BYD Seeks Tariff Extension in Mexico

MEXICO CITY (Reuters) – Chinese automaker BYD (SZ:002594) is seeking an extension of tariff relief for electric vehicle imports from Mexico’s government, as reported by newspaper Reforma in an interview published on Friday. The company aims to establish a plant in the country.

A decree currently exempts approximately 15% to 20% of tariff payments on EVs imported from countries without a trade agreement with Mexico, but it is set to expire at the end of the month, coinciding with President Andres Manuel Lopez Obrador’s departure from office.

“The proposal to the Mexican government is to explore the possibility of extending the decree through our investment in a new plant,” stated BYD’s country head, Jorge Vallejo, in the interview.

BYD began its sales in Mexico last year through imports and has announced plans to construct a local plant capable of producing up to 500,000 cars annually for the domestic market.

Vallejo added that BYD’s proposal included various alternatives, such as applying no tariff, providing a preferential tariff to the company, or implementing a quota-based tariff.

The executive mentioned that BYD is still awaiting a response from the government. Lopez Obrador’s successor, former Mexico City Mayor Claudia Sheinbaum, will assume office on October 1, and Vallejo indicated that the company would wait for the new administration’s position.

In August, Vallejo informed Reuters that BYD had narrowed its location options for the future plant down to three finalist states.