Argentina Electric Vehicle Market Report, Size, Share, Opportunities, and Trends Segmented By Vehicle Type, Propulsion Type, Drive Type, Component, and End User – Forecasts from 2025 to 2030

Description

Argentina Electric Vehicle Market Size:

The Argentina Electric Vehicle Market is expected to witness robust growth over the forecast period.

Argentina Electric Vehicle Market Key Highlights:

• Import tariff reduction on electric and hybrid vehicles below a specific FOB value directly increases consumer access and drives demand for lower-cost electrified models.
• Hybrid Electric Vehicles (HEV) overwhelmingly dominate the domestic electrified vehicle segment, accounting for over 90% of cumulative sales and circulation due to Mercosur production advantages.
• Local lithium resources position Argentina as a critical global supply chain player, creating future industrial opportunity but currently providing limited domestic downstream manufacturing benefits.
• The government has eliminated bureaucratic hurdles like the National Registry of Charging Infrastructure, signalling a policy shift toward removing operational constraints for private sector development.

The Argentine Electric Vehicle (EV) market is currently undergoing a structural pivot, driven by targeted regulatory changes designed to decompress inflationary pressures and incentivize cleaner mobility adoption. While still a nascent sector with marginal overall vehicle penetration, the market exhibits rapid growth in its electrified segment, propelled primarily by imported Hybrid Electric Vehicles. The imperative for the automotive industry now shifts from merely introducing new models to establishing a viable, demand-side ecosystem encompassing infrastructure and localized production to capture the full economic potential presented by the country's extensive upstream material resources.

Argentina Electric Vehicle Market Analysis

• Growth Drivers

The primary market growth catalyst is the recent reduction of import tariffs (Extra-zone Import Duty) for hybrid, electric, and hydrogen vehicles, with a 0% rate applied to models under a Free on Board (FOB) value of US$16,000. This measure fundamentally lowers the purchase price for key entry-level electrified vehicles, immediately boosting consumer affordability and unit sales volumes. Secondly, the global surge in EV model availability facilitates demand by expanding consumer choice within Argentina’s limited domestic market, with imported Battery Electric Vehicles (BEVs) and Plug-in Hybrid Electric Vehicles (PHEVs) becoming more accessible following the elimination of the 35% tariff for a quota of 50,000 electrified vehicles.

• Challenges and Opportunities

A significant challenge constraining market growth is the underdeveloped charging infrastructure. The scarcity of charging stations, particularly fast-charging options, generates range anxiety and acts as a direct barrier to the adoption of pure BEVs in both public and private use cases, channelling most existing demand toward HEVs. Concurrently, a major opportunity exists in leveraging the country's substantial lithium reserves (part of the Lithium Triangle). This geological advantage presents an opportunity to establish a robust domestic battery and component manufacturing ecosystem, which, if realised, would reduce import dependency, stabilise costs, and stimulate local industrial demand for EV components.

• Raw Material and Pricing Analysis

Electric vehicles are physical products, making a raw material analysis crucial. Argentina holds a strategic global position in the upstream segment, accounting for approximately 22% of worldwide lithium resources. The nation's lithium brine projects, concentrated in provinces like Catamarca, Jujuy, and Salta, provide a competitive cost structure compared to global peers. However, the domestic EV market's pricing is currently influenced less by this upstream supply and more by the high cost of importing finished battery packs and vehicles, a constraint the recent tariff reduction aims to mitigate for lower-cost models. The price stability of locally sourced lithium carbonate primarily impacts the future commercial viability of domestic component manufacturing rather than the current end-user vehicle price.

• Supply Chain Analysis

The Argentine EV supply chain is characterised by a high dependency on imports for finished vehicles and critical components, such as battery cells, packs, and electric motors. Key logistics hubs are primarily located in Asia, particularly China, which supplies over 85% of the country’s electrified vehicle imports. While Argentina is a global lithium powerhouse, the current supply chain largely bypasses domestic midstream and downstream processing; raw lithium is predominantly exported for refinement and battery production abroad. This structure results in a demand bottleneck, where local sales growth relies heavily on global logistics stability and favourable import regulations.

Government Regulations

In-Depth Segment Analysis

• By Propulsion Type: Hybrid Electric Vehicle (HEV)

The HEV segment is the definitive volume leader in Argentina’s electrified vehicle market, accounting for over 90% of all registered low-emission light-duty vehicles. The need for HEVs is propelled by two distinct factors: the Mercosur production advantage and the vehicle's functional compromise. HEVs are the only electrified vehicle type with established manufacturing within the Mercosur bloc, specifically Toyota's production of the Corolla and Corolla Cross in Brazil. This regional integration mitigates the logistical and currency risk associated with importing full BEVs from overseas, resulting in relative price competitiveness and consistent supply. Furthermore, the HEV's reliance on a gasoline engine as a backup eliminates the public's current range anxiety in a country with limited public charging infrastructure, making it the most practical transition technology for private consumers. This dual advantage sustains strong demand even as the BEV model count increases.

• By End User: Private

The Private End User segment is the primary growth factor for EVs, encompassing both hybrid and pure electric passenger cars. This segment is acutely sensitive to the total cost of ownership (TCO) and convenience. The recent removal of the 35% import tariff on lower-value HEVs and BEVs directly reduces the initial purchase price—the greatest hurdle to private adoption—creating new demand from middle-class consumers. Additionally, selective local benefits, such as the exemption from registration fee payments in certain municipalities, further reduce TCO for private owners. This regulatory support, combined with a growing consumer desire for vehicles that offer lower operational fuel costs—a compelling factor in Argentina’s inflationary economic environment—drives the core passenger vehicle market toward electrified options, particularly those that offer a reliable refuelling experience.

