**Tijuana Chamber of Commerce Urges Government Action on Used Car Imports**
The Tijuana Chamber of Commerce, Services, and Tourism (Canaco-Servytur) has called upon President Claudia Sheinbaum Pardo to expedite the renewal of a federal decree regulating the importation of used foreign vehicles. The decree, whose validity ended on September 30, 2024, played a crucial role in easing the import processes for used cars into the northern border regions of Mexico.
Julián Palombo Saucedo, president of Canaco-Servytur, expressed concerns over the potential economic impact on formal car lots if the decree isn’t renewed. Without it, importing vehicles becomes financially unfeasible, likely forcing dealers to resort to selling informally in the streets. Katia Torres, vehicle import manager for Grupo Logix, added that import taxes would significantly increase from 1% to 50%, further straining the market.
Before its expiration, the decree allowed the importation of cars five to nine years old, and now those purchases are stranded, causing financial losses. The end of the year typically sees a 50% rise in used car sales, making the decree’s absence even more impactful.
Jorge Macías Jiménez, vice president of Canaco’s specialized group of used cars, highlighted that legal importation previously cost between 1,200 and 2,500 dollars per vehicle, a fraction compared to the 2,500 pesos for regularizing illegally imported “chocolate” cars. Macías noted the stark disparity and the resultant unfair competition.
With the extension of the legalization of “chocolate” cars until 2026, the halt in legal imports seems to be inadvertently encouraging illegal ones, thus increasing market informality. Kurt Honold Morales, the State’s Secretary of Economy and Innovation, is working with federal authorities to restore the decree, potentially leveraging the USMCA agreement to facilitate cross-border vehicle sales.
**Additional Developments on Used Car Imports in Mexico**
In a recent development, discussions continue around the extension of the vehicle regularization program for illegally imported cars, known as “chocolate cars.” This extension has raised concerns among local businesses about the implications for the formal automotive sector. Automotive associations in other border states have echoed Tijuana’s concerns, emphasizing the need for a balanced approach that does not undermine legitimate businesses. The federal government’s silence on the issue has been met with increasing calls for clarity and action, as stakeholders urge an efficient policy that caters to both economic growth and regulatory compliance.