According to the sector’s own actors, the tax burden applied to the automotive industry is the true This is why new cars are so expensive. This is something that in recent months all the executives of the terminals that produce vehicles in Argentina have repeated without pause.
“When it comes off the production line, A car manufactured in Argentina has between 25 and 28 percentage points of taxesand we have to sell them abroad competing with factories in Brazil that have 12% or in Mexico that have zero,” is what has been heard as a reference.
Although the situation is historical, since the assumption of the government of Javier Milei The problem was magnified for two reasons: the devaluation and consequent loss of purchasing power of buyers, and the increase in COUNTRY Taxwhich had been established by Sergio Massa in July 2023 with 7.5% on any input, auto part or finished vehicle that entered Argentina, and which increased to 17.5% in December.
The national automotive industry does not produce 100% of the parts that make up a vehicle, but rather less than half. Generalizing, the local integration of parts could be considered approximately 30% and the regional integration close to 60%. Translated to the impact of the increase in the PAIS tax, it could well be said that a 50% of the components of a nationally manufactured car, are reached by that 17.5% increase from December 2023.
But not all cars have the same tax burden. Vehicles used for work such as medium and compact pick-ups and medium and small cargo vans They pay 10.5% VAT instead of 21%, and they do not pay internal tax either. known as the luxury car tax paid on cars and SUVs.
For this reason, beyond a cultural question of taste for “chatas” that leads the user to buy them or choose them over other types of vehicles in a greater proportion than in other countries with similar characteristics, Argentina currently manufactures five trucks one ton and three vansand in the next two years it will incorporate other pick-ups in both categories, all of them in the province of Córdoba, by Stellantis and society Renault/Nissan.
By having fewer taxes, it is also possible to measure the price behavior that have tended in this first half, with six price lists that remained much quieter than those of conventional cars and popular SUVs.
The reference is toyota with his hiluxthe best-selling truck on the market, which between January and June had a 9% price increase in the most accessible double cab version, both in single drive and 4×4, while in the high range, the SRX, the percentage increase was lower, only 5 percent. The Toyota Hilux DX DC 4×2 with manual transmission is also the most accessible in the category with a price of 33,501,000 pesos.
Following the order according to sales, ford was one of the brands that increased twice in January, first recovering the delay of not having updated the price of Ranger in mid-December as its competitors did after the devaluation, and then applied a new smaller increase at the end of the month of 13.5%. Between February and June, on the other hand, the increase was 2.3%, which led the brand to end the semester with a increase in its national truck of 15.8%. In the high range, the XLT, had increased 9% until April, but in May the price dropped and remained stuck at the same value with which it started in February. The Ford Ranger XL 4×2 with manual transmission has a price of 35,100,000 pesos.
Volkswagenthe third major competitor in trucks of 2023, increased the access and mid-range line, the Amarok Trendline and Highline both in single and double traction with manual transmission, in a 16% between January and June. Meanwhile, when reaching the most equipped versions, the Black Style, this increase was smaller, 11%, something that is possible because these models have a greater profit margin and allow price to be absorbed when the market does not move as much. The most accessible Amarok is the Trendline 4×2 version with manual transmission with a price of 37,598,500 pesos.
nissan is the fourth player that manufactures and sells the most pick-ups in the local market with its Frontier. Although it shares the Santa Isabel plant with Renault, the profile of one brand and another is different in its bid to gain ground in the segment. The Nissan Frontier S, the entry to the range, increased by 15% in the semester, while starting with the XE with automatic transmission, in the middle of the Frontier line and until reaching the Pro4X, the increase was smaller, reaching an average of 10%. The most affordable model is the Nissan Frontier S 4×2 with manual transmission, with a price of 34,379,400 pesos.
Renault, for its part, made the decision not to increase prices according to the versions, but to apply uniform increases to the entire model. Alaskan range. Between January and June, the increase was 22% for models with single-wheel drive and manual transmission up to the Iconic 4WD AT. The most accessible model offered is the Alaskan Comfort 4×2 with a manual transmission in 35,271,900 pesos.
The other pick-up that is sold in Argentina is the Chevrolet S10which however has another condition since it is imported from Brazil, with which you pay in full the PAIS tax of 17.5% on the price. Because of this, the increase was greater than that of its competitors, reaching 28% in six months for the lowest versions, and 10% in the most equipped ones. The access version of the Chevrolet S10 with double cabin, single-wheel drive and manual transmission has a price of 34,989,900 pesos.
The case of Renault serves to take another reference with the Kangoo, the van that leads the market and competes with Peugeot Partner and Citroën Berlingo. In this category, they also maintained the same policy as with pickup trucks, increasing prices between 22 and 23% for the basic versions with the 1.6 gasoline engine and the dCi 1.5 diesel. The most accessible Kangoo is the Confort with a gasoline engine and a price of 27,700,000 pesos.
Your competitors Stellantisthe other two that are manufactured in Argentina, increased by 17.5% between January and June with the same pricing policy for both brands, since the vehicle is basically the same with different insignia and groups of optics and grille. He Peugeot Partner and the Citroën Berlingo The most affordable vans with HDI diesel engines are priced in 22,180,000 pesos.
As a final reference, something that can be compared more precisely when the Indec numbers are known around July 18, the internal wholesale price index (IPIM) for the automobile category recorded an increase of 35.9% in five monthswhich would show that without the internal tax that affects cars and SUVs, and with a proportion of imported parts of approximately 50% that pay PAIS tax, the increase in Utility vehicles manufactured in Argentina was well below the absolute ratesince while those that increased the most did so by close to 22%, Argentine-made passenger cars increased in the same period between 43 and 47 percent.
