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After Milei Government Decision, Ford Announced an 18% Price Cut for Its Vehicles in Argentina
To mitigate the impacts of the economic crisis and stimulate sales, the government of Javier Milei announced a reduction in taxes for automobiles, a measure that will take effect next week. After the announcement, Ford responded by announcing a price reduction.
Tax Reduction for Vehicles
In an attempt to recover the automotive sector and alleviate the tax burden on consumers, the government of Javier Milei eliminated the 20% tax rate for vehicles priced between 41 and 75 million pesos (about R$ 231,000 to R$ 423,000).
Additionally, it reduced the tax rate applied to automobiles above this value from 35% to 18%. According to the Minister of Economy, Luís Caputo, these changes could lead to a decrease of 15% to 20% in vehicle prices.
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In addition to the tax reduction for conventional cars, the government also eliminated import tariffs for electric and hybrid cars considered low-cost.
Although the exact definition of this criterion has not yet been disclosed, the measure aims to encourage the transition to less polluting vehicles and broaden public access to new automotive technologies.
The motorcycle segment, essential for urban transport, will also benefit, reducing costs for consumers and boosting the market.
Ford’s Response
According to the Motor1 website, Ford was one of the first automakers to respond to the new landscape. The brand announced price reductions of up to 18% on certain models, immediately reflecting the new tax policy.
SUVs such as the Bronco Sport and hybrid Kuga will see a price drop of 15.5%, while luxury vehicles like the Mustang V8 could become up to 18% cheaper. The Mustang Mach-E, on the other hand, will undergo a smaller adjustment of 8.5%.
However, despite these reductions, Ford decided to implement a 2% price increase on models not affected by the previous luxury tax, such as the Ranger and Maverick pickups. This decision was justified by the impact of inflation in the country, which remains a significant challenge for the sector.
Other automakers are also expected to follow Ford’s lead, offering more competitive prices and taking advantage of the new economic environment.
The expectation is that the measure will help recover sales, which had slowed in recent months due to economic uncertainty and the high cost of vehicles.
Forecasts for the Sector
The Argentine government’s decision to reduce taxes on vehicles aligns with its strategy to revive the economy and restore competitiveness to the domestic industry.
According to experts, the positive impact could be felt in the short term, especially in the automotive sector, which is one of the pillars of the Argentine economy.
The president of Ford in South America, Martín Galdeano, praised the measure and emphasized that the reduction in the tax burden, combined with a more optimistic outlook and more accessible credit, could significantly stimulate the market. “A large part of the projected increase in sales is due to cheaper financing and government measures that bring dynamism to the sector. This is coupled with wage recovery and the greater purchasing power of the population,” said Galdeano.
With information from Motor1.
