Posted on 30 Jan 2025
Argentina has scrapped tariffs on hybrid and electric car imports as part of a tax overhaul in a move expected to boost domestic EV adoption.
The price threshold for imported EVs and hybrids excluded from duties is $16,000, Kallanish understands. Luis Caputo, the country’s minister of economy, set an annual quota of 50,000 imported units for electrified cars.
EVs have struggled to take hold in Argentina as most of them are imported, with tariffs affecting their price competitiveness compared to ICE counterparts. Locally produced EV models include the Volt E1, the Sero Sedan, and the Tito Corradir – the latter is a best-selling in its category.
Caputo also says that internal taxes for cars costing ARS 41-75 million ($39,000-71,410) will be reduced from 20% to zero, while for vehicles priced over ARS 75m will be cut from 35% to 18%. This is expected to lower market prices by 15-20%, notes Caputo, in the hope of boosting consumer demand.
Adefa, Argentina’s trade association for automotive manufacturers, welcomes the measures, saying it will boost economic development. “We hope that provinces and municipalities will join in this direction,” Adefa writes on X.
In Q2 2024, the domestic hybrid and electric vehicle market expanded by 45% year-on-year with 3,672 units sold, says Argentinian vehicle services provider Ituran. Yet, all-electric cars only reportedly accounted for 0.1% of the total car market in November.
According to the World Bank, Argentina has ambitious goals for electric mobility, planning to replace 9.5% of countrywide light utility ICE vehicles with all-electric and plug-in hybrid electric vehicles by 2030.
Source:Kallanish
