The manufacturer of electric commercial vehicles announced an investment of 265 million dollars to build an assembly plant in Puebla.

TZUARA DE LUNA

11.02.2022 

 

With the automotive sector shifting towards electrification, this scenario is for Link EV an opportunity to promote greater investments in Mexico, as the industry is developing.

“From an economic point of view, this transition is going to bring a lot of opportunities for Mexico, because the country is going to have to develop infrastructure for electric power, and set up new factories to assemble electric vehicles,” said Sergio de la Vega, CEO of the firm.

These investments will come with the creation of jobs. Once, the shift towards electrification in the automotive sector was conceived mostly as a measure in favor of the environment; it is today a business opportunity too.

“This is going to create a very significant number of jobs. I don’t have a real estimate of how many, as it is a new industry, a new wealth and a new source of jobs…The first incentive was environmental, but today it is economic,” he said in an interview with MILENIO.

Last month, the manufacturer of electric commercial vehicles announced an investment of 265 million dollars to build an assembly plant in Puebla, which is expected to begin operating early in 2023.

De la Vega highlighted that Mexico has a window of opportunity for investment due to its robust value chain focused on the automotive sector, as well as its strategic geographic position.

In addition, and regarding the bottlenecks in supply chains worldwide, together with the shortage of semiconductors and their impact on the automotive production, he believes that Mexico could also find an opportunity here.

“This is business. And if it is not, we must incentivize it. Within a year the number of charging units in Mexico, whether in shopping malls or service stations, will grow by at least 100 %, and up to 500 %… Capital seeks more capital and to create more wealth, which will be generated there,” he added.

According to the latest data from the National Institute of Statistics (Inegi), the sale of hybrid and electric vehicles in Mexico totaled 3,775 units in November, which compared to the same month a year earlier, results in an increase of 57.2 %.

From January to November, the aggregated amount totals 42,969 units sold, which means a year-on-year increase of 105.8 %.

Link to the story: 

https://www.milenio.com/negocios/electromovilidad-traera-inversion-mexico-link-ev