Key facts
- Tariff break applies only to automakers with existing production facilities in Mexico.
- The measure covers certain assembly parts, including SKD and CKD kits.
- 11 carmakers are eligible for the tariff break.
Mexico's economy ministry announced on Friday that a new five-year tariff break for imported car parts will be exclusively for automakers that already possess production facilities within the country. This clarification follows concerns raised by industry analysts who speculated that the decree might benefit new entrants, such as Chinese car manufacturers. The decree, initially published on Tuesday, reduced the import tariff on specific assembly parts, including semi-knocked-down (SKD) and completely knocked-down (CKD) kits, from 10% to zero. The ministry confirmed that 11 carmakers are eligible for this scheme, though it did not name them. Industry data suggests these eligible companies may include Audi, BMW, Ford, General Motors, Honda, Kia, Mazda, Nissan, Stellantis, Toyota, and Volkswagen.