US Commits US$2 Billion to EV Subsidies: Automotive Week

In this week’s automotive news, the United States invests US$2 billion in EV subsidies, while the EU imposes tariffs on Chinese EVs. Additionally, Mexico and the US are advancing automotive collaboration, while luxury car sales in the United States have plummeted by 46%.

Fasten your seatbelt! This is the week in automotive!

Experts Highlight Challenges for Mexico's National EV Olinia

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.

US Luxury Car Sales Fall 46% in 2024

Sales of luxury vehicles priced over US$100,000 have decreased by 46% in the US this year, according to a report from CarGurus, an automotive research and shopping company based in Boston. Consumers appear to be opting for more affordable and reliable vehicles without the luxury price tag, data shows.

OXXO Gas, SICT Partner to Build Safe Highway Rest Stops

OXXO Gas is launching a project to develop safe highway rest stops for transport operators in collaboration with the Ministry of Infrastructure, Communications, and Transportation (SICT). The first site is currently under construction in Majalca, Chihuahua, with plans to expand the network to additional locations across the country in the coming years.

Nvidia CEO Claims 'Insane' Demand for AI Chips

On Thursday, Nvidia's stock (NVDA) climbed nearly 3%, contributing to a year-to-date increase of over 150%. The company announced that it shipped samples of its new AI chip, Blackwell, to customers during the second quarter, with significant production growth anticipated in the fourth quarter of fiscal year 2026. CEO Jensen Huang reported an "insane" level of demand for Blackwell, which is now in full-scale production, as clients rush to secure their market position.

EU Pushes Chinese EV Tariffs Through After Divided Vote

The European Union (EU) has advanced plans to impose higher tariffs on electric vehicles (EVs) imported from China, a decision that has sparked significant internal disagreements among member states and drawn strong reactions from Beijing.

Mexico, US Unveil Automotive Industry Memorandums, Guidelines

Mexico and the United States unveiled the "Memorandums and Recommendations for the Automotive Industry" during the High-Level Economic Dialogue (DEAN). This initiative was jointly led by Mexico's Ministries of Economy and Public Education, and the US Departments of State, Education, and Labor. The dialogue, held in June 2024, centered on advancing competency certification in the automotive sector.

Merging Automotive Technology With Energy Solutions

The Mexican automotive market is becoming increasingly crowded with a variety of new car offerings. This saturation reflects a broader trend seen in Central America, including countries like Chile, Costa Rica, and Panama. However, Mexican consumers are particularly discerning, driven by their proximity to the United States and higher per capita income. They are not merely looking for affordability; they demand a comprehensive value proposition that aligns with their specific needs and expectations.

US Allocates US$2 Billion for EV Subsidies in 2024

The US government has allocated over $2 billion in subsidies for electric vehicles in 2024 as part of its initiative to encourage the adoption of electric and hybrid cars. According to the Treasury Department, more than 300,000 tax credits have been issued since January 1, 2024, with over 250,000 credits applied to new EV purchases and around 50,000 for used models.