La Derecha Diario After the Tax Reduction, Vehicle Sales Soar by up to 65%
New car sales have already surpassed 16,000 units by mid-month, potentially reaching a new record.
After a record January, with almost 69,000 transactions and a year-on-year growth of 103.4%, the Argentine automotive market continues to go through a period of adjustments following the elimination of the PAIS tax and the reduction of the 75% internal tax.
These modifications have impacted prices and caused positive expectations among consumers, although many are postponing purchases in anticipation of new decreases in March or April.
Impact of tax changes on sales
While the reduction of the internal tax mainly benefited higher-value vehicles, which represent a 35% of the market, the Government's intention to continue with measures to lower prices creates uncertainty among buyers.
According to a sales manager at a Buenos Aires dealership, showroom traffic has decreased in recent weeks due to rumors about new price reductions and the possible expansion of the tax-free electric car quota. This could be leading some consumers to delay purchases until new provisions are known.
Even so, by mid-February, new car sales had already exceeded 16,000 units, indicating that the month could close with more than 40,000 registrations. The last week of the month usually sees an increase in transactions, driven by the commercial objectives of the brands.
Toyota and Volkswagen: the competition for leadership
January had an unusual event: Toyota was surpassed by Volkswagen in new car sales, with a difference of 1,100 units. However, in February, Toyota has regained the top spot with 3,393 units sold, while Volkswagen has accumulated 3,124.
The rest of the brand ranking shows:
- Fiat with 2,056 units
- Peugeot with 1,525
- Chevrolet with 1,432
- Renault with 1,180
- Ford, Citroën, Jeep, and Nissan with less than 1,000 units each
The best-selling models in February
Regarding models, the Toyota Hilux leads again with 1,293 units, followed by the Fiat Cronos with 1,096 and the Peugeot 208, which closed 2023 as the best-selling car, with 952 units.
The rest of the top 10 is completed by:
- Volkswagen Amarok - 916 units
- Toyota Yaris - 775 units
- Chevrolet Tracker - 641 units
- Volkswagen Taos - 629 units
- Toyota Corolla Cross - 616 units
- Ford Ranger - 600 units
- Volkswagen Polo - 528 units
Outlook for the automotive market in 2024
The Argentine automotive sector continues to evolve in a context of changes in the tax rules and expectations of new price reductions.
As new policies are defined, buyers are evaluating the best time to purchase a vehicle, while automakers adjust their commercial strategies to maintain sales momentum in an increasingly dynamic market.
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