Mexico City among leaders in mobility trends
This was stated to Notimex by the managing director Senior Advisor of Julius Baer, Norbert Ruecker, who stressed that the country's capital faces enormous challenges such as congestion and pollution, which translates into insufficient mobility that slows growth below economic potential.
"For me, it was surprising to realize that, on average, Mexico City has a much higher density of cars (automobiles per capita) compared to Asian cities."
However, through mobility options such as shared bicycles and electric scooters, bus travel services, or the arrival of electric buses, Mexico City seems to be among the leading group of cities in terms of mobility trends.
The expert who is part of the Swiss group focused on wealth management said that, globally, China is at the forefront in terms of electric mobility, because for every second it has an electric car sold worldwide.
"There are obvious reasons. China sees electric cars as a key technology for the future and, as a result, offers broad support to the market and industry. Meanwhile, today electric cars are mainly in the most expensive premium segment."
Therefore, market share in emerging economies is lower than in developed economies; coupled with the fact that multifamily dwellings instead of single-family homes, or underdeveloped power grids are other reasons.
Emerging economies often lack the means to offer financial subsidies to boost sales of electric cars and, in the case of Mexico, an additional factor that discourages the use of electric cars are low fuel costs. In this sense, there is no single solution for all countries for the adoption of electric cars, but each country and city needs to find an individual approach that matches their economic, infrastructure and cultural conditions.
Electric cars will be available slowly at reasonable prices in the compact and lower segment. Instead, shared transportation solutions seem to offer opportunities to offer clean and less congested mobility. Autonomous driving is probably still a very distant vision since it needs expensive and well-maintained roads for the sensors and software to work perfectly. The government should simply enable an environment where business flourishes, open to innovation and new ideas, instead of protecting the status quo and its beneficiaries. The main challenge is to keep the law updated with changes in technology and society.
The automotive business has to adapt and the big challenge is not electric cars, but the likely shift towards mobility services. The new competition comes from outside and from within the business. Electric cars have already reduced barriers to entry, while the change in technology to electric motors, batteries, sensors, and software requires significant capital investments to maintain up-to-date manufacturing and the offer of new products.