Mexico’s New President Has A Plan: A Low cost Mexican EV For The Plenty Known as “Olinia”

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Claudia Sheinbaum, Mexico’s new president (inaugurated in October 1^st), has a plan. She desires to convey Mexico’s business into the 21^st century, pivoting to tech, drones, semi-conductors, … and EVs. She has introduced she’ll ensure that, by the top of her time period, Mexico owns a regionally designed, regionally constructed, reasonably priced EV that can be named “Olinia” — Olini is Náhuatl for “motion.” As such, it’s solely pure that probably the most Mexican automotive 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 long run as a substitute of the previous.

Olinia

To be honest, such plans of greatness are frequent in Latin America, and so they not often find yourself nicely. Bolivia’s state-promoted “Quantum” quadrycicle, for instance, has solely bought 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 business with nascent EV manufacturing (as we talked about in our LatAm EV Manufacturing Report), robust provide chains, reasonably priced vitality, 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 (also called Aztecs) that inhabited the Central Mexican Plateau on the time of Cortés’s arrival. As such, it’s purported 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 long run.

Mexico’s upcoming coverage modifications

Olinia just isn’t 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, nonetheless, 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 embody China.

My tackle that is that Sheinbaum is critical. Mexico just isn’t the US, and it has been greater than clear than it can 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 unit in Mexico earlier than the top of 2024.

It might be that Olinia — as at present 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 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) can be a well-positioned identify worldwide.