The largest exports of cars and auto parts will not pay withholdings in 2023

The Minister of Economy, Sergio Massa, announced the extension in 2023 of the reduction in the rates of export duties for the automotive sectora mechanism by which companies that increase their exports pay 0% withholdings for incremental sales abroad.

“In 2023, all the incremental exports of the automotive and auto parts sector will not pay withholdings, we are going to lower taxes on the growth of Argentine exports,” Massa announced in an act held at the Peugeot company plant in the Buenos Aires town of El Palomar on the occasion of the manufacture of unit 100,000 of the model 208.

“We believe that the way out of Argentina to accumulate reserves and improve our trade surplus is that we sell what we Argentines know best, which is Argentine work to the world,” Massa remarked.together with the Secretary of Industry and Productive Development, José Ignacio de Mendiguren.

Support to the value chain

Without mentioning the officials of the previous government, the minister maintained that “they argued that in reality the terminals and the value chain were not competitive and that, therefore, we had to have free importation of vehicles and also not give incentives to the production and export of national cars”.

In another vein, the head of the Palacio de Hacienda promised that “the abandoned tip of Campo de Mayo be transformed into an industrial park” and urged work on a complementation between the Peugeot plant and the railway, which could be used for the transport of the units produced by its proximity.

For his part, De Mendiguren stated that “this sector is an example of the development model we are building; Three years ago this sector had many difficulties and what was done was put together a strategic growth plan between businessmen, workers and the State”.

“The production and export figures are compelling. Today the Argentine automotive industry presents the highest levels of production since 2014 and has been creating jobs for 27 months in a row. It is an achievement of the entire value chain with the support of public policies”, projection.

De Mendiguren recalled that when Massa took office, it was “imperative to establish a fiscal and macroeconomic order; ninety days ago, who of us could set a price?”, he asked his industrial colleagues, but warned that “stability is not an end in itself, is the platform for growth.

“In 2023 all the incremental exports of the automotive and auto parts sector will not pay withholdings, we are going to lower taxes on the growth of Argentine exports”Sergio Massa

In this sense, he pointed out that “time” is being gained to undertake the real challenge that means “changing the productive matrix of Argentina” and, after assuring that “no industrial sector ended in 2019 better than in 2015”, he again raised to the industrialists if “after a stage in which the largest State rescue of the private sector was seen (at the beginning of the pandemic) someone can believe that we are going to abandon them.”

of the meeting the Argentine ambassador in Brazil, Daniel Scioli; the Undersecretary of Industry, Priscilia Makari; the undersecretary of Small and Medium Enterprises, Tomás Canosa; the institutional director of Stellantis, Rodrigo Pérez Graziano; and the general secretary of the Metallurgical Workers Union (UOM), Abel Furlán.

Pérez Graziano highlighted the joint work with the workers, the monitoring of the value chain by highlighting the role of suppliers and public policies for planning production and exports for the good performance of the company.

In his presentation, addressing Pérez Graziano, Massa stressed that the model presented “today is at 42% national integration” but that he expects it to “end 2024 with 50%, because we want more Argentine work in the cars we export.”

The automotive industry grew 27.8% in October, compared to the same month in 2021, the highest level of production since 2014 and, so far this year, exceeds the values ​​of 2015

“It is the demonstration that if we propose and align incentives, Argentines are capable of carrying out any epic that has to do with production and work,” he emphasized.

In this regard, he stressed that “for this it is important that in addition to being competitive, putting the effort of our workers, investing companies and putting talent and creativity, the State also promotes, that it intervenes promoting and developing the sector.”

“If the State does not provide, if it does not help, it is not enough,” he summarized.

Referring to the need to increase exports, Massa praised the ambassador in Brazil, Daniel Scioli, present at the event: “We need many Scioli, who when they go to another country open the markets so that we can sell many Argentine products to the world “.

On behalf of the UOM, Furlán pondered that Massa “had a hot potato” upon taking over as head of the Palacio de Hacienda and envisioned that “despite the difficulties, Argentina is definitely heading towards being a normal country.”

The outlook for the automotive sector

The automotive industry grew 27.8% in October, compared to the same month in 2021, the highest level of production since 2014 and, so far this year, exceeds the values ​​of 2015.

The use of installed capacity exceeds 65% (10.6 percentage points more than in September 2021) and is at the highest levels since at least 2016.

The units exported in October exceeded 44% those of the same period in 2021 and 93% those registered in the same period of 2019; Car exports are at their highest since 2014 and those of utility vehicles present a historical record for the period from January to September.

On the other hand, Argentina leads the growth ranking of the automotive sector with an increase of 30% in the period January-September of this year, compared to 2019 (pre-pandemic), higher than that of the United States (+0.2%). Germany (-22.3%) and Japan (-20.7%), and trading partners such as Chile (+17%) and Brazil (-13.2%).

Regarding investments, between January and October of this year, companies in the automotive and auto parts activity made announcements for US$ 280 million.

This industry performance also has an impact on job creation, it has been generating new jobs for 27 consecutive months; it exceeds 85 thousand registered workers linked to the automotive-auto parts sector.