Argentina will eliminate the export tax on vehicles within a year, which could lead to lower prices for pickup trucks in Brazil.

Summary of the text

• Argentina is implementing a gradual decrease in the 4.5% tax on vehicle exports, reducing it by 0.375% monthly until mid-2027.
• Ford makes Ranger, Volkswagen produces Amarok, Toyota manufactures Hilux and SW4, while Stellantis produces Titano and Cronos in Argentina for export to Brazil.
• Renault has confirmed that production of the Niagara model in Argentina is happening, and it is expected to arrive in Brazil by September this year.
• Tax reduction could increase the appeal of pickups in the Brazilian market by lowering production expenses.
• Argentine manufacturers’ association supports the removal of local taxes imposed by provinces and municipalities on vehicles, amounting to 10% of their value.

Argentine vehicles sent to Brazil may gain a competitive edge starting in July 2026 as the Argentine government has started lowering the export tax on vehicles, with full elimination planned by July 2027.

The current rate on cars exported to international markets like Brazil is 4.5%. Under the new measure, this rate will decrease by 0.35 percentage points monthly until it reaches zero.

Cars imported from Argentina may become more affordable in Brazil.

According to specialist Milad Kalume Neto from K.Lume Consulting, the adjustment is not expected to lead to an immediate decrease in vehicle prices in Brazil.

The consultant’s assessment suggests that the market impact of the gradual tax decrease will also unfold gradually.

Today, companies such as Ford, Volkswagen, Toyota, and Stellantis produce different models in Argentina and send some of them to the Brazilian market.

Which models can receive advantages?

The Ford Ranger and Volkswagen Amarok are part of the pickup truck segment among the vehicles manufactured in the neighboring country.

Renault has also announced that it will manufacture the Niagara in Argentina. The vehicle is expected to be available in the Brazilian market by September, with pricing details still pending.

Toyota produces Hilux, SW4, and Hiace van in the nation, while Stellantis manufactures Fiat Titano, Fiat Cronos, Peugeot 208, Peugeot 2008, and RAM Dakota.

Price impact is assessed by specialists.

Tax reduction can be most beneficial for the picapes segment, according to Cássio Pagliarin, an expert at Bright Consulting.

The decrease in export prices is likely to enhance the competitiveness of these vehicles in the Brazilian market, as stated by him.

The consultant notes that it is premature to determine the extent to which consumers will benefit from this increase. Some manufacturers may opt to keep a portion of the savings as profit.

Manufacturers have the option to offer commercial bonuses or specific discounts to entice buyers, according to Milad Kalume Neto.

Industry experiences an increase in competitiveness.

ADEFA stated that the progressive decrease in the tax is a positive development for Argentina’s automotive sector.

The government timetable established by Javier Milei provides automakers with increased certainty to strategize investments, manufacturing, and exports, as stated by the organization.

The association mentioned that decreasing the tax burden enhances the competitiveness of the Argentine industry in both regional and global markets.

ADEFA contended that local taxes and fees from provincial and municipal governments are reduced, which could add up to 10% to the cost of exported vehicles.

• Economic situation
• Business
• Argentina
• automobile
• Javier Milei
• Automobile industry
• Toyota