Mexico's Chocolate Car Program Faces Deadline and Demands

As the September 30 deadline for Mexico's "chocolate" car regularization program approaches, there are growing demands for an extension or modification of the existing decree. These vehicles, which entered the country before October 19, 2021, are at various stages of legal processing, with many facing obstacles due to documentation issues. Key stakeholders in northern Mexico, particularly in Sonora and Baja California, are pushing for changes to ensure that all eligible vehicles can be properly legalized before the deadline.

"Many vehicle owners have already made the necessary payments, but their cars were rejected during the verification process by the Public Vehicle Registry (Repuve). Some were denied due to inconsistencies in the title of ownership,” said Martín Manzo, Representative, Frente Estatal de Autos. In Sonora alone, over 20,000 foreign-origin vehicles are currently awaiting regularization. 

Initiated in January 2022 through a presidential decree, the regularization process allows these vehicles to obtain legal status and permits under Mexican law. To complete this process, owners must present the original title proving the vehicle's entry into Mexico before the October 2021 cutoff. However, many vehicles have been rejected due to errors in the physical inspection or discrepancies in the required documentation.

The current decree has already been extended multiple times since its introduction. Initially, the regularization program was set to conclude in September 2022, but the Mexican government has extended the deadline, with the most recent extension occurring in March of this year. Advocates like Manzo argue that further adjustments to the decree are crucial to address the large number of unresolved cases.

In Baja California, the state has been leading the regularization efforts. Tijuana, the largest city in the state, has legalized 142,220 vehicles, followed by Mexicali with 108,950 and Ensenada with 45,820. According to the communications department of Baja California’s Federal Delegation, a total of 380,952 vehicles have been regularized in the state as of July 23, 2023.

The program, launched by President Andrés Manuel López Obrador, aims to tackle the influx of foreign vehicles that have entered Mexico illegally or without proper documentation. In announcing the regularization initiative, López Obrador emphasized that the program was focused on states such as Baja California, where the number of foreign vehicles is notably high. Since its inception, over 2.5 million “chocolate” vehicles have been legalized.

A significant motivation behind the program is the allocation of funds generated through the regularization process. Fees paid by vehicle owners are designated for public works projects, particularly road improvements. In Baja California, approximately MX$952 million has been collected from the program, placing the state third in revenue generation, behind Chihuahua and Tamaulipas.

The regularization decree took on a new dimension in December 2023 when it was expanded to include vehicles from European and Asian origins, following another announcement by López Obrador.

While the regularization program has effectively processed hundreds of thousands of vehicles, it is evident that substantial challenges persist, as the legalization of “chocolate” cars has led to a decline in new vehicle sales nationwide. In Sonora, advocates like Manzo emphasize that without an extension to the decree, many vehicle owners will be excluded from the legal framework, despite their compliance efforts.