generation 46% Ø Investment 19,992 musd in former president, plan 2024-2030 23,400 musd: Ø Projects : generation 60, Distribution 41, Adquisitions 13 Ø Private generation: long term licitations, participate with CFE, generation for use and sale Ø “Renewable energy and energy efficiency will be a feature of our goverment” Ø Renewable Energy availability 45% plan for 2030 (M. Ebrard) Electrical Energy in Mx: “Energy development plan” PRODESEN is a document published by Mexico goverment to exhibit annually the details of ENERGY PLAN based on national development plan, is setting the big goals of Energy Politics in electrical matter. In chapter 3 explain the demand and consumption, especially for the Electric and Hybrid vehicles. https://www.gob.mx/sener/articulos/programa-de-desarrollo-del-sistema-electrico-nacional-2024-2038 Electrical Energy in Mx: Electrical mobility Electrical Energy in Mx: Electrical mobility Ø National electric mobility strategy to reduce GHG Ø Promote public transport projects, including electric mobility Ø Sales of EV & HV in 2023: 72,574 units , 5.3% of total sales, +42% vs 2022. Ø States with more VE concentration: Mexico city, State of Mexico, Jalisco, Nuevo Leon y Puebla. Ø Benefits of VE: 39 to 70% of GHG vs combustion, saving energy 40 to 80%. Electrical Energy in Mx: Electrical mobility OEMs Manufacturing States Plants Light Vehicles 37 12 Heavy Trucks 16 11 8 Electrical Energy in Mx: Electrical mobility This forecast and analysis considering that for 2038, Mx will have about 6.3 millions of VE without shortage of cleen energy, the energy needed would be 18,293 GWh Electrical Energy in Mx: Electrical mobility Ø Emissions Saving: 311 mt CO2 for 2024 11, 211 mt CO2 for 2038 Ø Fuel Saved: 201 millions of liters for 2024 8,736 millions of liters for 2038  EV Future in Mexico (7 of 7), AMIA integrated plan request to CS 1. Set an integral policy. 2. Develop plan investment for VE infraestructure 3. Energy, more access to clean energy 4. Infraestructure development in Digital process, roads: 5. Mx would transform tp an innovation developmemt to enter to higher technological and modern industry. 6. Develop skillful labor force. Supplier development Ø Technical evaluation: Capacity and Capability. Ø Logistic:Packaging, CTPAT Custom Trade Partnership Against Terrorism Ø Quality: IATF 16949 Quality Management System; Customer Specific Requirements, IMDS Ø Purchasing: Cost Level, Cost reduction, Financial evaluation. Ø Corporate Social Responsibility:SAQ 5.0 Self Assesment Questionarie 5.0, ISO 26000 Ø ISO 14001 Environmental Management System. Angel Facio THANKS November 8th, 2024 Berner Fachhochschule | Haute école spécialisée bernoise | Bern University of Applied Sciences