Market Research Report
Mexico Electric Bus Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||625915|
|Published||Content info||60 Pages
Delivery time: 2-3 business days
|Mexico Electric Bus Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: June 1, 2019||Content info: 60 Pages||
The Mexican electric bus market is expected to register a CAGR of around 25% during the forecast period, 2019-2024.
The electrification of the transportation sector has been critical in tackling the climate change that is predominant in the country. According to the International Energy Agency (IEA), in order to limit the average temperature rise to 2°C, reducing the country's carbon footprint from the transport sector, which is responsible for 22% of yearly emissions, is expected to be critical for Mexico to meet its climate goals. The enactment of stringent emission standards across the country and upcoming launches by manufacturers are likely to drive more electric vehicle sales during the forecast period.
As of now, the majority of the charging stations within the country are of plug-in type, however, with the growing number of electric buses, the overhead charging types are anticipated to increase during the forecast period, owing to the trend of developing interoperability of electric buses (i.e., electric bus accepting different types of charging methods or technologies). Companies, like BYD, Mercedes Benz, etc., have actively contributed to the launch of electric buses in the country. For instance, in 2018, Mercedes Benz launched full electric buses in the country and began training its domestic technicians to handle battery-related issues of the buses.
The Mexican electric bus market has been segmented by vehicle type, and consumer type.
Cost benefits offered by Electric Buses over the Long Run
Fuel constitutes a major part of the operating cost of any vehicle. With increasing fuel costs, using an electric bus for public transport is significantly cost-effective in the long run. Electric buses help reduce 81-83% of the maintenance and operating costs compared to a diesel engine bus. Electric buses offer more comfort to travelers when compared to gasoline or diesel buses and ensure that the NVH levels in electric buses are minimal. Also the limited vibrations during operation aids in extending the vehicle's life, in turn, reducing maintenance costs, and also offers comfort to passengers.
In 2016, along with Paris, Mexico City was one of the first cities to announce restrictions for diesel ICEs as soon as 2025 under the C40 fossil fuel free streets declaration. The country also aims for zero-emission buses from 2025 and zero-emissions in major areas of the cities by 2030 also in accordance with the C40 declaration. With the removal of older and non-efficient vehicles, owing to the enactment of stringent emission regulations over consistently increasing pollution implies that there would be a considerable growth for electric buses market over the forecast period.
High Growth anticipated for the Battery Electric Bus Segment
The Mexican electric bus market is going to experience a boom during the forecast period, as the market is one of the signatories of the C40 Cities Clean Bus Declaration of Intent, which is committed to having 42,649 low- and zero-emission buses in their fleets by 2020, which is expected to be over 25% of the 164,629 total buses for all signatory cities by 2020. The buses provide a range of around 200 km-300 km travel in one charge and are mostly used in the urban areas.
Mexico City plans to add a huge amount of battery electric buses to its fleet. Recently, the government ordered 100 battery electric buses from BYD, a Chinese manufacturer. In March 2017, a prototype of a public transit bus, which was originally powered by a diesel engine and then converted to a 100% electric vehicle, made its first test run before government officials and transportation companies in the Mexico City. All the aforementioned factors are expected to help the battery electric buses segment grow considerably.
The Mexican electric bus market is a consolidated one. The top global players account for most of the market share. The major companies in the electric bus market include Daimler, BYD, Yutong, Zhongtong Bus, and King Long. Local companies such as Advanced Power Vehicles are also tapping the market by converting IC buses to fully electric buses.