One of the United States’ largest industrial competitors is China. Reminders of this are in everyday consumer items from the computer or smartphone you’re reading this article on, to the shirt on your back, but there is one area that they are dominating in outside the United States.. Caveats like the lack of a robust charging network and, more importantly; the high cost of electric vehicles in the U.S., turns off many buyers before they get a chance to hit the road.
To put the cherry on top, the U.S. Inflation Reduction Act of 2022 allows certain EV’s made in North America to qualify for the full $7,500 federal tax credit, which enables cars like the Mach-E to be built in Mexico. Like the U.S., Mexico’s government has high hopes for EVs, wanting them to be half of all cars sold in the country by 2030. In 2022, EVs and other zero-emission vehicles accounted for just 1% of all new car sales.
In addition, the Mexican Secretariat of Economy indicated that large monetary investments in the country are underway. In 2022, $397 million in direct new investments came to the country from China and is bearing fruit.