Chinese brand negotiates assembly to order in Buenos Aires to avoid 35% tax rate in Brazil and balance bilateral agreement
BYD is studying the feasibility of producing the Shark medium pickup truck in Argentina, in a strategic maneuver to strengthen its operation in Latin America. According to journalist Horacio Alonso, executives of the Asian giant visited the Prestige Auto facilities in Virrey del Pino to evaluate an assembly line on demand at the site.
The move would be especially useful to get around the 35% Import Tax rate for vehicles coming from China, where Shark is currently made. In this way, it would be possible to reduce the price of the pickup in an attempt to make its sales very timid.
According to the journalist, the operation is driven by Daniel Herrero, former president of Toyota Argentina and a central figure in the success of the Hilux in the region. Today at the head of Prestige Auto, Herrero maintains a close professional relationship with Bernardo Fernández Paz, director of BYD, which would facilitate the technical alignment for the hybrid utility to receive the national production seal on Argentine soil.
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In addition to avoiding customs duties, the Argentine Shark would help balance the “Flex” mechanism, which adjusts how many cars Argentines can import based on what they export. Currently, the entry of BYD models produced in Brazil is limited by the lack of compensatory exports from Argentine soil to the Brazilian market. With the Shark, however, it would be easier for BYD to expand its presence in the country’s market through models made in Brazil.
Producing Shark through Prestige Auto also allows BYD to utilize an already consolidated infrastructure, drastically reducing the initial investment. With 430 hp, the plug-in hybrid model focuses on one of the markets most dependent on medium pickup trucks in the world. Thus, the Argentine plant would function as a regional hub for Shark, allowing the brand to fight for better positions in the segment with fewer barriers.
