Isuzu Motors on Monday reportedly said it may export light-duty trucks to Mexico, taking advantage of a bilateral free-trade agreement (FTA) implemented earlier this month.
“We are discussing a plan to export trucks to Mexico,” a company spokesman told Reuters, declining to elaborate.
The news agency noted that, under the FTA, Japanese auto makers are allowed to bring into Mexico up to 50,000 vehicles a year free of tax – previously, Japanese auto makers without factories in Mexico were subject to a 50% tax on the vehicles.
Reuters said the Nihon Keizai Shimbun business daily reported over the weekend that GM affiliate Isuzu planned to sell the Elf light-duty truck from October, with an initial shipment target by the end of December of 2,000 units.
It was also considering setting up a production plant with support from GM, the paper reportedly said.
Isuzu would form an equally owned sales company in Mexico jointly with partner Mitsubishi Corp., Japan’s biggest trading company, the paper said, according to Reuters.
The news agency noted that Mazda said in December it would begin selling vehicles in Mexico under a new sales company, targeting the country’s three largest metropolitan areas, while Toyota, Nissan Motor and Honda already have production plants in the country.