Mexico limits tariff break to established local carmakers
XLY•XLY•XLY•XLY•Mexico said a five-year tariff break cutting duties on certain imported car parts from 10% to zero applies only to automakers with production facilities in the country. The economy ministry said 11 carmakers were eligible but did not name them.
Mexico clarified that its five-year tariff break for certain imported assembly parts applies only to companies with “productive installations” in the country and that meet other criteria. The decree cuts the import tariff on some semi-knocked-down and completely knocked-down kits from 10% to zero.
The economy ministry said 11 carmakers qualify but did not name them. Industry data points to Audi, BMW, Ford, General Motors, Honda, Kia, Mazda, Nissan, Stellantis, Toyota and Volkswagen as potential beneficiaries. The clarification followed analysts’ questions about whether the decree could benefit Chinese brands or other newcomers.
