In August 2022, Banorte launched a new loan product with preferential conditions for Mexican consumers looking to purchase a new or used hybrid or electric vehicle (EV). Interest rates for the new product start at around 10% lower than the starting rate for fossil fuel powered cars. It also offers a 60% discount on the origination fees and reduced insurance rates.
During the first half of 2024, more than 2,300 green auto loans have been placed, contributing to lowering the country’s emissions.
The supply of hybrid and electric vehicles in Mexico has significantly expanded. Three years ago, the options available for consumers were limited to a few manufacturers offering only premium vehicles. Today, there are multiple brands offering more affordable models with prices starting at ~USD 20,000 for a compact EV. Demand for the product is supported by government policies. Owners of hybrid and electric cars are exempt from taxes on new cars and the Mandatory Vehicle Verification Program operating in some parts of the country.
Read more on Banorte’s net-zero targets here.
This case study was originally published in the Net-Zero Banking Alliance 2024 Progress Report (October 2024).
Disclaimer: NZBA shares case studies to promote member banks’ awareness of new approaches, tools, products, services, and transactions related to financing the transition to net zero. Featuring a case study naming a particular bank does not represent an endorsement of all actions from that bank.