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Home FEATURED

Electric Fleets in Mexico: An Emerging Transition

Currently, in the logistics and transportation sector, this transition has gained the most momentum among companies engaged in last-mile delivery operations.

T21 Media by T21 Media
4 September, 2024
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PLAYA DEL CARMEN, Q. ROO.- A constant for companies in Mexico that own a cargo fleet and are interested in making the change to “greener” units are the issues of costs and the lack of recharging infrastructure .

This was expressed by attendees at the opening of the 2024 edition of Top Flotillas and LOGEX , when Jorge Jiménez, EV Client Success Lead of Element Fleet , asked about the challenges they currently face in making this transition from units that use fossil fuels to electric or hybrid vehicles.

Most of these attendees are decision makers in matters of purchasing and fleet management in their companies. They have all met in this Caribbean resort to participate in Top Flotillas and LOGEX to engage in one-on-one business meetings with supplier companies, with whom they hope to integrate innovative solutions into their productive activities.

Jorge Jiménez explained that the transport sector is currently responsible for generating at least 17% of the emissions of polluting gases released into the atmosphere, which gives it a high level of responsibility in the search to reduce this impact on the environment.

For now, within the logistics and transportation sector, this transition has been given with a greater push by companies that carry out last-mile product delivery operations , i.e. parcel companies and large package generators in e-commerce, since they have reached a “parity” between the investment in vehicles and the cost of the operation, which even generates profitability for some.

For Element Fleet, a fleet management company, this last mile market already represents 50% of its business, according to Jiménez. The company currently has 140,000 units leased, mainly compact and medium-sized vehicles and, to a lesser extent, heavy units.

Market demand for electric or hybrid units has forced Element Fleet to incorporate up to 40 of these models into its available portfolio, out of the nearly 80 that automakers offer in the country.

“The transition to electric vehicles means supporting our customers from start to finish , always taking into account operational efficiency and energy security,” said Jorge Jiménez, during his participation in the inauguration of Top Flotillas and LOGEX.

The parity that the specialist speaks of is influenced by the reduction in the cost of maintenance of electric and hybrid units , since they have fewer auto parts than an internal combustion unit, which generates savings for companies with large fleets; “in addition to the fact that electricity is subsidized in Mexico,” said Jiménez.

However, the “elephant to conquer” here is the charging infrastructure. In Mexico, there are only three thousand chargers already installed and 80% of them are in private areas.

In addition, a challenge for companies with a charging fleet that are considering incorporating this new technology is the time it takes for suppliers to install the entire charging infrastructure in their operating centers; at least for heavy units, the average time is six or seven months.

“Nobody plans with these times in mind,” Jiménez said. For this reason, he said that the modality that is having the greatest success in this “green” trend is the leasing of units, with the help of companies that support the transition, calculating costs and reviewing issues of incorporation of new electrical infrastructure.

During the first seven months of this year, sales of electric, plug-in and non-plug-in vehicles in Mexico have registered an annual growth of 80%, totaling 65,232 units , according to data from the National Institute of Statistics and Geography (Inegi) .

Comment and follow us on X:@EnriqueDuRio / @GrupoT21

Tags: ELECTRIC VEHICLESELEMENT FLEETLOGEXsustainable mobilityTOP FLEETS

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índice de Confianza del Transporte y Logística – Cuarto trimestre 2023 10 destinos de exportación de vehículos pesados 2023 Descubre el Top 10 de destinos de exportación de vehículos pesados en México en 2023 La venta de vehículos pesados rompe récord en 2023 5 marcas de camiones más vendidas