This article is written by Ernesto Mendoza
New EV on the Street
Mexico is making significant strides in the electric vehicle (EV) market under the leadership of President Claudia Sheinbaum. Specifically, the country is set to produce its own affordable EVs, dubbed “Olinia,” aiming to reduce reliance on imports from China and India. This initiative follows Tesla’s pause on plans for a Gigafactory in Mexico, which has prompted the government to focus on bolstering domestic production.
President Sheinbaum has announced the development of the locally-made EV, Olinia, which is expected to challenge the dominance of Chinese and Indian EVs in the Mexican market. In other words, the goal is to create a robust supply chain within Mexico, minimizing imports and boosting local manufacturing capabilities.
What does this mean?
Meanwhile, in addition to the government’s efforts, Chinese electric carmaker BYD is ramping up its presence in Mexico. BYD aims to sell 50,000 EVs in Mexico this year and plans to double that number by 2025. The company is also poised to announce the location of its first factory in Mexico.
Key Statistics
To provide a clearer picture, here are some key statistics:
- Projected Market Size: The revenue in the Electric Vehicles market in Mexico will likely reach $34.8 billion in 2024.
- Market Growth: The market will experience a steady annual growth rate (CAGR) of 8.97%, leading to a projected market volume of $53.4 billion by 2029.
- Unit Sales: The unit sales of Electric Vehicles in Mexico is will likely reach 56,770 vehicles by 2029.
- BYD’s Target: BYD aims to sell 100,000 EVs in Mexico by 2025.
- Olinia’s Impact: The introduction of Olinia may significantly boost local manufacturing and reduce reliance on imports.
A new Leader
Mexico accelerates its efforts to establish itself as a leader in the EV industry. Its promise to be affordable and sustainable transportation becomes evident. The ambitious initiatives and collaborations with global giants like BYD will bolster the economy. The Olinia project exemplifies Mexico’s dedication to innovation, local development, and the democratization of electric mobility.
