MEXICO CITY, April 20 (Reuters) – Carmaker MG Motor is launching a plug-in hybrid SUV in Mexico, the company announced on Thursday, as the market for hybrid and electric vehicles in the Latin American country heats up despite a lack of infrastructure and high costs for locals.
MG Motor's hybrid eHS model is set to hit Mexico's streets on Friday, alongside two combustion-engine models, the company said.
MG Motor, a formerly British brand now owned by China's SAIC Motor (600104.SS), opened shop in Mexico in 2020, and says it is looking to claim 5.5% of the country's market share this year.
Mexico is looking to bump up its EV production even as the cars are too expensive for most Mexicans and impractical to drive in much of the country, a Reuters analysis found.
Mexico has about 1,100 charging stations nationwide, mostly clustered in large cities, restricting EV use for long-distance drives.
However, hybrid models could be a step forward until there is more EV investment, analysts have said.
“For your day-to-day, you'll have the benefits of an electric vehicle,” Daniel Nava, vice president of MG Motor in Mexico, told Reuters ahead of the announcement.
“But you also won't be limited (for longer trips), because you can also use gasoline,” he added.
MG Motor's eHS model will sell in Mexico for 825,000 pesos ($45,610.85), which is 36% to 49% more expensive than the price range in Spain, though less than the model's expected price in India.
Around 80% of Mexicans earn less than 25,000 pesos ($1,385.19) a month, according to the country's statistics agency.
Nava said the price in Mexico reflects that the model is a plug-in hybrid, which is more costly than other hybrid models, and is comparable to competitors' prices. He added that other countries, particularly in Europe, offer incentives for hybrid purchases.
This comes as Mexico, a major carmaking hub, looks to convert half of its auto production to zero-emission vehicles by 2030. In March, it nabbed a $5 billion Tesla plant in the northern state of Nuevo Leon.
Nava said MG Motor had been in touch with officials in Nuevo Leon as well as other states as it considered building a plant in the country.
($1 = 18.0878 Mexican pesos)
Reporting by Kylie Madry in Mexico City Editing by Matthew Lewis
Kylie MadryThomson Reuters
Kylie Madry is a headline news reporter covering business, politics and breaking news for all of Latin America. She's based out of the Reuters office in Mexico City, where she was previously a freelance journalist and translator working on award-winning podcasts, books about Mexico's drug lords and stories ranging from the fight for clean water to the millions spent on the city's surveillance system. Kylie is originally from Dallas, Texas.
Keyword: MG Motor launches plug-in hybrid option in Mexico as EV race heats up