October 8 — Chinese electric vehicle manufacturer BYD (比亚迪) officially announced the launch of its EV sales operations in Argentina today, marking a new phase in its strategic expansion across South America. The move benefits from Argentina’s new import duty exemptions for electric and hybrid vehicles and further consolidates BYD’s leading position in the region.
According to Stephen Deng, General Manager of BYD Argentina, the company’s initial lineup in the market includes the Yuan Pro all-electric SUV, the Song Pro plug-in hybrid SUV, and the Dolphin Mini compact EV—all priced below USD 16,000 before tax, targeting the mid-range mass market. These models will directly benefit from Argentina’s new policy allowing the duty-free import of up to 50,000 electric and hybrid vehicles by 2026. The Argentine government estimates that by January 2026, the total number of imported electric and hybrid vehicles will reach around 40,000 units.
Under Argentina’s current trade regime, automakers without local production facilities in the country or within Mercosur must pay a 35% tariff on imported vehicles. The new policy, therefore, significantly reduces import costs and presents unprecedented opportunities for Chinese carmakers entering the Argentine market.
At the launch event, Deng told Reuters: “We have long been optimistic about Argentina’s potential in the EV sector. This policy adjustment represents a major strategic opportunity for us.” He also revealed that BYD has received approval to import about 7,800 new energy vehicles into the country.
Industry analysts say the policy relaxation will particularly benefit Chinese manufacturers with clear cost advantages. Felipe Munoz, Global Automotive Analyst at JATO Dynamics, noted: “This could be a turning point for the market, as Argentina’s demand for EVs is on the verge of taking off.”
Argentina is currently the second-largest auto market in South America, behind Brazil, but EV penetration remains very low. JATO data show that from January to August 2025, 421,000 vehicles were sold nationwide, of which only 486 were electric or plug-in hybrids—less than 0.12% of total sales. Persistent currency volatility and high import costs have made EVs inaccessible to most consumers, who tend to favor locally produced combustion-engine vehicles.
However, recent data suggest a strong recovery in Argentina’s auto market, supported by tariff cuts and improved credit conditions. According to the Automobile Dealers Association of Argentina (ACARA), new vehicle sales nationwide rose 60.4% year-on-year in the first nine months of 2025. ACARA President Sebastian Beato said: “Despite exchange-rate fluctuations and political uncertainty, Argentina’s auto market has maintained remarkable resilience.”
BYD’s presence in South America has already taken shape. Following operations in Brazil, Chile, and Uruguay, Argentina becomes another key market in its regional strategy. BYD operates battery and vehicle manufacturing plants in Brazil and plans to establish a regional logistics hub in Chile by 2026. Its entry into Argentina is viewed as a pivotal step in building a South American “EV corridor.”
Nevertheless, BYD’s rapid global expansion also faces growing competition. As Chinese peers such as Geely Auto (吉利汽车) and Leapmotor (零跑汽车) accelerate internationalization, the global EV race is becoming more intense. BYD’s latest quarterly report showed its third-quarter vehicle sales declined quarter-on-quarter for the first time since 2020, signaling mounting competitive and market adjustment pressures.
Analysts note that BYD’s success in Argentina will depend not only on pricing and policy advantages but also on its long-term capabilities in charging infrastructure, after-sales services, and local operations. As South American countries accelerate their energy transition, BYD’s entry into Argentina may serve as a key indicator of how Chinese automakers will navigate and shape the Latin American EV market.