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Fuel economy in Mexico

Part of Global Fuel Economy Initiative 2021

In 2019, light-duty vehicle (LDV) sales were just over 1.3 million in Mexico, down from 1.6 million in 2016. Average LDV fuel consumption fell from 9.1 litres gasoline equivalent per 100 kilometres (Lge/100 km) in 2005 to 7.6 Lge/100 km in 2019, 6% above the global average. Fuel economy improvements over this time period represent a 1.3% average annual decrease in fuel consumption. Reductions in fuel consumption occurred across all vehicle segments from 2005 to 2017, though there was a slight increase in fuel consumption in the medium, city and small SUV/pick-up segments between 2017 and 2019.

SUVs made up 38% of LDV sales in 2019, followed by city cars at 34% and medium cars at 21% (down from 31% in 2005). A relatively larger share of smaller vehicles keeps the average weight of LDVs in Mexico 7% below the global average at 1 379 kg in 2019. While the LDV market in Mexico remains dominated by gasoline powertrains, shares of hybrid and plug-in vehicles are growing. Hybrid vehicles have grown to a sales share of just 1% in 2019. Electric and plug-in vehicles have yet to meaningfully penetrate the Mexican LDV market.

In 2013, the government adopted fuel economy regulations similar to the US Corporate Average Fuel Economy (CAFE) standards, although with less ambitious targets and more flexibility for auto manufacturers and importers. The target for model year 2016 was 135.7 CO2 g/km for vehicles with a footprint below 3.81 m2, and 180.1 CO2 g/km for vehicles with a footrpint above 5.20 m2. In 2018, standards were updated, requiring a 15% improvement by 2020 and 35% by 2025 from 2016 levels for passenger LDVs. The Federal Law on New Automobiles Taxation in Mexico exempts battery electric and hybrid vehicles from sales and import fees.