Mexico Electric Bus Market - Segmented by Vehicle, Technology, and Consumer - Growth, Trends, and Forecast (2018 - 2023)
The Mexico electric bus market has registered a CAGR of 25%, during the forecast period. The electrification of the transportation sector has been critical in tackling the climate change predominant in the country. According to the IEA, in order to limit the average temperature increases to 2°C – it is crucial to reduce carbon emissions by around 25% from the transport sector.
Government Policies to Cut Down Carbon Footprint
The country passed an ambitious climate change law in 2012, and had since, pledged to reduce GHG emissions by 40% by 2030. Reducing the country’s carbon footprint from transport sector, which is responsible for 22% of yearly emissions, will be critical if Mexico is to meet its goals. Also, Mexico City tested a hybrid bus from December 2014 to January 2015 and had offered contracts to BAE systems for supplying the buses.
Advancements in Manufacturing Efficient Diesel Engines
More efficient diesel engines are being developed, which reduce their NO2 exhaust percentage by more than 55%. Electric Buses these days are managing a 200-mile trip on a full charge of the battery when compared to a diesel bus, which can provide 400 miles on its full tank (around 500 liters) fuel. This difference, clubbed with lesser number of charging stations is heavily pulling back the growth of Electric Bus market in Mexico.
The major trends emerging in the market has increased emphasis on innovation and increased investments in R&D. BYD Company, is testing its 12 meters long electric bus with transport companies in Mexico, to integrate its 8 meters long model and incorporate it as an articulated unit. Therefore, this technology eliminates the process of conventional non-autonomous charging mechanism. However, high costs compounded by a sparse network of public charging infrastructure, and a lack of incentives for private distributors to expand them giving the government’s monopoly of the electricity market. Local and federal governments and the private sector should work together to create a network of incentives that ensures that the economic, environmental, and public health benefits of EVs outweigh their estimated total cost of ownership.
Mexico City tested a hybrid bus from December 2014 to January 2015, though it has not yet tested any purely electric buses. High costs are compounded by a sparse network of public charging infrastructure and a lack of incentives for private distributors to expand them given the government’s historical monopoly of the electricity market. However, there are many stations that offer services free of charge – a benefit provided by automakers and businesses to encourage the electric bus adoption. In Mexico City, moreover, electric buses are exempted from the “Hoy No Circula” program, which limits the days that vehicles can be on the road.
Key Developments in the Market
March 2018: FlixBus, plans to expand its low-cost service and test all-electric bus routes, aiming to become a pioneer in a more sustainable form of intercity transit
Major Players – Daimler, Nanjing Jiayuan EV, Iveco, Anhui Ankai Automobile, Ryobi Bus, Volvo, among others.
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