Mexico repeals decree on foreign vehicle regularization

Mexico has repealed a decree that facilitated the regularization of foreign-sourced used vehicles, a move intended to curb the influx of irregular imports. The measure, which concluded on January 1, 2026, had allowed nearly 3 million vehicles to obtain legal plates, a process the Mexican Association of Automobile Distributors (AMDA) argued negatively impacted the domestic market by introducing highly polluting and potentially unsafe units.

Industry representatives note that while the repeal aims to restore order, challenges remain. In regions like Reynosa, the sale of vehicles with U.S. plates continues to rise, creating what local importers describe as unfair competition for established businesses that pay taxes and follow formal import protocols.

Experts point out that the high cost of formal importation—which can sometimes exceed the commercial value of older models—remains a barrier. For example, importing a 2010 model may cost significantly more than its market value, incentivizing the continued circulation of irregular “chocolate” cars.