Mexico limits tariffs break to established local carmakers

Volkswagen AG

16/10/2026 19:34

MEXICO CITY, Oct 16 (Reuters) - Mexico said on Friday that a new five-year tariff break for imported car parts will apply only to automakers that already have production facilities in the country.
The clarification comes several days after industry analysts raised questions about the decree's potential to open the door to Chinese brands or other newcomer car companies.
A decree published Tuesday cut an import tariff to zero from 10% for certain assembly parts, including semi-knocked-down (SKD) and completely knocked-down (CKD) kits
The move prompted industry analysts quoted in local media to suggest Chinese automakers such as GAC 600418.SS and JAC 601238.SS could be poised to benefit
The economy ministry on Friday clarified that the measure applies only to companies with "productive installations" in Mexico and that meet other specific criteria
The ministry said 11 carmakers were eligible under the scheme, without naming them 
Industry data reviewed by Reuters points to those firms as potentially being Audi, BMW BMWG.DE, Ford F.N, General Motors GM.N, Honda 7267.T, Kia 000270.KS, Mazda 7261.T, Nissan 7201.T, Stellantis STLAM.MI, Toyota 7203.T and Volkswagen VOWG.DE
Mexican sales of Chinese-brand vehicles jumped nearly 30% in the first six months of the year despite steep ‌tariffs intended to slow the rise of Asian imports

 (Reporting by Kylie Madry, Editing by Daina Beth Solomon)
 ((Kylie.Madry@thomsonreuters.com;))