Citizens will invest 250 million dollars in an electric vehicle plant in Puebla
January 25, 2022
Ivet Rodríguez / @Ivet2R
The compound will generate 400 direct jobs and will have the capacity to manufacture up to 1,400 units per year.
US energy solutions company Citizens will invest 250 million dollars to build a plant for last-mile electric vehicles in Puebla. The compound will host four assembly lines with the capacity to manufacture 1,400 units per year. In its first stage, it will create 400 direct jobs and around 1,600 indirect jobs.
The plant will start making two models: a 6.5 meter long van with a capacity for 24 passengers and another cargo vehicle, similar in size. Both will be marketed in Mexico under the Link brand name.
Sergio de la Vega, CEO of the firm in Mexico, explained in an interview that the units are designed for urban transfers, that is, to travel short distances in traffic conditions that enable a consistent regeneration of energy. Their autonomy will range between 200 and 300 kilometers per charge depending on the needs of customers.
The vehicles were developed by Chinese company EV Dynamics and their mechanics will adapt to the particular features of each market. Initially, the units made in Puebla will cover the local demand and later the export demand.
“The idea is to enter the nearby markets in the medium term, especially the northern part of South America, such as Ecuador and Colombia, as well as the Caribbean. Once we are consolidated in the region, we plan to enter the North American market,” said de la Vega, who pointed out that this last phase of the project will require a capacity expansion. “The United States and Canada are markets that, due to their size, demand very large volumes.”
The new plant is the second in the state dedicated to manufacturing last-mile vehicles. The other belongs to the Mexican brand Zacua, which last year turned towards delivery vehicles, amidst the boom in the delivery of goods.
Local content
De la Vega explained that one of the reasons that prompted the company to set up shop in Puebla is the state’s supplier base, since the plan is to have vehicles with a high content of local components.
“An important part of the brakes and suspension is of local content. The chassis and bodywork are also made in Mexico…The project will go through different phases and we plan to only import the powertrain or the battery, the electric motor and the control systems from China in the future,” he added.
Link has already had meetings with potential clients in Mexico. “We did not expect such an immediate interest in orders. I would have thought that this transition would take more time and effort, but we have found ourselves with a market that is more open to new technologies”, de la Vega concluded.
Link to the story: Citizens invertirá 250 mdd en una planta de vehículos eléctricos en Puebla (expansion.mx)