A Country With a Huge
Bicycle Manufacturing Experience

Mexico's Grupo Mercurio, a leading bicycle manufacturer, has invested $25 million in a new factory in San Luis Potosí. The new U.S. tariffs on Chinese-made bicycles make Mexico an attractive supplier, offering better cost, quality, and lead times. Grupo Mercurio is also expanding into international markets, including Europe, through a partnership with Querétaro. To qualify for duty-free entry under the United States-Mexico-Canada Agreement (USMCA), Mexico must meet the Rule of Origin requirements, ensuring 60% locally manufactured content.

Government Initiatives

Mexico takes sustainable transportation seriously with significant investments and favorable regulations. A $150 million investment in Mexico City aims to transform the transport system, prioritizing sustainable options like electric bicycle. This includes the development of bike lanes and charging stations, crucial for the growth of the e-bike industry. The government of Zapopan in Jalisco encourages sustainable transportation by providing credits for bicycle purchases. This initiative is part of their Efficient Mobility Plan, which aims to reduce CO2 emissions and promote well-being and environmental improvement.

Corporate Initiatives

Leading corporations, including BBVA, HSBC, and the Mexican Stock Exchange (BMV), are championing alternative transportation options for their employees. With a focus on reducing car usage and promoting sustainable modes of transport, these companies provide amenities like bike parking spaces, changing rooms, and electric scooters.

Together, these corporations, with over 13,000 employees in their Reforma offices, aim to achieve four key objectives: a 20% reduction in car use and a 30% decrease in carbon dioxide emissions, subsidies for public transportation, and doubling bicycle usage in the financial corridor. This initiative is gaining momentum, attracting more companies to participate. While it requires a cultural shift, the overall feedback has been positive, showcasing the potential for change.

Consumer Awareness

Mexican consumers are becoming increasingly aware of the environmental benefits of e-bikes. This trend is reflected in the growing popularity of bike-sharing programs like EcoBici in Mexico City.

The number of complete monthly trips on EcoBici’s electric bikes has been steadily increasing, indicating a growing acceptance of e-bikes as a viable mode of transportation.

Emerging Opportunities

Exciting opportunities are arising to drive the e-bike industry in Mexico. Cargo bikes are emerging as a solution for last-mile delivery, addressing traffic congestion and limited parking space challenges. Significant players like UPS and Mexican startup Zinco have partnered to implement cargo bike delivery in Mexico City and beyond. Customer satisfaction with this mode of delivery is high, as 8 out of 10 consumers prefer it. The cargo bike market in Mexico is fueled by a young customer base, providing ample growth prospects.

The demand for delivery services is on the rise, with a 6% annual increase in motorcycle sales in Mexico in 2020. Home deliveries and the need for cost-effective transportation options present opportunities for the electric bicycle industry. The growing trend of motorcycle sales indicates a promising market for e-bikes, aligning with the shift in consumer behavior.

In sustainable tourism, e-bikes are gaining popularity as they enable tourists to explore diverse terrain and scenic routes. Mexico's unique landscape and sustainable tourism growth make it an ideal destination for e-bike experiences. Several companies are already offering e-bike tours and services, contributing to the estimated market value of US $34.22 million in sustainable tourism by 2023.

In conclusion, Mexico presents a promising landscape for producing and selling electric bicycles. The combination of government support, increasing consumer awareness, strategic location, and emerging opportunities make it an attractive destination for e-bike manufacturers. As the country continues to embrace sustainable transportation, the e-bike industry is set to thrive in the coming years.

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