This article is written by Ernesto Mendoza
Mexico is making significant strides in the electric vehicle (EV) market under the leadership of President Claudia Sheinbaum. 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, prompting 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. The goal is to create a robust supply chain within Mexico, minimizing imports and boosting local manufacturing capabilities.
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, which will significantly enhance its production capacity.
Key Statistics
- Projected Market Size: The revenue in the Electric Vehicles market in Mexico is projected to reach $34.8 billion in 2024.
- Market Growth: The market is expected to 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 are expected to 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 is expected to significantly boost local manufacturing and reduce reliance on imports.
As Mexico accelerates its efforts to establish itself as a leader in the EV industry, its commitment to affordable and sustainable transportation becomes evident. The ambitious initiatives and collaborations with global giants like BYD will not only bolster the economy but also pave the way for a cleaner, greener future. The Olinia project exemplifies Mexico’s dedication to innovation, local development, and the democratization of electric mobility.
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