Can Olinia Compete? Experts Weigh in on Mexican EV Market

The announcement of Mexico’s first national electric vehicle (EV), Olinia, has sparked curiosity among industry experts about the project’s future. Launched by President Claudia Sheinbaum as part of her administration’s strategy to boost Mexico's role in the global automotive and semiconductor markets, Olinia represents a step forward in the country’s shift to electromobility. However, industry leaders caution that the success of this initiative will depend on how it navigates critical market and infrastructure challenges.

“For a Mexican electric vehicle to compete, it must satisfy a specific need at a competitive price, with durability that places it on par with Asian and national cars,” said Salvador Portillo, President, National Chamber of Electrical Manufacturing (CANAME). He also highlighted that while the concept of Olinia is promising, much will depend on how it compares in terms of performance, reliability, and pricing with other alternatives in the market.

Portillo added that beyond competition with foreign automakers, Olinia must also offer a solution that resonates with Mexican consumers. "It is not just about competing in quality and price, but also delivering on the expectations of users when it comes to performance and reliability," he said. Olinia, according to him, must carve out a niche by addressing key challenges such as affordability and ease of use in a country where EV adoption remains relatively low.

A major hurdle for Olinia’s success, according to experts, will be the integration of EVs into Mexico’s existing infrastructure. Portillo emphasized the importance of ensuring the vehicle can easily access charging points across the country. “It is crucial that Olinia responds to a real need and is aligned with the development of technologies such as solar or wind energy. It must also comply with operability protocols to ensure it can be powered at existing charging stations,” said Portillo.

Lorenzo Ortego, Director General, Voltway, echoed the need for clarity in how the Olinia project will target the market. While he welcomed the government’s recognition of electromobility as a strategic priority, he stressed that success will depend on how well the vehicle fits the needs of a specific user base. “We have seen successful examples with buses, like those from Dina, which focused on the right market segment. But we need more information about the type of vehicle being developed for Olinia,” Ortego stated.

Ortego suggested that a small, urban-focused electric vehicle might be the most practical option for this kind of project, particularly given the experience levels of Mexico’s automotive industry. “Developing a larger vehicle with higher capacity would require a lot of experience in the industry. I think a small, urban vehicle could be more viable,” said Ortego.

In addition to the Olinia project, experts like Ortego are urging the government to consider the broader context of Mexico’s transportation needs. “Electrifying public transport should be a priority,” Ortego said, pointing to the potential benefits of continuing to electrify Metrobús lines in Mexico City.

However, Ortego also emphasized that the Olinia project offers an opportunity for Mexico to advance its automotive industry in a way that could go beyond vehicle assembly. "If this project succeeds, Mexico should aim not only to assemble vehicles but also to design and manufacture complete vehicles," he said.

Alongside the development of a national electric vehicle, the country is also looking to ramp up semiconductor production and exploit its lithium reserves for EV battery production. President Sheinbaum’s administration has made clear that local expertise and resources will be critical to these efforts.