Competitive Environment and Analysis

The competitive landscape in Argentina is bifurcated: established multinational automotive groups dominate the high-volume Hybrid Electric Vehicle market, while a growing number of Asian original equipment manufacturers (OEMs) and a few domestic startups compete for the emerging Battery Electric Vehicle (BEV) and micro-mobility segments. Competition is currently concentrated on maximizing import quotas and strategically pricing models to capture the benefits of the new tariff structure.

• Stellantis N.V.

Stellantis, through its brands, has committed to localizing electrified vehicle production. The company confirmed the manufacturing of Peugeot 208 and 2008 Bio-Hybrid models in Argentina. This strategy positions Stellantis not merely as an importer but as the first terminal to produce electrified vehicles domestically, primarily targeting the Brazilian export market. This focus on Bio-Hybrid technology, which integrates biofuels and light hybrid systems, capitalises on South America's ethanol infrastructure, providing a unique regional solution.

• BYD Auto Argentina S.A.U.

BYD has signalled its intention to capture market share through the formal establishment of its subsidiary, BYD Auto Argentina S.A.U. The company's strategy leverages its global expertise as a major BEV producer, focusing on the future import, marketing, and potential manufacturing of a broad range of electric cars, auto parts, and batteries. This formal entry prepares the ground for a direct market assault, challenging the HEV dominance by offering pure electric vehicles as infrastructure constraints gradually ease.

Recent Market Developments

• September 2025: Stellantis Confirms Local Production of Bio-Hybrids. Stellantis, the multinational automotive group, announced it would commence the production of Peugeot 208 and 2008 Bio-Hybrid models in Argentina. This milestone represents the first time an automaker has confirmed local manufacturing of electrified vehicles, with the initial output specifically destined for export to the Brazilian market.
• August 2025: BYD Establishes Formal Subsidiary in Argentina. The Chinese automaker BYD officially formed its local subsidiary, BYD Auto Argentina S.A.U. This move signals a significant strategic capacity addition, providing a formalized framework for the manufacture, import, marketing, and maintenance of electric vehicles, auto parts, and batteries within the country.

Argentina Electric Vehicle Market Segmentation

BY VEHICLE TYPE

• Passenger Vehicle
• Commercial Vehicle
• Others

BY PROPULSION TYPE

• Battery Electric Vehicle (BEV)
• Hybrid Electric Vehicle (HEV)
• Plug-in Hybrid Electric Vehicle (PHEV)
• Fuel Cell Electric Vehicle (FCEV)

BY DRIVE TYPE

• Front Wheel Drive
• Rear Wheel Drive
• All Wheel Drive

BY COMPONENT

• Battery Cells & Packs
• Onboard Chargers & Motor
• Brake, Wheel & Suspension
• Others

BY END USER

• Public
• Private
• Commercial

Table Of Contents

1. EXECUTIVE SUMMARY 

2. MARKET SNAPSHOT

2.1. Market Overview

2.2. Market Definition

2.3. Scope of the Study

2.4. Market Segmentation

3. BUSINESS LANDSCAPE 

3.1. Market Drivers

3.2. Market Restraints

3.3. Market Opportunities 

3.4. Porter’s Five Forces Analysis

3.5. Industry Value Chain Analysis

3.6. Policies and Regulations 

3.7. Strategic Recommendations 

4. TECHNOLOGICAL OUTLOOK 

5. ARGENTINA ELECTRIC VEHICLE MARKET BY VEHICLE TYPE  

5.1. Introduction

5.2. Passenger Vehicle

5.3. Commercial Vehicle

5.4. Others

6. ARGENTINA ELECTRIC VEHICLE MARKET BY PROPULSION TYPE  

6.1. Introduction

6.2. Battery Electric Vehicle (BEV)

6.3. Hybrid Electric Vehicle (HEV)

6.4. Plug-in Hybrid Electric Vehicle (PHEV)

6.5. Fuel Cell Electric Vehicle (FCEV)

7. ARGENTINA ELECTRIC VEHICLE MARKET BY DRIVE TYPE  

7.1. Introduction

7.2. Front Wheel Drive

7.3. Rear Wheel Drive

7.4. All Wheel Drive

8. ARGENTINA ELECTRIC VEHICLE MARKET BY COMPONENT

8.1. Introduction

8.2. Battery Cells & Packs

8.3. Onboard Chargers & Motor

8.4. Brake, Wheel & Suspension

8.5. Others

9. ARGENTINA ELECTRIC VEHICLE MARKET BY END USER  

9.1. Introduction

9.2. Public

9.3. Private

9.4. Commercial

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. Coradir S.A.

11.2. Volt Motors 

11.3. BMW AG

11.4. GreenGo Cars

11.5. Nissan  

11.6. Toyota Corporation

11.7. BYD 

11.8. Renault Group

11.9. Ford Motor Company

11.10. GWM Group

11.11. Mercedes-Benz

12. APPENDIX

12.1. Currency 

12.2. Assumptions

12.3. Base and Forecast Years Timeline

12.4. Key benefits for the stakeholders

12.5. Research Methodology 

12.6. Abbreviations 

Companies Profiled

Coradir S.A.

Volt Motors 

BMW AG

GreenGo Cars

Nissan  

Toyota Corporation

BYD 

Renault Group

Ford Motor Company

GWM Group

Mercedes-Benz

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