Local automakers lose nearly half their market share in three years, while Chinese vehicles see rapid expansion
Three years after Argentina liberalized its automobile import rules, the market share of domestically made vehicles has nearly halved, slumping from 65% down to 34%. Imports from countries outside South America have surged to account for 25% of total sales, with Chinese vehicles taking up 14% of the overall market to secure Argentina's top spot as the leading source of non-South American imported cars. This dramatic market shift stems from relaxed import controls and sweeping tax reforms.
Notably, broken down within the 25% share held by non-South American vehicle suppliers:
China: 14% (approximately 32,100 units)
Mexico: 5% (approximately 11,700 units)
European Union: 2.7%
South Korea and Thailand combined: 1.2%
The data confirms China has emerged as one of Argentina's most vital automotive suppliers outside the South American region.
50,000 Tariff-Free NEV Import Quota Marks a Critical Turning Point
The second half of 2025 stood as a watershed moment for Argentina's automotive sector. The country rolled out an annual tariff exemption quota covering 50,000 new energy vehicles. Previously, vehicles imported from outside South America were subject to a 35% import tariff, yet a large batch of Chinese electric vehicles entered the Argentine market duty-free thanks to this policy. Coupled with eased foreign exchange controls that simplified currency purchasing procedures, sales of imported vehicles surged dramatically. New energy vehicles have become the core growth track for Chinese automakers to capture market share across Argentina.
Broader Import Access Expected in the Coming Period
A raft of preferential auto trade policies have taken effect in Argentina. Imports from the European Union enjoy a 50% tariff cut for an annual quota of 10,000 vehicles, while the United States will be granted an annual tariff-free allowance of 10,000 cars. Meanwhile, Argentina's trade agreement with Mexico is pending renewal. Against this backdrop, the market share of imported automobiles is projected to keep climbing.
Local automakers are facing severe operational headwinds. Domestic vehicle output slumped 19.3% year-on-year in the first five months of 2026, primarily due to local market erosion by surging imported vehicles.