BYD seeks further easing of Mexico EV tariffs

MEXICO CITY — Chinese automaker BYD is seeking an extension of tariff relief for electric vehicle imports from Mexico's government, an executive told newspaper Reforma in an interview published on Friday, as the company aims to build a plant in the country.

A decree exempting some 15 percent to 20 percent of tariff payments on EVs imported from countries with which Mexico does not have a trade agreement is set to expire at the end of the month, as President Andres Manuel Lopez Obrador leaves office.

"The 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," country head Jorge Vallejo told Reforma.

BYD launched sales in Mexico last year via imports, and the company has since announced plans to build a local plant to push out up to 500,000 cars a year for the domestic market. Those plans reportedly have been put on hold until after the U.S. elections. 

Vallejo said BYD's proposal to the government also offered alternatives, such as applying no tariff, a preferential tariff to the firm or a quota-based tariff.

The executive said BYD was still waiting for a response from the government. Lopez Obrador's successor, former Mexico City Mayor Claudia Sheinbaum, will take office on Oct. 1, and Vallejo added that the company would wait for the new administration to take a position.

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