Cars in Argentina: a report reveals a 26% decrease in relative terms

The new cars dropped by 26.5% in relative terms between November 2023 and June 2026, according to a report prepared by the consulting firm Econométrica. The study attributes this decline to the elimination of taxes and increased competition in the automotive market.

The analysis, conducted by economist Ramiro Castiñeira, crosses the price index from Acara with the Consumer Price Index from INDEC. In this way, it compares the evolution of vehicle prices against the rest of the goods in the economy.

How the report on car prices was conducted

According to Econométrica, the work uses the vehicle price index developed by Acara and compares it with the inflation index published by INDEC.

The goal is not to measure the nominal prices of cars, but their evolution relative to the general price level. For this reason, the report speaks of a decrease in relative terms and not a nominal reduction in values.

What Econométrica concluded about new cars

The intersection of both indicators shows that new cars increased 26% less than the average of other goods between November 2023 and June 2026.

According to Ramiro Castiñeira, this means that new vehicles are now 26% cheaper in relative terms than they were three years ago.

What factors explain the relative decline of cars

The report states that one of the main reasons was the elimination of various taxes on vehicles since the assumption of the Government of Javier Milei.

Among the measures mentioned are the elimination of the PAIS Tax, the suspension of the first tier of internal taxes, and the subsequent repeal of all tiers of those taxes by Congress.

Econométrica also points out that the entry of new brands into the Argentine market increased competition, favored by tax advantages that allow some manufacturers to import vehicles without paying customs duties.

The example used by Econométrica to explain the difference

The consulting firm presented the case of a vehicle whose current price is $25 million.

According to the report, if that model had followed the evolution of the Consumer Price Index from INDEC, it would now have a value close to $32 million.

For Econométrica, this difference reflects the 26% relative decline that new cars have registered compared to three years ago.

What Econométrica said about dealer prices

The report adds that the difference would be even greater if, instead of list prices, effective sale values were taken as a reference.

According to the consulting firm, current transaction prices at dealerships are below the list prices published by automakers.