Summary
- Claudia Sheinbaum, Mexico’s new president, plans to bring Mexico’s industry into the 21st century by focusing on tech, drones, semi-conductors, and EVs
- She aims to have Mexico own a locally designed, locally built, affordable EV named "Olinia" by the end of her term
- Mexico has a developed automotive industry with nascent EV production, strong supply chains, affordable energy, and an educated population
- Sheinbaum is proposing an overarching policy for industries of the future, including semiconductors and lithium extraction and refinement
- Mexico has exempted EVs from tariffs and import taxes since 2020, but this is ending soon, with Olinia potentially becoming a major player in the EV landscape
Article
Mexico’s newly inaugurated president, Claudia Sheinbaum, has announced a plan to bring the country’s industry into the 21st century, focusing on technology, drones, semi-conductors, and electric vehicles (EVs). She aims to have a locally designed and built affordable EV named “Olinia” by the end of her term, symbolizing movement in Náhuatl, the original language of the Aztecs. While Latin America has seen similar ambitious plans before, Mexico’s developed automotive industry and supply chains, along with affordable energy and educated population, make it a strong candidate to succeed.
The idea of Olinia is part of a larger policy shift in Mexico towards future industries such as semiconductors and lithium extraction and refinement. Trade policies are also changing, with tariffs and import taxes on EVs being reinstated for countries without a free trade agreement with Mexico. This move excludes China, a major player in the EV market. Despite this, Mexico is open to Chinese investment in establishing local factories, with BYD expected to announce a factory in Mexico by 2024. Sheinbaum’s focus on these policies signals a serious intent to position Mexico as a significant player in the EV landscape.
While the concept of Olinia may or may not come to fruition, Mexico’s shift towards becoming a prominent player in the EV market is evident. The country may even see the establishment of its first-ever local brand, akin to Toyota in Japan or Hyundai/Kia in Korea. This development aligns with Sheinbaum’s goal of making Mexico a key player in the future of mobility. The ambition behind Olinia signifies a larger strategy to propel Mexico’s automotive industry into the future, potentially establishing a strong presence on the global stage.
Mexico’s previous president, Andrés Manuel López Obrador, was less focused on EVs, but Sheinbaum’s clear priorities indicate a shift towards embracing electric mobility. By promoting a locally designed and built EV, Mexico aims to position itself as a leader in the automotive industry. The country’s history of automotive production combined with its potential for future growth in the EV sector sets the stage for Mexico to carve out a significant role in the global market. Sheinbaum’s vision for Olinia and the broader policy changes reflect a strategic effort to shape Mexico’s position in the evolving automotive landscape.
As Mexico moves towards becoming a major player in the EV market, the potential for Olinia or a successor to emerge as a recognizable brand worldwide is within reach. With a strong foundation in automotive production and a focus on future industries, Mexico has the necessary elements to establish a prominent presence in the electric vehicle sector. Sheinbaum’s dedication to advancing Mexico’s role in the mobility of the future demonstrates a commitment to innovation and growth in the automotive industry. The evolution of Olinia and Mexico’s automotive landscape could shape the country’s future as a key player in the global market.
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