Mexico’s New President Has A Plan: A Low cost Mexican EV For The Lots Known 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 top of her time period, Mexico owns a domestically designed, domestically constructed, reasonably priced EV that will likely be named “Olinia” — Olini is Náhuatl for “motion.” As such, it’s solely pure that probably the most Mexican automobile ever needs 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 longer term as an alternative of the previous.

Olinia

To be honest, such plans of greatness are widespread in Latin America, they usually hardly ever find yourself properly. Bolivia’s state-promoted “Quantum” quadrycicle, for instance, has solely offered 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 trade with nascent EV manufacturing (as we talked about in our LatAm EV Manufacturing Report), robust provide chains, reasonably priced 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 Mexicas (often known as Aztecs) that inhabited the Central Mexican Plateau on the time of Cortés’s arrival. As such, it’s speculated 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, nevertheless it speaks volumes to the main target 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 longer term.

Mexico’s upcoming coverage adjustments

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

Extra essential, 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 nations which have signed FTA with Mexico will likely be allowed to import EVs with out tariffs … and this doesn’t embrace China.

My tackle that is that Sheinbaum is critical. Mexico shouldn’t be 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 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 turn out to be an enormous participant within the EV panorama, and it could 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 20 years from now Olinia (or its successor) will likely be a well-positioned title worldwide.