The Government officialized changes in internal taxes for cars and Requirements to bring hybrid and electric vehicles without paying tariff Import, announcements advanced by the Minister of Economy, Luis Caputo.
The first case was confirmed the elimination of the first scale (20%aliquot) of the “luxury tax”, which applies to list prices between 41 and 75 million pesos. In addition, the aliquot of the second scale was reduced by half (18%) (before it was 35%).
According to the minister himself, this will produce “between 15% and 20%” prices discounts. In the first list that Ford was shared showed discounts of up to 18%. While the Chinese brand importer BAIC reflected reductions of up to 15%.
The rest of the new price lists of the other companies must appear from now on. This government announcement was received very goodly by the entire sector,
The other party that was missing the details was in the announced remover of import tariffs for hybrid and electric passenger vehicles, information that was now known with the publication of the decree.
What does the measure say?
This measure is Foster the use of models with alternative energyas reported from the Executive. And in the published data the details that had been advanced were confirmed.
This benefit will run for vehicles that have a FOB price less than $ 16,000. This acronym comes from English Free On Board and represents the value of merchandise or product on board a maritime transport. To that value then you have to add the cost of import tariffs and taxes in each country.
And although it is difficult to determine the FOB price of each product, since the agreements between seller and buyer can have multiple variables, it could be said that a model with a FOB of 16,000 dollars, which is what the government proposes in this announcement, will result then in a vehicle whose market price will be between 25 and 30 million pesos.
In Argentina, every vehicle that arrives imported “extra zone”, that is, that it does not come from countries with which there is free trade agreement, such as Brazil and Mexico, must pay a 35%tariff. With which this modification would significantly reduce the import cost.
This measure contemplates a quota of 50,000 units that will receive benefit (It remains to define if they are annual), which is three times the number of electrified models that were sold during the past year. In addition, it would represent 10% of the total projected market for this year.
What types of cars will receive the benefit?
According to what is published by the Government, this benefit is contemplated for models that “use an alternative motorization technology to conventional internal combustion engines, understanding as such propelled by an electric motor and alternately, or jointly, by an internal combustion engine (hybrid vehicles); an electric motor exclusively (electric vehicles) or an engine at fuel cell (hydrogen vehicles) “.
They are exempted from the tariff’s remove Those who have a weight of less than 400 kiloswithout counting the batteries, have a power of less than 15 kW or an autonomy of less than 80 km. This regulation is expected to be valid for five years.
As interpreted in what was expressed in the decree, which would be excluded from this benefit are models with Mild-Hybrid or soft hybridization technology, since they have a degree of electrification as a set of propulsion, but the electric motor is never Able to move the wheels alone.
Chinese hybrid and electric invasion?
The Argentine market was The most elusive to the spread of Chinese brands throughout Latin America. The reasons are several, but among the most important are tariff and tax guidelines, the years with import restriction and fluctuations that generate economic instability.
With a scenario that today is different, this new measure of elimination of the tariff for the importation of hybrids and electric shouted perfectly to vehicles from the Asian giant.
China is the country that most pushed in the adoption of models with alternative energy. Last year, There almost 12.8 million hybrid and electric units were sold and represent 40% of total sales. And it is projected that this year they represent half of the sales of 0 km.
To this mass production we must add the subsidies that the Chinese government makes to the automotive industry allowing extraordinarily low sales values to be compared to European, Japanese, Korean or American rivals.
To have an idea, the models that are sold today in Argentina and would have the removal of the import tariff are the Renault Kwid E-Tech and the BAIC EU5 and BJ30E, three electrified vehicles that come from China. And they are just three examples of the dozens of models with those characteristics manufactured there.
“BAIC has very competitive hybrid and electric products. Let’s see how they look,” he said to Clarion Hugo Belcastro, importer of the Chinese brand in Argentina. Who showed an excited caution: “We are going to wait for regulations but it is a good start.”
While it will not be like the invasion of Chinese cars that is happening in Brazil since last year, but the context suggests that a new era of models from the Asian giant in our country begins.
