MexicoMexico has waived its 10% import duty on parts and components used to assemble cars, for five years from 14 October 2026. The decree was published in the official gazette on 13 October. It covers one tariff line, 9803.00.01, and its stated aim is to bring in assembly lines for light vehicles that Mexico currently imports whole.
Who qualifies
The zero rate applies only to vehicle makers that hold a bonded-warehouse authorisation for assembly under Mexico’s customs law and follow Economy Ministry guidelines. The decree does not name companies, confirmed new plants or investment amounts. It is not a general cut on auto parts, and it does not apply to any importer that asks.
Why kits
The decree singles out projects that begin with SKD or CKD assembly. SKD stands for semi knocked down and CKD for completely knocked down: the car arrives as a partly or fully dismantled kit and is put together locally. The decree treats this as a first step toward more complex manufacturing with more Mexican suppliers, and ties it to the Plan México announced on 13 January 2025.
Chinese brands
Cars from China have paid a 50% tariff since January, because Mexico has no free-trade agreement with China. Sales of Chinese brands still rose by nearly 30% in the first half of 2026, to 137,525 vehicles from 107,712, taking a 17% share against 14% a year earlier, according to the Mexican Association of Automobile Distributors report seen by Reuters. Mexico’s deputy trade minister told Reuters the sales figure misleads, because Chinese makers shipped heavily before the tariff rise, and said imports of Chinese-brand vehicles fell 43% in the first five months.
BYD, Chery, MG, Geely, Great Wall and GAC had looked at building assembly plants in Mexico. El Economista reported on 1 October that they had put those plans on hold over the uncertain future of the USMCA trade pact. The decree names no beneficiaries, so it is not yet clear which makers will use it.
