Tuesday, February 11, 2025

Mexico to make its own EV

This week, President Claudia Sheinbaum gave further details about her plans to produce an electric vehicle (EV) that is fully manufactured and assembled in Mexico. 

The president first mentioned the EV during her inaugural speech at Mexico City’s Zócalo on Oct. 1. “Mexicans have creativity, determination and capacity to spare. So, we will produce ‘Olinia,’ a small, 100% electric, accessible car, designed by young people and assembled in our country,” Sheinbaum said.

The project seeks to establish Mexico as a major car producer, a goal of the Technological Development Program for Innovation, one of Sheinbaum’s 100 commitments for her presidency.

Although the country has seen significant growth in the assembly of electric and hybrid vehicles, Mexico has yet to manufacture and export a domestically designed electric vehicle model.

Where will Olinia be manufactured?

During her morning press conference on Oct. 15, Sheinbaum said that Olinia could be produced in Sonora, one of several northern states with low electricity prices.  

After the announcement, Governor Alfonso Durazo Montaño thanked Sheinbaum on his official X account for considering Sonora as a potential production hub for Olinia.

In a follow-up comment, he emphasized Sonora’s suitability for EV production, citing the state’s promising potential to develop its clean energy sector.

Sheinbaum said on Tuesday that her government is considering the northern state of Sonora for the production of the EV Olinia. (Cuartoscuro)

“[Olinia] will represent an important step towards the transition to clean energy in Mexico,” Durazo stressed.

How much will it cost?

Olinia, which means “to move” in Nahuatl, will be designed as an affordable EV for Mexican families and young people, with competitive prices compared to other available brands.

It is expected to cost under 500,000 pesos (US $25,000), a price tag lower than that of EVs currently available in the national market, such as the SEV E-Wan Cross, the BYD Dolphin Mini and the Tesla Model 3.

Is Olinia Mexico’s first-ever EV? 

Although both Sheinbaum and Durazo said that Olinia would be Mexico’s first-ever EV, Olinia will be the second EV model to come out of Mexico. 

Zacua launched production of the first Mexican-made EV in 2018.
Zacua launched production of the first Mexican-made EV in 2018. (Cuartoscuro)

In 2018, Zacua launched its manufacturing plant in Puebla to produce two models of EVs: the Zacua MX2 and the MX3. Both are exempt from paying tenencia (ownership tax) and from verificación (a vehicle inspection only applicable in Mexico City). 

Zacua EVs can be bought in their Mexico City showroom or online. 

With reports from Meganoticias, El Sol de Hermosillo, NMas and El Universal

3 COMMENTS

  1. I think those other EVs mentioned are less than MEX$500k, but it might be a good move. I hope the Mexican government has policies in place to tie providing lower labor costs to technology transfer agreements, which is a major reason for the success of manufacturing in Asia, particularly China. Mexico is still a growing market for new cars, shares a border with an even bigger one, has a population of young people interested in science and engineering, and has a lot of resources. After a century of fits and starts of electric powered vehicles, this time it might be real.

  2. I know Tesla and the proposed Mexican EVs are “pure”, ie., not hybrids. Not sure about the BYD that’s going to be manufactured in Mexico. However, I’m not cognizant of the availability of charging stations in Mexico. I would expect DF would (should) have some but anywhere else? I’d be interested in hearing if anyone is aware of what is and planned to be available. The slow buildout of infrastructure is certainly a key roadblock (pun intended) to greater acceptance in the US and even if the expectation is for home charging, without 240V available (essentially all of Mexican residences) charging a pure EV is pretty slow and inefficient. I guess I just don’t get it!

    • That’s a good point about the voltage difference in the Americas vs Europe and Asia. It’s probably a major one of many reasons that EVs have a real market in those areas. Also, for those who aren’t already in the highest levels per kwh on CFE (the Mexican electricity utility) with aircon and or other electricity hogs, plugging an EV into the household might be the difference between bi-monthly bills for the equivalence of a few US dollars, and real money. If it looks like their is enough public support, I’d imagine the government would prioritize fast charging stations, for example adjacent to Pemex stations. If nothing else, government or big business fleets could become electric with their own charging stations.

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