These are the hybrid and electric car models that will arrive duty-free in 2025

Last Monday, the first period closed for manufacturers and importers of hybrid and electric cars to submit their applications to the Secretariat of Industry and Commerce.

This process is part of the quota of 50,000 units that the government will allow to be nationalized without paying the import tariff.

A plan to reduce the price of 0 km cars

This program is one of the incentives that Javier Milei's administration has implemented to lower the price of new cars in Argentina. According to the president himself, the country has the most expensive vehicles in the region due to the high tax burden.

Among the measures adopted in 2024 to reduce costs and taxes are:

• Elimination of the internal tax for vehicles
• Reduction of the PAIS tax
• Exemption from the 35% tariff for the import of hybrids and electrics from countries outside Mercosur

To benefit from this measure, the cars must meet a key requirement: their FOB price (at the port of shipment) must not exceed USD 16,000.

Who could apply and how the quota works

The registration period was open from March 14 to 31, during which manufacturers, importers, and individuals completed a form detailing:

• Vehicle model
• Type and class of propulsion
• Number of units
• Date of arrival in Argentina
• FOB price and retail price (both in dollars)

The quota was divided into two parts:

• 25,000 cars for manufacturers grouped in ADEFA (Association of Automotive Factories)
• 25,000 cars for importers grouped in CIDOA (Chamber of Importers and Official Distributors of Automobiles)

Unofficial sources indicate that importers may have requested almost twice as many quotas as manufacturers, showing greater interest in taking advantage of this benefit.

Brands and models confirmed in Argentina

In this first stage, several brands have confirmed their participation in the program:

Manufacturers

• General Motors Argentina: will bring the Chevrolet Spark EUV
• Renault Argentina: will apply for the Kwid E-Tech and Arkana Mild-Hybrid
• Ford Argentina: will import the SUV Territory Hybrid
• Stellantis: will participate with two models:
  • Leapmotor C10 (SUV from the Chinese brand Leapmotor)
  • Fiat 600 hybrid

Importers

• BYD: the Chinese automaker will officially enter Argentina through its own subsidiary
• Grupo Belcastro (representative of BAIC in Argentina): will bring two models:
  • BAIC EU5 Plus (100% electric sedan)
  • BAIC BJ30 hybrid

Second bidding and selection criteria

Since the quota of 50,000 units was not completed, the government will open a second bidding in 30 to 45 days. This is because the import process, from production to nationalization, can take between two and three months, and the benefit expires in December.

In the coming days, the Government will allocate the remaining quotas considering two key variables:

• Delivery date to the user
• Lowest FOB price

Priority will also be given to vehicles whose gap between FOB price and retail price is smaller, thus ensuring that the benefit is reflected in the final consumer.

An opportunity to renew the automotive market

The duty-free import program seeks to reduce the prices of hybrid and electric cars, facilitating their access to the public.

With the arrival of new brands and models, Argentina could advance in the adoption of these vehicles, although the real impact will depend on how dealers pass the cost reduction to the consumer.