Mexico has unveiled the prototype of Olinia, the country’s first domestically developed electric vehicle brand, marking a significant step in its efforts to establish a homegrown electric mobility industry.
The first model, known as the Olinia Uno, is a compact urban electric vehicle designed for affordable city transportation. Commercial production is scheduled to begin in 2027.
Affordable Urban Electric Vehicle
The Olinia Uno is expected to start at 150,000 Mexican pesos (approximately €7,500), positioning it among the most affordable electric vehicles in the market.
The vehicle is equipped with a 14.7 kWh battery pack, offering a driving range of 125 kilometres and a maximum speed of 50 km/h. According to project data, operating costs are estimated at 0.49 pesos per kilometre.
Designed primarily for urban mobility, the vehicle can accommodate up to six passengers and incorporates accessibility features for wheelchair users.
Charging is supported through standard household electrical outlets, although project details have not yet confirmed compatibility with conventional AC charging systems such as Type 2 connectors.
Charging Network Expansion Planned
Alongside vehicle development, Mexico is preparing supporting charging infrastructure to encourage adoption.
According to Mexico Business, the initial phase of the program includes the installation of 2,000 charging points across Mexico City, the State of Mexico and Puebla.
The charging network is expected to support private vehicle adoption as well as the electrification of public transportation fleets, including taxi services.
Production Facility Scheduled for 2026
Construction of Olinia’s manufacturing facility is expected to begin between August and September 2026.
The plant will initially have annual production capacity of 20,000 vehicles. Mexico aims to expand output to 50,000 units within four years and eventually reach production levels of up to 100,000 vehicles annually.
Building a Domestic EV Supply Chain
A key objective of the project is the development of a localized supply chain.
Olinia is expected to launch with approximately 50% domestic content integration, with plans to increase local sourcing to 75% by 2030 as Mexican suppliers expand their capabilities.
The initiative reflects Mexico’s broader strategy of moving beyond its traditional role as an export-oriented vehicle manufacturing hub toward a more vertically integrated automotive industry with domestic engineering, research and production capabilities.
Government-Led Development Effort
Mexico first announced plans for a national electric vehicle program in January 2025.
The project is being coordinated by the Ministry of Science, Humanities, Technology and Innovation (SECIHTI), which selected the National Polytechnic Institute (IPN) and the National Technological Institute of Mexico (TecNM) to lead vehicle development.
More than 80 researchers have contributed to the engineering center in Puebla, which is expected to evolve into a regional hub for electric mobility, artificial intelligence and clean energy technologies.
Funding and Regulatory Support
The Olinia brand will operate under a mixed public-private ownership structure and is currently seeking 200 million Mexican pesos (approximately €9.95 million) in private investment to support the transition from prototype development to commercial production.
The Mexican government is also preparing a new regulatory framework specifically for low- and medium-speed urban electric vehicles to address gaps in existing transportation legislation.
In parallel, the country’s battery strategy includes plans for second-life battery applications, allowing used EV battery packs to be repurposed for residential energy storage before eventual recycling in the state of Sonora.
The Olinia initiative represents one of Mexico’s most ambitious efforts to establish domestic capabilities in electric vehicle development and manufacturing while supporting broader goals related to industrial development, clean transportation and energy transition.
Source: mexicobusiness.news
