The limitations on imports that existed until last year affected the entire automotive sector, but particularly hit companies whose vehicles come from abroad. Among them, luxury brands saw their sales limiteda reality that completely changed this year and that shows another horizon for those who come.
The opening policy proposed by the administration of President Javier Milei allows premium brands to import vehicles without restrictions. And the result is clear: today they are selling twice as much as they did last year.
This is the specific case of Mercedes-Benz, which calculates close the year around 1,500 units delivered: “This is practically double what we sold last year,” he told Clarion the sales manager of the German brand in the country, Jorge Lucini.
The executive’s statements were made within the framework of the launch of the new generation of the Class Ethe brand’s large midsize sedan, and the sports car KEY Coupeincluding the version prepared by AMG.
The particularity that these results have in the luxury car segment is that although the possibility of importing was opened, the prices of premium vehicles in Argentina can represent more than double what they cost in other markets around the world due to the heavy tax burden that they still maintain.
“It was an excellent year”
With a very different panorama, the star brand almost completely renewed its offer in the country during 2024, with new models, renewal of generations or updates. In short, he hopes to close the year with eleven launches in total.
“It was an excellent year. We are going to end up selling 1,500 units. It is practically double what we sold last year. It is also excellent because the premium market is recovering. Historically, this segment represents more or less between 1 and 1.5 percent of the total industry was. It fell to 0.6% and today it is on its way to 1.3%,” Lucini pointed out.
-And how do you see next year?
-I think next year will be better and we are planning accordingly.
-How much do you think the Premium segment is going to close this year and how much do you predict for next year?
-This year between 4,500 and 5,000 vehicles. And I think that next year, with a little tailwind, it will return to 6,000.
-Anyway, it is a small portion compared to other markets. What does Argentina need to get closer to those premium portions seen in other countries?
-Similar to another market, I don’t think it will happen. The cars sold here are truly premium. It seems to me that this is not the case in other countries in the world, but I do believe that there is potential for this market to be much more important. That will depend a little on the evolution of the economy, prices, taxes…
-The internal tax on everything (also known as the Luxury Tax).
-Yes, logically yes. We adapt to everything, but reality is easy to see. If you look at the list price of a car and what it had in 2013, you will see that there is an increase, which is largely a product of that internal tax.
-Have you measured how much your sales can grow if the internal tax is removed or modified?
-My opinion is that it would be at least very good if it were modified. No, let it be removed. I think it’s not the time. It will depend on other economic variables. But if the rate is modified a little, we could sell 2,500 or 3,000 cars, with a sector that accompanies that relationship.
-What did you mean that the cars here are truly premium?
-First, for the macroeconomic and social condition of Argentina. Whoever buys a premium car here is a person with a certain status and socioeconomic level. And apart from that, we configure the cars very focused on those segments. When the premium market shrinks, it is more premium than ever and that has always happened in Argentina.
-What role do the new financing options that have been appearing play?
-It is a very important point. Next year, just as mortgage loans begin to appear, financing will be another element in order to increase sales volumes.
