Mexico has announced a five-year exemption from the 10% import tariff on auto parts used for vehicle assembly, a move aimed at lowering the cost of setting up and running new car plants, according to a report by D1EV, a Chinese EV news outlet. The federal government said the temporary tariff relief would help attract more vehicle and parts production to Mexico, create specialized jobs, promote technology transfer, and strengthen domestic supply chains.
BYD shifts to partner-based assembly in Malaysia
BYD's Malaysian arm has formally appointed Inokom, a unit of Sime Darby, as its CKD (completely knocked-down) assembly partner, signing a memorandum of understanding at BYD's Shenzhen headquarters. This marks a shift from BYD's earlier plan to build its own dedicated plant in Malaysia to using a partner's existing facilities, allowing faster and cheaper localization, according to D1EV.
In other international news, Tesla unveiled a redesigned Roadster electric sports car on October 16, featuring SpaceX thrusters developed with Elon Musk's rocket company. The car can accelerate from 0 to 60 mph (about 97 km/h) in under one second and reach a top speed exceeding 230 mph (about 370 km/h), with production slated to begin in 2028. Tesla also showed the vehicle driving upside down on a ceiling and using thrusters to turn in mid-air.
South Africa plans to phase out policy support for semi-knocked-down (SKD) assembly operations, with Trade, Industry and Competition Minister Parks Tau saying the government will no longer back new SKD facilities, aiming to push the industry toward higher levels of local manufacturing and parts supply, D1EV reported.
Europe, US trade moves and recalls
France and Germany are close to an agreement to relax the European Union's 2035 CO2 reduction target for cars, setting it at 90% instead of the current 100% requirement, and to extend "Made in Europe" rules to include the UK, though this depends on a comprehensive reciprocal deal and the UK's willingness to align with EU conditions for third-country investment and trade defense measures, according to D1EV.
Talks on a US-Mexico tariff deal have stalled after US Commerce Secretary Howard Lutnick objected, with the two sides close to an agreement that would have lowered US tariffs on steel, aluminum, and autos in exchange for Mexican concessions, the Wall Street Journal reported, citing sources.
Global EV sales fell 2% year-on-year in September to 2.15 million units, ending a six-month growth streak, according to data from Benchmark Mineral Intelligence cited by D1EV. European sales hit a record, but declines in North America and China outweighed that gain.
Chery plans to launch a new electric SUV under its iCAUR brand in the UK in early 2027, three years after introducing its Omoda brand there. Chery brands held a 7% UK market share through September, making it the best-selling Chinese automaker in the country, D1EV reported.
Volvo Cars is expanding its partnership with Nvidia to integrate the chipmaker's computing, sensor, and driving software with Volvo's safety systems for future models, combining Nvidia's Hyperion architecture, Halos safety system, and Alpamayo driving software stack to handle complex scenarios from highways to busy city streets and parking lots.
Hyundai is recalling 94,622 vehicles in the US because front electric seat motors may overheat and pose a fire risk, while Volkswagen is preparing a recall in Germany over defective high-voltage battery cells affecting 2023-2025 ID.3, ID.4, ID.7, ID.Buzz, and Cupra models, with driving restrictions until battery checks are completed.
