Zero-tariff new energy quotas are in full swing: China has become Argentina's third largest source of cars

The share of imported cars sold in the Argentine market from outside South America has rapidly climbed to 25%, with China becoming one of the fastest growing source countries...

According to the latest analysis by the Argentine media, the import opening policy that has been continuously promoted since 2024 is profoundly changing the pattern of the Argentine automobile market. Data shows that in the first five months of 2023, 65% of new cars sold in the Argentine market were locally manufactured; by the same period in 2026, this proportion has dropped to 34%. At the same time, the share of imported cars from outside South America quicklyclimbed to 25%, with China becoming one of the fastest growing source countries.

Industry insiders believe that the core reason for this round of changes is not a single factor, but the result of the combined effect oftax reform, the removal of import restrictions and duty-free quotas for new energy.

The share of domestic cars has shrunk by nearly half in three years, and China cars are expanding rapidly

Reports show that in 2023, the Argentine market will still be dominated by locally manufactured models. In the first five months, a total of 184,000 new cars were sold, of which 120,000 were locally produced, accounting for 65%; imported cars from Brazil accounted for 28%; and imported cars from other countries and regions accounted for only 7%.

At that time, the sales rankings were almost monopolized by locally produced models, with models such asFiat Cronos, Peugeot 208, Toyota Hilux and Volkswagen Amaroklong occupying the forefront of the market.

However, with the gradual liberalization of import restrictions after the new government takes office in 2024, the market structure has begun to change. Especially in 2025, after Argentina abolished some internal taxes and PAIS taxes, the growth of imported cars accelerated significantly.

By the first five months of 2026, Argentina has registered a total of 232,800 passenger cars and light commercial vehicles. Among them, locally manufactured vehicles account for 34%(approximately 79,000 vehicles), vehicles originating from Brazil account for 41%, and vehicles originating from other countries account for 25%. Compared with three years ago, the market share of local cars is close to halving.

What's even more noteworthy is that among 25% of vehicles of non-South American origin:

China accounts for 14%(approximately 32,100 vehicles);

Mexico accounts for 5%(approximately 11,700 vehicles);

The EU accounts for 2.7%;

South Korea and Thailand together accounted for 1.2%.

This means that China has become one of Argentina's most important non-regional sources of cars.

The duty-free quota of 50,000 new energy vehicles has become an important turning point

The report believes that the time point for the real change in the market structure will occur in the second half of 2025.

The Argentine government previously approved a duty-free import quota for 50,000 hybrid and pure electric vehicles, and allowed related vehicles to enter the market one after another. A large number of new energy models have begun to enter Argentina with zero-tariff status, and a considerable number of them come from China.

Prior to this, under the ACE14 agreement signed between Argentina and Brazil, cars from countries outside the region were usually subject to a 35% import tariff. Therefore, duty-free quotas for new energy actually open an important channel for China cars.

At the same time, Argentina's foreign exchange controls have been gradually relaxed, making it easier for importers to obtain foreign exchange, which has further promoted the growth of imported cars.

For China auto companies, this round of policy changes has directly brought about an increase in market share; for export companies interested in deploying the Argentine market in the future, new energy models have become one of the most important growth directions.

The future import window will continue to expand

The report pointed out that Argentina is promoting more trade arrangements. Among them: preferential quotas for Europe will take effect in 2026, with a quota of 10,000 vehicles in the first year, andtariffs will be halved to 17.5%; the United States is also expected to launcha zero-tariff quota of 10,000 vehicles per year this year; the automobile trade agreement with Mexico is expected to be updated in the next few months.

If all these arrangements are implemented, there will be room for further improvement in the proportion of imported cars in the Argentine market.

However, for the local automobile industry, the pressure is also increasing simultaneously. Data shows that Argentina's automobile production in the first five months of 2026 fell by 19.3% year-on-year, much higher than the decline in exports. This means that the biggest impact at present is not exports, but the continued erosion of local market share by imported cars.

written in the end

The Argentine market is undergoing an obvious process of "importing instead of domestically produced", and China cars are one of the biggest beneficiaries. For China's auto exporters, the most noteworthy thing is not the current market share of 14%, but the policy direction has changed: import thresholds have been lowered, the foreign exchange environment has improved, and new energy enjoys special channels. In the next few years, Argentina may become one of the most noteworthy incremental markets in South America. However, what needs to be noted is that the current growth mainly occurs in the new car sector, especially new energy products. For used car exporters, it is more important to continue to pay attention to Argentina's subsequent changes in vehicle access, vehicle age restrictions and import policies, because these factors will determine whether a real used car import window will emerge in the future.

Source: Guangdong Good Car

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