Mexico’s electric vehicle sector is entering 2025 with unprecedented momentum, building on a year of rapid expansion and positioning itself as a central player in the global shift to electromobility. Data from the Electro Movilidad Asociación (EMA), founded in March 2024 with the target of reaching 50% EV sales by 2030 and 100% by 2035, illustrates the pace of change. In the first quarter of 2025, EMA member companies sold 20,560 plug-in hybrid (PHEV) and battery electric vehicles (BEV), a leap from 5,277 units in the same period of 2024. This nearly 290% surge underscores a growing consumer appetite for electrified transport. According to “Mapping Electromobility 2025” by Cluster Industrial B2B, sales of fully electric vehicles rose 72.84% in early 2025 compared to 2023.
Yet the adoption landscape remains layered. Between January and May 2025, hybrid electric vehicles (HEVs) accounted for 78.22% of all “new technology” vehicle sales, with BEVs at 14.24% and PHEVs at 7.54%. BEVs represented just 1.31% of the total light vehicle market in that period, indicating that hybrids and PHEVs continue to serve as transitional technologies for consumers wary of charging infrastructure limitations or higher upfront costs.
On the manufacturing side, Mexico’s production of electric vehicles grew 72.27% in the first months of 2025 compared to the previous year. Output is projected to exceed 250,000 units by year’s end, a 21.17% increase over 2024. The supply chain is expanding rapidly, with over 439 companies active in the sector—a 37.1% rise in seven months. High-profile models such as Ford’s Mustang Mach-E and GM’s Equinox EV and Blazer EV are anchoring domestic production, reinforcing Mexico’s role as a North American EV manufacturing hub.
Charging infrastructure, however, remains a critical bottleneck. As of the first quarter of 2025, Mexico had 47,456 EV charging points, up 5.5% from late 2024. Of these, 92.5% are private, leaving just 7.5% publicly accessible. The ratio of 41 vehicles per public charger contrasts sharply with the 2023 global average of 2.6. Surveys reveal that 87% of EV users believe long trips require more planning than with gasoline vehicles, and 81% express concern about charging on such journeys. Payment convenience is also an issue, with 68% of users wanting direct card payment options. Connector variety—NACS, J1772/CCS1, GB/T, Type 2/CCS2—adds complexity, though recent adoption of NACS by major North American brands points toward standardization.
Government policy and private investment are converging to address these hurdles. Federal incentives include exemption from the ISAN tax on new cars, accelerated depreciation, and a 30% tax credit for public charging station installations. State-level measures such as verification and tenancy exemptions, “green plates” for unrestricted circulation, and toll discounts in some regions add further appeal. The Comisión Federal de Electricidad (CFE) offers free installation of separate meters for home charging, supporting individual adoption.
Legislative developments are also in motion. Amendments to the General Law on Mobility and Road Safety aim to embed sustainable transport principles, while a proposed Law for the Promotion of Electromobility would establish it as state policy. In March 2025, new General Administrative Provisions (DACG) were published requiring large-scale renewable projects to include 30% battery storage, strengthening grid stability for EV charging.
Foreign direct investment is intensifying, particularly from Chinese automakers. BYD plans to double its Mexican sales to 80,000 units in 2025 and expand its dealership network, despite reported geopolitical challenges to establishing a local plant. Interest from two additional Chinese EV companies in building factories in Durango reflects Mexico’s strategic advantage for serving the Americas under evolving trade conditions.
The remainder of 2025 is expected to bring sustained sales growth, especially in PHEVs and BEVs, as model variety expands and more affordable options enter the market. Public charging infrastructure is likely to see accelerated development along major corridors and in urban centers, supported by regulatory changes to improve access and payment systems. Legislative clarity on electromobility could provide investors with greater certainty, while domestic production is set to rise further through nearshoring and supply chain localization. Addressing cost barriers will be essential, potentially through local component manufacturing, competitive financing, and targeted subsidies. Grid integration efforts, bolstered by energy storage mandates, will play a critical role in supporting the expanding EV fleet.