After the announcement by the Minister of Economy, Luis Caputo, in which he referred to cost reduction, this is how the sector would benefit.
He Minister of Economy, Luis Caputoannounced the reduction of import tariffs for tires, motorcycles and molds, with Decree 908/2024.
The reduction in tariffs especially benefits the personal mobility, starting with a reduction from 30% to 25% for tires from January 2025, until reaching 16% in September 2025. Although prices may still be higher than in neighboring countries, it is hoped that in the long term this will encourage local purchasing.
In the case of the motorcyclesthose of more than 500 cm³ experience a significant reduction from 35% to 20%while those with a smaller displacement (150 cm³) are not affected since they did not have a tariff.
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In addition, the “criterion value” for imports was eliminated, facilitating the entry of products at more competitive prices.
Reduction in tariffs for imports: how the measure will impact the prices of tires and motorcycles
The reduction of tariffs for molds and dies also will allow auto parts manufacturers to increase local productionsince previously it was more profitable to import finished parts. This change is considered crucial to improve the competitiveness of the automotive industry local, which depends largely on the import of components.
In Argentina, between 50% and 70% of car components are imported. To improve local production of auto parts, it is crucial to reduce manufacturing costs. Companies require presses and injection machines, but the use of specific dies and molds is essential for production. Due to the high cost of importing these items, companies chose to import finished auto parts instead of manufacturing them locally.
Juan Cantarella, president of the Association of Component Factories (AFAC)explained to Infobae that “lowering import tariffs on tooling from the 35% to 12.6% is a measure that has been requested for years from AFAC. With this change, a more rational tariff structure is generated, more equitable within the value chain, improving the possibilities of developing local auto parts. With the same level of investment it is possible to acquire more molds and matrices, both local and imported. This measure, added to the scheme of Repo stockimproves tariff equity for local production.”
Source: Ambito
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