GM Mexico's CEO Thinks The Country Will Miss Its 2030 Electric Car Target

General Motors (NYSE:GM) Mexico President Francisco Garza claimed on Wednesday that just 15% of vehicles produced in the country in 2030 will be electric, falling short of the government's objective.

Garza told Reuters that electric-vehicle (EV) production could reach 30 percent due to falling prices, government incentives, and the expansion of charging station availability.

GM is already in negotiations with the municipal, state, and federal governments of Mexico to increase production of electric vehicles, according to Garza.

President Andres Manuel Lopez Obrador and other officials have frequently declared that Mexico is on track to meet or exceed its goal of electrifying fifty percent of its automotive production by 2030.

Wednesday, Garza claimed that the government's official goal was to achieve 30 percent of output by 2030. A representative of the Mexican Automotive Industry Association (AMIA) told Reuters that the goal was 30 to 50 percent.

According to Garza, General Motors is already in the process of converting production at its Ramos Arizpe factory in Coahuila to electric vehicles and aims to produce only electric vehicles at all three of its Mexican facilities by 2035.

Mexico's foreign minister, Marcelo Ebrard, has similarly set a goal of a 50% market share for EVs by 2030. As an example, he cited California's mandate that all new vehicles sold by 2035 must be electric or plug-in hybrid electrics.

"The (government) has pledged to provide public policies for the electrification of automobiles by the beginning of next year," said Garza.

Once the regulations are published, Garza said, "We'll have a better idea of what the actual amount that can be sold through 2030 will be, and ideally it will be greater than the 15% estimate."