Cheaper cars?: What will happen to the market after import liberalization

“We can only offer this model because the highest quality models are in the port. They have allowed us to take out very few cars “We have to bring in people who sell more at their price.”. This phrase was said by one of the importers at the end of 2022, and the obstacle that the importers faced was in bringing the models that they wanted to market in Argentina.

That was one of the Obstacles faced by the automobile market during the past two years, although it has deepened to unimaginable levels in the past six months. Even Argentine manufacturers with factories who wanted to launch a particular line faced other problems. It was so ramWhich announced in December last year the arrival of the version Rebels But they have only been able to enter it since last October, after agreeing on the necessity of signing all stations with the Ministry of Economy to put a car in them. “fair prices” In exchange for SIRAs that have not been issued since July.

These types of situations are made even Launches will be postponed to this December or the beginning of 2024Model launches that were on the agenda but could not be completed.

“We have a fair number of vehicles that we would like to bring to the market, but it was not possible to plan anything with such big restrictions. Now yes, we will be able to do it.” Schedule a year of releases “With some very interesting products,” one station executive said during an end-of-year luncheon. He stressed: “Don’t ask me what the models are, but there will be good news in 2024.”

Change is a result SIRAs disappear and open to imports without quotas or history Which has entered into force in Argentina since Tuesday, December 26, which has generated great satisfaction among all players in the automotive market. Not only at importers, but also at factories, which will now be able to offer a wide range of models on offer.

“The obstacle is no longer one or two regulations. The only remaining obstacle is the customs tariff, which so far remains as it was, and which, in theory, will begin to balance with the need for the domestic automobile industry to remain competitive, because in addition to exporting and bringing foreign currency into the country, it generates thousands of jobs. said a senior official from the plant that exports most of its production.

There will be more flexible entry for units from Mercosurespecially from BrazilBecause they just have to pay 17.5% state taxBut they maintain 0% import tariff. There you will see competition similar to what existed two years ago, for example in a category Hatchback Compact and B-segment SUVs, which have lost market share compared to their counterparts manufactured in Argentina, e.g Fiat Cronos, Peugeot 208 Wave Chevrolet Tracker.

On the other hand, cars Imported from outside the region, Plus state tax They will continue to receive the current 35%This implies that the price will still be high compared to what could happen in 2025. “It would not be surprising that when the year is over we will see a 17.5% PAIS tax as promised by the government; It also reduced the import tariff from outside the region by 15%. Which can be kept at 20%. An important businessman who does not produce but rather imports cars of different brands from Europe said: “It would be fair for us, the importers, because it would at least maintain the ratio and competitiveness with the region’s cars, both Argentinian and Brazilian.” And Asia.

Until that happens, with current taxes, the big winners in 2024 will be those who bring in more affordable cars. Brazil or Mexicothose who bring high-end cars Europe and the United Stateswhere the price does not matter because customers pay it, and Chinese car importersWhich, despite paying a 35% tariff, has prices that can compete with Mercosur products.

In particular, there is one brand that has taken the lead. It's about BYD, the first manufacturer from the Asian giant is already building its factory in Brazil with the aim of supplying the entire region with its entry-level products. Time will tell.