Business · Trade · 8 hrs ago
Mexico opens door to vehicle assembly from imported kits
Mexico is seeking auto investment through assembly from imported kits, including parts from countries such as China, which has no free-trade agreement with Mexico.
The government has removed a 10% tariff on importing these kits, according to the story.
The kits allow vehicles to be assembled locally from components brought in from abroad, with the amount of assembly done in Mexico depending on the kit and process.
In 1962, Mexico set rules requiring at least 60% of a vehicle’s parts to be made locally, restricting the import of kits for assembly.
Those rules helped build a local parts industry, which later shifted to regional content rules under the North American Free Trade Agreement.
The industry now has more than 2,000 auto-parts plants employing 880,000 people, according to an industry report cited in the story.
Officials say kit assembly could grow into fuller manufacturing, gradually increasing the value produced in Mexico.
Mexico is considering vehicle assembly from imported kits containing components from countries with which it has no free-trade agreement, including China.
The operations involve final assembly in Mexico after much of the industrial work has taken place abroad.
Mexico’s government says the arrangement could develop into full manufacturing that gradually adds more domestic value.
A 1962 automotive decree restricted imported kits and required at least 60% of a vehicle’s direct cost to come from locally made parts.
Mexico’s auto-parts network now has more than 2,000 plants and generates 880,000 jobs, according to an industry report.
- Who
- Mexico’s government is seeking to attract automotive investment; vehicle manufacturers could assemble the imported kits.
- What
- The country is opening the door to final assembly of vehicles from imported components.
- When
- The article was published on October 30, 2026. The timing of the policy change is not stated.
- Where
- Mexico.
- Why
- The government says assembly could evolve into fuller manufacturing and gradually increase domestic value.
This story does not have two clearly opposing sides.
President Adolfo López Mateos issued Mexico’s first automotive decree, requiring local components and restricting imported kits.
The decree prohibited imports of car and truck engines and assembled mechanical sets for use or assembly in those vehicles.
Expansión MX reported on Mexico’s effort to attract automotive investment through final assembly of imported components.
- Countries cited
- China and other countries without a free-trade agreement with Mexico
- Local-parts requirement
- At least 60% of a vehicle’s direct cost under the 1962 decree
- Auto-parts plants
- More than 2,000
- Auto-parts jobs
- 880,000
- Sector employment share
- About 41% of automotive-sector jobs
1 source
What people are saying
In SKD, you bring the car in parts and just assemble it here and sell it.
Since that time, all imports of CKD and SKD cars in boxes were restricted, and 60% from Mexican suppliers was required.