Chinese automaker BYD is pursuing an extension of tariff relief for electric vehicle (EV) imports from the Mexican government as it aims to establish a manufacturing facility in the country.
In an interview with the newspaper Reforma, Jorge Vallejo, BYD’s country head, expressed the company’s intention to negotiate the continuation of a decree that exempts 15% to 20% of tariff payments on EVs imported from nations without a trade agreement with Mexico. This decree is set to expire at the end of the month, coinciding with the departure of President Andres Manuel Lopez Obrador.
Vallejo stated, āThe proposal to the Mexican government is to see the possibility of, through our investment in a new plant, having the conditions to extend the decree.ā BYD began its sales operations in Mexico last year through imports and has announced plans to construct a local plant with a production capacity of up to 500,000 vehicles annually to serve the domestic market.
The company’s proposal includes alternative options for the government, such as the possibility of applying no tariffs, offering preferential tariffs, or implementing a quota-based tariff system. Vallejo noted that BYD is awaiting a response from the government, emphasizing that the new administration, led by former Mexico City Mayor Claudia Sheinbaum, will assume office on October 1. Vallejo added that the company would wait for the new administration to take a definitive stance.
In August, Vallejo that BYD had narrowed its options to three finalist states for the location of its upcoming plant, signaling the company’s commitment to expanding its presence in the Mexican market.
Source: Reuters
