Mexico’s government has launched Olinia, a new electric vehicle (EV) manufacturer backed by both state and private capital, aiming to produce affordable electric vehicles (EVs) by 2026. The initiative, which emphasizes regional production, is set to unveil its first model during the opening match of the 2026 FIFA World Cup in Mexico’s Aztec Stadium, with production slated to begin later that year.
The three planned Olinia models, ranging from 90,000 to 150,000 pesos (approximately 4,200 to 7,100 euros), are expected to be far more affordable than current electric vehicles in the Mexican market, where models from brands such as JAC, Renault, and BYD typically start at around 350,000 pesos. Olinia’s vehicles, which will be light electric vehicles, are expected to be cheaper to operate, offering lower CO2 emissions.
“The goal is to build a vehicle that is safe, electric, able to connect to any outlet, and with components largely produced in Mexico,” President Claudia Sheinbaum said, emphasizing the government’s commitment to fostering local production. “Little by little, we will build this production chain.”
In a departure from centralized manufacturing, the government plans to establish regional production plants. One production facility is expected to be located in the northwestern state of Sonora, with other potential sites in Yucatán. “If we can have an assembly plant in Yucatán and one in Sonora, it would be very good to have regional assembly plants that allow us to provide the vehicle at a lower cost,” Sheinbaum added.
The project is ambitious, and funding appears tight: the government has allocated just 25 million pesos (around 1.2 million euros) for the development of mini-vehicle technology in 2025. The National Polytechnic Institute (IPN) and the National Technological Institute of Mexico (TecNM) have been selected to help develop the vehicles’ technology.
The three Olinia models will all share a common multi-purpose platform, with identical chassis, engines, and batteries. Two of the models will be mini-vehicles designed for urban areas—one a three-door and the other a five-door variant—and a third model will be a small electric delivery van for last-mile logistics. These vehicles will likely be categorized as L7e light electric vehicles in Europe.
Despite concerns about the safety of small electric vehicles, the Olinia models will be marketed as an alternative to motorcycles, which have been associated with rising traffic accidents. “Motorcycles are popular, but also risky,” Sheinbaum noted. “So, this small vehicle must be safe, electric, and primarily made in Mexico.”
The Olinia project has garnered significant attention as part of Mexico’s broader push to expand its electric vehicle sector. Major automakers such as General Motors, Ford, and Volkswagen already manufacture electric cars in the country, while Tesla’s planned Giga Mexico plant is currently on hold.
Olinia’s government-supported approach could mark a significant shift in Mexico’s EV market, combining affordability with local production and safety. However, questions remain about the viability of regional production and whether it will be able to meet the demands of the growing EV market.
Source: mexico-now.com
