However, automotive companies expect a recovery in demand towards the second half of the year. based on the expectation of an improvement in the purchasing power of salariesthe rearrangement of prices, the decline in inflation and the reappearance of credit.
In this scenario, the high tax pressure that 0km endure is a critical issue for the sector. The cars have a tax burden that ranges from 58% of the value of a vehicle to more than 100%in the cases of models that are reached by the second scale of Internal Taxes.
For this reason, companies are demanding that tax relief be advanced for the industry so that this benefit is passed on to the public.
The president of Nissan Argentina, Ricardo Flamminiis one of the managers who, in recent days, He called for reducing the tax pressure on the automotive market.
He did so during the presentation of the company’s financial results and launch and production plans. Among the new features are more versions of the national Frontier pickup, the new Kicks that would arrive next year and the project of a compact pickup that will be produced in Córdoba, within the framework of the alliance it has with the French Renault.
The statements of Ricardo Flammini, president of Nissan Argentina
Regarding the market prospects, the opening of imports, the release of dollars by the Central Bank to pay foreign suppliers within the expected deadlines, Flammini pointed out that “we are confident that it will go well, but we have to see how it evolves.” the flow of payments. First, I don’t know the size of the market we are going to have.. Second, in this mix of market and payments, we must grow responsibly. You have to be careful not to get caught. Do not bring more one model than another. You even have to look at the tax issue. Most cars are covered by Internal Taxes. That needs to be reviewed.. I give an extreme example. We launched the X-Trail e-POWER at $30 million in July last year. Today it is worth $110 million. I’m not going to talk about profitability, but now it is very bad. That price, measured in dollars, is a lot of money. How much is tax? 75%?
Q-: From what you say, it is understood that today it is not attractive to import cars.
RF: Definitely not. In this it must be taken into account that We are talking about profitability when we still have the stock of debt that was left. US$95,000 million were recorded. Some 8,000 million are from the automotive industry.
Q-: It refers to the debt left by the previous government by not releasing dollars to pay for imports.
RF: Exact. You have to think about that in terms of how much the average investment is worth to file a new product. Let’s put about US$600 million and compare it with the US$8,000 million that remained in debt as of December 10 of last year. We must not forget about that because it affected all the terminals a lot and let’s not even talk about what it means for the value chain. Together we have helped sustain production and help suppliers so they can continue producing. When you put all that puzzle on the table you see that there is still a long way to go, but we are doing well.
Q-: You mentioned that the profitability is very bad. However, prices have risen sharply in recent months.
RF: If we look at what is happening in the market, transaction prices went down. You have to see the whole business. What I mentioned about debt. We had a lot of pesos, but now we need three times as many pesos to pay the debt we have left. We had to help suppliers pay their debts abroad. That money is no longer there. Therefore, when talking about profitability, something has to change. That is why I talked about reviewing the tax structure because they are not giving the numbers.
Source: Ambito
I’m a recent graduate of the University of Missouri with a degree in journalism. I started working as a news reporter for 24 Hours World about two years ago, and I’ve been writing articles ever since. My main focus is automotive news, but I’ve also written about politics, lifestyle, and entertainment.
