Mexico’s New President Has A Plan: A Cheap Mexican EV For The Masses Called “Olinia”

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Claudia Sheinbaum, Mexico’s new president (inaugurated in October 1^st), has a plan. She needs to carry Mexico’s business into the 21^st century, pivoting to tech, drones, semi-conductors, … and EVs. She has introduced she’ll be sure that, by the top of her time period, Mexico owns a regionally designed, regionally constructed, inexpensive EV that might be named “Olinia” — Olin is Náhuatl for “movement.” As such, it’s solely pure that probably the most Mexican automobile ever must 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 quick time it has by no means produced a proprietary Mexican model. Sheinbaum’s plan is to verify it will get one, and by making it electrical she is going to guarantee it belongs to the longer term as an alternative of the previous.

Olinia

To be honest, such plans of greatness are widespread in Latin America, and so they not often find yourself effectively. Bolivia’s state-promoted “Quantum” quadrycicle, for instance, has solely bought token quantities regardless of its growth 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 business with nascent EV manufacturing (as we talked about in our LatAm EV Manufacturing Report), robust provide chains, inexpensive power, and an informed inhabitants.

The proposed title for the automobile (and an eventual Mexican model) comes from the Náhuatl language: the unique tongue of the Mexican (also referred to as Aztecs) that inhabited the Central Mexican Plateau on the time of Cortés’s arrival. As such, it’s imagined to be an emblem 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, nevertheless it speaks volumes to the main focus the brand new Mexican authorities could 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 longer term.

Mexico’s upcoming coverage modifications

Olinia isn’t coming alone. Sheinbaum can be proposing an overarching coverage aimed for the industries of the longer term, together with semiconductors and lithium extraction and refinement.

Extra vital, 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 might be allowed to import EVs with out tariffs … and this doesn’t embrace China.

My tackle that is that Sheinbaum is severe. Mexico isn’t the US, and it has been greater than clear than it’s going to gladly approve and obtain Chinese language funding within the type of native factories. Sheinbaum now needs 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 top of 2024.

It might be that Olinia — as at the moment proposed — by no means involves life, however, within the meantime, Mexico is more likely to change into an enormous participant within the EV panorama, and it might even construct its first-ever native model. In any case, what’s Japan with out Toyota? What’s Korea with out Hyundai/Kia? Who is aware of, maybe twenty years from now Olinia (or its successor) might be a well-positioned title worldwide.