Mexico’s government is strongly supporting the development of the domestic “Taruk” electric bus, aiming to reduce reliance on Chinese manufacturers, strengthen the local industrial base, and keep up with the global trend towards electric vehicles. This initiative comes at a time when global concerns about the security of Chinese supply chains and industrial dependence continue to rise.
Currently, over 80% of the electric bus market in Mexico is dominated by Chinese manufacturers Yutong and BYD. In an effort to reduce dependency, the Mexican government has prioritized the development of domestically manufactured electric buses and is supporting the project by the 75-year-old family-owned company DINA.
The “Taruk” buses are approximately 9.5 meters long, can accommodate about 60 passengers, have a maximum range of about 350 kilometers, and a charging time of around two hours. DINA believes that these buses are sufficient to meet the public transportation needs of cities. The electric buses have entered into practical testing and commercialization stages.
In 2025, these buses began testing in Mexico City’s public transportation system. In June 2026, the capital of Quintana Roo, Chetumal, welcomed the first batch of 5 “Taruk” buses for a 4-week technical and passenger testing period. The local government announced that these buses would be integrated into the MOBI public transportation system.
DINA’s CEO, Alargo Gómez Sierra, emphasized that Mexicans are tired of a large number of Chinese-manufactured buses, and the company aims to significantly increase its market share through this initiative. If successful, the company may produce 5,000 to 6,000 buses annually in the future, with plans to develop an extended version that is over 12 meters long, nearly 30% longer than the current models. The current domestic production ratio is over 70%, with the goal to quickly increase it to 75% to 80%.
This initiative was initiated during Claudia Sheinbaum’s term as mayor of Mexico City. Four years ago, the city government asked DINA if they could convert diesel buses into electric buses, prompting the company to start developing from scratch. Gómez Sierra stated at the time, “This is not about making rockets or spaceships; we have the ability to make a bus.”
The electric power system (including motors) is managed by the local longtime company Megaflux, with design and assembly done entirely within Mexico. DINA and Megaflux have jointly invested approximately $60 million in the development. Initially, the drive units were installed on second-hand buses, with an improved range of up to 180 kilometers, nearly doubled after modifications.
However, the battery remains the major bottleneck. The “Taruk” buses still rely on Chinese-made battery cells, highlighting a key barrier to local production. Roberto Gottfried, CEO of Megaflux, pointed out that China supplies about 80% of the world’s batteries, with batteries constituting 25% of the yet-to-be localized 30% of the components in “Taruk.” The company hopes to reduce reliance on Chinese products within two years, believing that Mexico’s market of over one million buses can support the rise of a domestic battery industry.
Moreover, the Mexican government recently showcased a compact pure electric car prototype called “Olinia,” developed at a national level with joint manufacture by national technical research institutes and research centers. This urban microcar aims to provide an affordable short-distance transportation option.
The Olinia Uno, officially unveiled in June 2026, has a starting price of 150,000 Mexican pesos, approximately $8,000. The official range exceeds 125 kilometers, with a top speed of 50 kilometers per hour, and delivery is planned to commence in the summer of 2027.
Currently, officials state that “Olinia” has about 50% local content, with the goal of increasing it to 75% by 2030.
During the announcement ceremony, Sheinbaum mentioned that the fuel costs for this car are expected to be only half of a motorcycle’s, significantly lower than that of small gasoline cars. She noted that in the past, Mexico has been seen by others as only suitable for assembly, not for technological innovation, and she stated, “Now I can say that this is incorrect.”
Concerns about Chinese traffic technology products are not unique to Mexico. In 2025, Norwegian public transportation operator Ruter conducted tests on Chinese Yutong electric buses, revealing vulnerabilities that could allow external parties to remotely control the vehicle’s operations or access its systems.
The U.S. government has essentially banned Chinese-made electric cars from entering the American market, citing concerns that the Chinese Communist Party could exploit these products to threaten national security and steal sensitive data. Currently, it is gradually tightening the import of Chinese-made products such as drones, robots, and routers.
(Reference: Reports from “Nikkei Asia” and others)