© Reuters. FILE PHOTO: A man walks past the Audi logo during the opening of a new factory in San Jose Chiapa, in the state of Puebla, Mexico September 30, 2016. REUTERS/Imelda Medina
Written by Dina Beth Solomon and Dave Graham
MEXICO CITY (Reuters) – German automaker Audi is set to announce plans this month to begin production of electric vehicles in Mexico, according to three people familiar with the matter, joining other major automakers in ramping up electric vehicle production in Mexico.
Audi, a unit of Volkswagen (ETR:), has since 2016 built the Audi Q5, a compact SUV, in the Mexican state of Puebla, and later added a plug-in hybrid version.
Audi’s EV expansion plans are set to be announced on July 18 at its plant in San Jose Chiapa, Puebla, according to people familiar with the matter.
Senior management from Germany is expected to attend the event surrounding what is likely to be a significant investment, they said.
The state is also home to the Volkswagen auto plant, one of the largest auto factories in Mexico, and several suppliers of spare parts.
Mexican President Andres Manuel López Obrador said last month that more investments in Puebla’s auto industry are expected soon. It is not clear how much Audi plans to invest in.
The economy ministry of Ode and Puebla states did not respond to requests for comment. Volkswagen in Mexico declined to comment.
Both Audi and Volkswagen have set broad goals to boost electric vehicle production worldwide. Volkswagen said last year that it would invest more than $7 billion in the next five years in North America, including in electric vehicle production.
In Mexico, Volkswagen last year announced a $763 million investment to modernize its Puebla plant, including a new electric-powered paint department.
Last year, then-Mexico Foreign Minister Marcelo Ebrard said during a tour of Audi’s plant in Puebla that he was looking forward to more investment from the company as Mexico ramps up production of more eco-friendly cars.
Mexican officials and company executives discussed plans for growth at the plant, as well as an ongoing transition in the entire group to produce “only all-electric cars in the future,” Audi said in a statement at the time.
