Mexico’s New President Has A Plan: A Low-cost Mexican EV For The Lots Referred to as “Olinia”

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Claudia Sheinbaum, Mexico’s new president (inaugurated in October 1^st), has a plan. She desires to carry Mexico’s trade into the 21^st century, pivoting to tech, drones, semi-conductors, … and EVs. She has introduced she’ll be sure that, by the tip of her time period, Mexico owns a domestically designed, domestically constructed, inexpensive EV that can be named “Olinia” — Olini is Náhuatl for “motion.” As such, it’s solely pure that essentially the most Mexican automotive ever ought to be named after this phrase.

Mexico has been an automotive producer for many years, however, numbers-wise, it solely turned a powerhouse within the final decade or so: in such brief time it has by no means produced a proprietary Mexican model. Sheinbaum’s plan is to ensure it will get one, and by making it electrical she is going to guarantee it belongs to the long run as a substitute of the previous.

Olinia

To be truthful, such plans of greatness are frequent in Latin America, they usually hardly ever find yourself nicely. Bolivia’s state-promoted “Quantum” quadrycicle, for instance, has solely offered token quantities regardless of its enlargement within the area.

But when there’s one nation within the area that may pull this off, it’s Mexico. The nation has a developed automotive trade with nascent EV manufacturing (as we talked about in our LatAm EV Manufacturing Report), sturdy provide chains, inexpensive power, and an informed inhabitants.

The proposed identify for the automotive (and an eventual Mexican model) comes from the Náhuatl language: the unique tongue of the Mexicas (often known as Aztecs) that inhabited the Central Mexican Plateau on the time of Cortés’s arrival. As such, it’s imagined to be a logo of Mexico’s resurgence as a regional energy and a cornerstone for the independence and sovereignty of its nation.

Olinia is only a idea for now, but it surely speaks volumes to the main focus the brand new Mexican authorities can have. Mexico’s prior president — Andrés Manuel López Obrador “AMLO” — was not too invested in EVs, however Sheinbaum clearly has her priorities clear, and it’s set on making Mexico an enormous participant within the mobility of the long run.

Mexico’s upcoming coverage modifications

Olinia is just not coming alone. Sheinbaum can be proposing an overarching coverage aimed for the industries of the long run, together with semiconductors and lithium extraction and refinement.

Extra necessary, nevertheless, are commerce insurance policies. Since 2020, Mexico had exempted EVs from any tariffs and import taxes, however that is ending this month. Now, solely international locations which have signed FTA with Mexico can be allowed to import EVs with out tariffs … and this doesn’t embrace China.

My tackle that is that Sheinbaum is critical. Mexico is just not the US, and it has been greater than clear than it is going to gladly approve and obtain Chinese language funding within the type of native factories. Sheinbaum now desires to hurry up that course of. It additionally appears to be working: BYD is now poised to announce its upcoming manufacturing facility in Mexico earlier than the tip of 2024.

It might be that Olinia — as presently proposed — by no means involves life, however, within the meantime, Mexico is prone to develop into an enormous participant within the EV panorama, and it could even construct its first-ever native model. In spite of everything, what’s Japan with out Toyota? What’s Korea with out Hyundai/Kia? Who is aware of, maybe 20 years from now Olinia (or its successor) can be a well-positioned identify worldwide.