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Date: February 20, 2025
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By Mobility Portal
Latin America

Argentina Eases Vehicle Imports: Impact on EV Market?

The Argentine government announced the easing of mass vehicle and auto parts imports, a measure aimed at streamlining processes and reducing costs for the automotive industry.

The measure streamlines the entry of electric models, crucial for a market that depends on foreign supply. The automotive sector supports the decision and anticipates a positive impact on availability and costs.

The Argentine government announced the easing of mass vehicle and auto parts imports, a measure aimed at streamlining processes and reducing costs for the automotive industry.

The decision, communicated on Tuesday, February 18, 2025, by presidential spokesperson Manuel Adorni, was welcomed by the sector, which views it as a step toward market modernization and dynamization.

During his press conference at Casa Rosada, Adorni explained the key changes that will govern mass vehicle imports.

“Mass vehicle imports will now be facilitated. From now on, they will no longer require a Model Configuration License (LCM) or an Environmental Configuration License (LSA) if they have internationally recognized certificates,” stated the spokesperson.

Additionally, he clarified that auto parts imports will be freed by eliminating the requirement for the Safety Auto Parts Homologation Certificate (CHAS), a prerequisite that had previously slowed the process.

“None of these changes, of course, affect safety,” the official emphasized.

The removal of these requirements aims to reduce bureaucracy in the homologation of vehicles and auto parts from abroad, especially those from markets with high-quality and safety standards.

As a result, faster availability of imported models and more options for Argentine consumers are expected.

The Automotive Sector’s Perspective: A Logical and Necessary Measure

From the Argentine Automotive Commerce Chamber, Secretary Alejandro Lamas supported the measure and explained its impact on the local market. In an interview with Mobility Portal Latinoamérica, Lamas addressed the influence of LCM and LSA on Argentina’s vehicle homologation process.

“The Model Configuration License ensures that, in the country, for a vehicle to be approved for circulation and registration under our regulations, it must go through a series of steps proving it is suitable,” he explained.

Regarding the Environmental Configuration License, he specified that this certification assesses vehicle pollution levels to ensure compliance with international standards. Under the new government regulation, models approved in developed markets can circulate in Argentina without undergoing additional local procedures.

The sector representative called the measure “absolutely reasonable and intelligent” since “if certain models are approved in the world’s most developed markets and meet the requirements of the Model Configuration License and Environmental Configuration License, they should automatically be approved here.” He concluded: “This speeds up the process.”

Meanwhile, from the Association of Automotive Manufacturers (ADEFA), officials stated that the measure “aligns with ongoing efforts by the Industry Secretariat to simplify and streamline processes.”

“Homologation processes previously took over six months in some cases. Now, individuals can validate imports under the same requirements as manufacturers,” ADEFA representatives noted.

Lamas explained that the easing of restrictions will particularly impact vehicles from non-Mercosur markets, including Canada, the United States, South Korea, Japan, Germany, Italy, and China:

“With 50% of vehicles being domestically produced and the other 50% split between Mercosur and non-Mercosur imports, this change is clearly more relevant to non-Mercosur imports.”

The business representative estimated that the share of non-Mercosur vehicles in Argentina currently stands at no more than 15%.

ADEFA was slightly more optimistic, stating that the decision “does not change industry operations”* since “imported vehicles account for approximately 60-70% of registrations.”

Key Boost for Argentina’s Electric Vehicle Market

The easing of vehicle import restrictions has a direct impact on the electric mobility sector, a market in Argentina that almost exclusively relies on imported models. Currently, there is no domestic production of electrified vehicles, except for the Toyota Corolla and Corolla Cross, along with two TITO S2 and S2 AA models. Until BYD’s factory in Brazil begins operations, the Mercosur region will remain without local manufacturing of such vehicles.

In this context, the government’s measure could be a turning point for EV adoption in Argentina. By removing local homologation requirements for models with international certifications, a greater supply of imported electric vehicles is expected, reducing entry times and potentially lowering associated costs.

Previously, LCM and LSA procedures were obstacles that increased costs and delayed electric model arrivals, impacting their availability and affordability for consumers.

Most electric vehicles in Argentina come from non-Mercosur markets, mainly China and Europe. With the new import flexibility, the arrival of next-generation models with better range and advanced technology will be facilitated, offering a wider variety of options, including urban cars, SUVs, and electrified commercial vehicles.

Additionally, lifting restrictions on auto parts imports could also benefit the development of EV charging infrastructure and maintenance. Essential components such as batteries, chargers, and energy management systems could enter the country without previous hurdles, strengthening the electric mobility value chain.

This import liberalization aligns Argentina with international standards and addresses a key need for sector growth. While developed countries advance with incentives and regulations favoring electromobility, Argentina’s removal of bureaucratic barriers could be a push toward a more sustainable vehicle fleet.

In a market where demand for efficient and high-tech vehicles is rising, the sector expects this measure to mark a turning point in Argentina’s import strategy. The impact on competitiveness and consumer offerings remains to be seen, but for now, industry reactions are positive, and the outlook appears promising.

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