Argentina raises the price limit for duty-free imported cars: pure electricity is relaxed to US$35,000, and the quota is still only 50,000 vehicles

Argentina has adjusted the threshold for the zero-tariff import mechanism for electric vehicles: instead of liberalizing imports, nor reducing the unified 35% import tariff, it has increased the upper limit on the price of vehicles that can enter quotas and enjoy zero tariffs...

According to the Argentine automobile information website "Derecho en Zapatillas", the Argentine government recently passed Decree No. 1128/2026 to adjust the threshold for the zero-tariff import mechanism for electric vehicles: it is not to liberalize imports, nor to reduce the unified 35% import tariff, but to increase the upper limit on the price of vehicles that can enter quotas and enjoy zero tariffs.

The decree was signed on September 29, published in the Official Gazette the next day, and willtake effect on October 1, 2026. The report described this change as "lengthening the invitation list but not really opening the door."

Under Argentina's current rules, vehicles produced outside MERCOSUR are in principlesubject to a 35% foreign import tax. In January 2025, Decree No. 49/2025 issued a five-year exception:up to 50,000 electrified vehicles per year can enter the Argentine market with zero tariffs. To use this discount, companies must first receive a quota and the vehicle must meet the price cap set at the time-previously unified at FOB 16,000 US dollars.

The so-called FOB refers to the FOB price when loading on board after leaving the factory, and does not include freight, insurance, port fees, statistical taxes, domestic taxes and dealer price increases. In other words, zero tariffs does not mean that the terminal selling price is "directly sold at foreign price."

After this adjustment, Argentina set the thresholds for different technical routes separately:

Pure electric vehicles (BEV):FOB cap increased from $16,000 to $35,000

Plug-in Hybrid (PHEV):Cap increased to $18,000

Ordinary Hybrid (HEV):Cap increased to $18,000

Light Hybrid (MHEV):Still maintained at US$16,000

The report pointed out that these caps apply not only to the import of complete vehicles, but also to models that have been assembled locally in Argentina after being imported with semi-spare parts or fully spare parts.

The Argentine government stated in its legal reasons that the system has worked "well" since its implementation, and that the supply of more efficient, longer battery life, and safer models in the global market is also increasing. The article analyzed that under the previous threshold of US$16,000, most of the ones that could really come in were low-priced China models; now the threshold for pure trams has been relaxed to US$35,000, and the brands and sources on the list will be significantly expanded. Tesla and other brands are considered to be among the representatives most likely to benefit.

But the report also emphasized that the total amount has not increased. The total annual quota of 50,000 vehicles remains unchanged, and there is no separate larger pool for all-electric models. In other words, although pure electric vehicles have received a higher price cap, they have entered the same "master plate", which means that a $30,000 pure electric car gets a quota, which will occupy space that might otherwise be reserved for cheaper hybrid cars.

From the perspective of the distribution mechanism, the Argentine government still conducts screening based on conditions such as the price declared by enterprises and the time of arrival in Hong Kong, giving priority to options withlower prices and earlier arrival in Hong Kong. Enterprises that receive quotas must also fulfill the promised quantity, time limit and selling price at the time of application. In the quota allocation last year and this year, the government allocated a total of 100,000 quotas, of which19,280 were allocated to complete vehicle factories and30,720 were allocated to importers. According to the official statement, 68,792 vehicles have entered the market, involving 58 models and 29 brands.

Industry insiders generally believe that the actual effect of this adjustment is more like"making high-quality pure trams qualified to enter the market" rather than generally reducing prices in the entire market. According to calculations by Argentine media, even if a car is exempted from a 35% tariff, the terminal price will still be superimposed on freight, insurance, port miscellaneous charges, value-added tax and internal taxes, and the final price will not return to the "overseas bare car price." The article cited as an example that even if an entry-level Tesla Model 3 enjoys zero tariffs, the landing price may still be around US$61,000.

The report also mentioned that Argentina has another special arrangement for vehicles of U.S. origin: in the economic and trade framework reached by the two sides in February this year,10,000 U.S. made vehicles per year werereserved to exempt from the 35% tariff, and there was no price limit., applicable to all forms of power. However, as of the end of September, this mechanism has not yet been really launched.

Regarding the next step, Argentina stated that the new price threshold will serve as a reference standard for the subsequent quota system. It is expected that the industrial department will soon announce a new round of application notices. At that time, the market will focus on three matters: whether to continue to divide quotas according to technical routes, how to allocate quotas by vehicle manufacturers and importers, and whether the final sales price promised by the company can be truly implemented.

written in the end

This adjustment will not help Argentina's second-hand car exports themselves, because the policy focus is still on new electric cars and compliance imports, rather than opening up to the second-hand car market. More realistic opportunities for China companies are still concentrated on the entry of new energy vehicles and brands, rather than traditional used car channels. In other words, the door in Argentina is indeed opened wider, but it is not on the used car side.

Source: Guangdong Good Car

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