Key facts
- Buenos Aires is hosting its first Chinese auto show on Friday.
- Chinese brands accounted for 10% of car sales in Argentina in August, up from 2% late last year.
- BYD is the ninth best-selling car brand in Argentina since launching in late 2025.
- Over 20 Chinese brands will be present at the auto show.
- Toyota Motor will invest $1.34 billion to develop an EV plant in Argentina.
- President Javier Milei is unconcerned by the growth of Chinese automakers.
Buenos Aires is hosting its first Chinese auto show on Friday, signaling a shift in Argentina's automotive market under President Javier Milei. The country is moving away from protectionism towards a more open and competitive environment, which has led to a surge in Chinese car brands.
Chinese brands are increasingly entering the Argentine market, bolstered by a measure that will allow up to 50,000 electric and hybrid vehicles to enter without tariffs in 2026. In August, these brands captured 10% of the car and light commercial vehicle sales, a significant increase from approximately 2% at the end of last year. BYD, a Chinese electric vehicle maker, has become the ninth best-selling car brand in Argentina since its launch in late 2025 and leads electric car sales in several other Latin American countries.
The auto show will feature over 20 Chinese brands, including Geely, Chery, GWM, and Dongfeng. Sebastian Beato, president of Argentina's auto dealers’ association ACARA, noted that the rapid growth of Chinese brands is spurring the local industry to develop new models, such as the Renault Niagara pick-up truck. However, he warned that the national industry must transform to avoid producing obsolete cars.
Globally, Chinese automakers are expanding across Latin America, prompting some markets like Brazil and Mexico to implement tariffs to protect domestic manufacturing. Despite this, Argentine President Javier Milei, a libertarian, has expressed indifference to the rapid growth of Chinese automakers, including BYD, and does not believe it will jeopardize his relationship with the United States. "What Argentines buy is the problem of Argentines," Milei stated.
Car sales in Argentina have seen a 13% decline year-to-date, attributed by analysts to a market adjustment after strong growth fueled by lower trade barriers in the previous year, compounded by high interest rates deterring consumers from car loans. Economist Andres Civetta suggests the Argentine auto industry should focus on pick-up trucks, an area where the country has a strong export position and currently faces less competition from Chinese brands. Fernando Rodriguez Canedo of the association of car factories welcomed Milei's reduction of national export duties and urged provincial governments to lower local taxes to enhance competitiveness.