Argentina’s electric vehicle (EV) market is undergoing a dramatic shift following the government’s decision in January to slash import tariffs on electric and hybrid vehicles. The move, led by libertarian President Javier Milei, allows up to 50,000 such vehicles to enter the country annually—a break from decades of protectionist trade policies that made Argentina one of the most closed automotive markets in Latin America.
The policy aims to lower the cost of EVs and accelerate their adoption in a country long held back by high customs duties and limited charging infrastructure. While foreign automakers and consumers are expected to benefit, local manufacturers are voicing concern over their survival.
“This open-market policy, without protective incentives for domestic production, will wipe out Argentina’s electric car industry and leave only imports,” said Juan Manuel Baretto, CEO of Coradir, the maker of Argentina’s locally produced EV, Tito.
Argentina has lagged behind its regional neighbors in EV adoption. Although hybrid vehicle sales have grown modestly in recent years, fully electric models have remained rare due to steep import taxes. Now, as fuel prices soar and economic pressures mount following a deep recession, consumers may turn to more affordable EV options entering the market.
“This year should finally be the one when electric vehicles take off in Argentina,” said Carlos Cristófalo, director at Motor1 Argentina. “We’ve finally secured a clear regulatory framework, and most of the cars that will benefit from this quota will be imported from China.”
Chinese automakers, especially BYD, stand to gain significantly. BYD has already made major inroads across Latin America—selling 77,000 vehicles in Brazil last year, over half of them fully electric—and is building a new factory there. In Mexico, it sold around 40,000 units in 2024 and plans to double that number in 2025.
“Today, it’s almost exclusively Chinese automakers driving the electrification of markets,” said Felipe Munoz, analyst at Jato Dynamics. In late January, BYD sent a delegation to Buenos Aires and the country’s lithium-rich northern provinces, signaling serious interest in expanding into Argentina. “Now imagine what will happen once they start producing them there. It’s going to be huge,” Munoz added. Argentina Cuts EV Tariffs, Welcomes Chinese Brands, Alarms Locals
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