The Argentine government has taken a significant step toward liberalizing the importation of electrified vehicles, creating a more competitive automotive market. The process began with Decree No. 49/25, which established a new category for electrified vehicles, allowing them to be imported without customs duties. This was followed by Resolution 29/2025, which enabled private individuals to participate in the annual quota of 50,000 hybrid or electric vehicles benefiting from tax exemptions. The regulatory framework was then introduced, detailing the procedures for both companies and individuals to apply for these quotas.
However, a significant obstacle remained: the issue of vehicle homologation. Some major automotive manufacturers and importers argued that private individuals could not homologate vehicles in Argentina. These claims, often made through anonymous sources in national media, sought to challenge the inclusion of individuals in this segment.
A Game-Changing Decree
On the morning of March 18, 2025, the government resolved this issue with Decree 196/2025, published in the Official Gazette. This decree modified National Traffic Law 24.449, introducing significant changes that simplify the homologation process, allowing private individuals to complete the necessary procedures themselves.
The decree streamlines the process for obtaining the two essential certifications required for a vehicle to be registered and legally driven in Argentina:
- Licencia de Configuración de Modelo (LCM) – Model Configuration License
- Licencia de Configuración Ambiental (LCA) – Environmental Configuration License
Previously, these certifications had to be obtained through the Ministries of Industry and Environment, often taking up to six months, with some extreme cases extending to 18 months. In contrast, other countries, such as Uruguay, allow homologation at the port upon vehicle arrival, while Chile completes the process within seven days.
Government’s Justification
Federico Sturzenegger, Minister of Deregulation and State Transformation, elaborated on the decree’s objectives:
“Decree 196/25, signed by President Javier Milei, Guillermo Francos, and Luis Caputo, facilitates vehicle and auto parts imports. Protectionist policies have resulted in outdated cars and expensive spare parts, contributing to road fatalities. By easing import regulations, we enable safer and more modern vehicles to enter the market. Serial imports will no longer require LCM or LCA if they hold internationally recognized certifications, reducing unnecessary state intervention. Additionally, individuals can now certify vehicle safety with a Vehicle Safety Certificate. Previously, even mass-market vehicles sold in the U.S. or Europe required redundant testing in Argentina, an absurd requirement given their prior approval in developed markets.”
A Common-Sense Approach
The newly published homologation rules introduce a practical approach: If a vehicle arriving in Argentina has already been certified by a United Nations-recognized body and complies with TRANS/WP29/343 international regulations, it is automatically authorized for circulation. The importer only needs to submit a form, provide valid safety and emissions testing documentation from other countries, and sign an affidavit confirming the vehicle’s technical specifications.
This policy opens the door for individuals to import a wide range of brand-new vehicles into Argentina. However, the first segment officially recognizing private individuals is the Resolution 29/2025, which allows them to bid for electrified vehicle quotas.
The Impact on the Market
Government officials across various sectors have expressed that this deregulation aims to stimulate competition within Argentina’s automotive market. By increasing the availability of imported vehicles, the government hopes to drive down the prices of new cars.
Will this initiative succeed? The foundation has been laid, and the regulations are now clear. The key to success lies in fostering a competitive and diverse market. After years of a closed, outdated, and often unsafe automotive sector, Argentine consumers deserve access to modern, technologically advanced, and reasonably priced vehicles.
From here on, it’s a matter of letting the best cars win in a truly open market.