Mazda Considers Building EVs in Mexico
Good morning! It’s Friday, July 14, 2023, and this is The Morning Shift, your daily roundup of the top automotive headlines from around the world, in one place. Here are the important stories you need to know.
Mazda’s Plans for Electric Vehicles
Mazda, the renowned Japanese automaker, is considering building electric vehicles (EVs) in Mexico. While the company has not made a final decision yet, it is exploring the possibility of manufacturing EVs at its plant in Salamanca, Guanajuato.
The move comes as part of Mazda’s commitment to expanding its EV lineup and meeting the growing demand for electric vehicles worldwide. The company aims to have EVs account for 25% of its global sales by 2030.
Why Mexico?
Mexico has become an attractive destination for automakers due to its strategic location, skilled workforce, and favorable trade agreements. The country offers easy access to both North and South American markets, making it an ideal manufacturing hub.
Mazda already has a strong presence in Mexico, with its Salamanca plant producing various models for the North American market. By leveraging its existing infrastructure and supply chain, Mazda can potentially streamline the production of EVs and reduce costs.
The Challenges Ahead
While Mazda’s plans to manufacture EVs in Mexico are promising, there are several challenges that need to be addressed. One of the main concerns is the lack of charging infrastructure in the country.
For EVs to gain widespread adoption, a robust charging network is essential. Mazda will need to work closely with the Mexican government and other stakeholders to develop a comprehensive charging infrastructure plan. This will involve installing charging stations across the country and promoting public-private partnerships to accelerate the deployment of EV charging infrastructure.
Another challenge is the availability of raw materials for EV batteries. The production of lithium-ion batteries, which are crucial components of EVs, requires rare earth metals such as lithium and cobalt. Ensuring a stable supply of these materials will be crucial for Mazda’s EV manufacturing plans.
Environmental Benefits
By manufacturing EVs in Mexico, Mazda can contribute to reducing greenhouse gas emissions and promoting sustainable transportation. Electric vehicles produce zero tailpipe emissions, helping to improve air quality and mitigate climate change.
Mazda has been actively working on developing more fuel-efficient internal combustion engines and hybrid technologies. By adding EVs to its lineup, the company can further enhance its environmental credentials and offer customers a wider range of eco-friendly options.
Conclusion
Mazda’s consideration of building EVs in Mexico reflects the company’s commitment to embracing electric mobility and meeting the evolving needs of consumers. By leveraging its existing manufacturing capabilities and strategic location, Mazda has the potential to become a significant player in the growing EV market.
However, challenges such as charging infrastructure and raw material availability need to be addressed for Mazda’s plans to materialize successfully. With the right investments and partnerships, Mazda can pave the way for a greener and more sustainable automotive industry in Mexico and beyond.
Sources:
https://jalopnik.com/mazda-wants-to-build-evs-in-mexico-but-isnt-rushing-1850640242
