The 35% Tariff Redefines Strategy for New Auto Brands in Argentina

The Argentine automotive market awaits definitions on the scheme that will govern the quota for importing hybrid and electric vehicles without paying the out-of-zone tariff of 35% in 2027. The program allowed the entry of 100,000 units under that benefit during its first two allocations.

The quota spurred the arrival of new brands, but the limited volume of units makes it difficult to sustain dealerships, spare parts, and official service centers. For this reason, companies are seeking to expand their catalogs with internal combustion models, even though they must pay the tariff.

Quota distribution is one of the main points of discussion. While some brands received more than 10,000 units, other importers are calling for a larger allocation to be able to grow. The current scheme divides the 50,000 annual units between manufacturers and importers, with 25,000 for each group.

The case of Ford Territory illustrates the commercial impact of this strategy. The SUV arrives from China in four versions, with only the hybrid variant exempt from the tariff. Between January and August, 13,848 units were registered, and 6,561 corresponded to the hybrid variant; the other versions paid the 35%.

Among the models subject to the levy are vehicles from Mercedes-Benz, BMW, Audi, Lexus, Volvo and Subaru, as well as mainstream products such as Ford Everest, Peugeot 408, 3008 and 5008, Renault Koleos, Hyundai Tucson and Santa Fe, and various models from Toyota, Honda, Kia, Nissan, Jeep and RAM.

Gasoline-powered models from recent Asian brands have also been incorporated. Baic, BYD, Haval, Jetour and MG offer vehicles that enter outside the quota and pay the tariff. In the first eight months of the year, 34,322 units out of a total of 363,019 registrations paid the out-of-zone duty, equivalent to 9.5% of the market.