Mexico limits tariffs break to established local carmakers

MEXICO CITY, Oct ‌16 (Reuters) - Mexico ​said ​on Friday that a new five-year tariff break for imported car parts will ‌apply only to automakers that already have ⁠production facilities in the country.

The clarification comes several days ‌after industry analysts raised ‌questions about the decree's potential to open the door to Chinese brands or other newcomer car ​companies.

• A decree published Tuesday cut an import tariff to zero from 10% for ⁠certain assembly parts, including semi-knocked-down (SKD) and completely knocked-down (CKD) kits

• The move ​prompted industry analysts quoted in local media to suggest Chinese automakers such as GAC ​and JAC could be ‌poised to benefit

• The economy ministry on Friday clarified that the measure applies ⁠only to companies with "productive installations" in Mexico and that meet other specific criteria

• The ministry said 11 ⁠carmakers were eligible under the scheme, without naming them

• ​Industry data reviewed by Reuters points to those firms as potentially being Audi, BMW, Ford, General Motors, Honda, Kia, ‌Mazda, Nissan, Stellantis, Toyota and Volkswagen

• Mexican sales of Chinese-brand vehicles jumped ‌nearly 30% in the first six months of ⁠the year despite steep ‌tariffs intended to ​slow the rise of Asian imports

(Reporting by Kylie Madry, Editing by Daina Beth ‌Solomon)

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