The president of the French automaker highlighted the importance of expanding the Incentive Regime for Large Investments in Argentina (RIGI). Renault has chosen San Juan province in Argentina as the setting for launching the new Kardian, an SUV representing a significant brand transformation. This model introduces a new platform, engine, technology, and design, beginnin a series of global launches until 2027.
Renault’s Commitment to Electromobility in Argentina
Pablo Sibilla, president of Renault, took the opportunity to discuss the brand’s expectations and the impact of the Incentive Regime for Large Investments in Argentina (RIGI) on the Argentine automotive industry. Sibilla emphasized that the new Kardian platform allows “any vehicle built on that platform to be hybrid.” This technological advancement paves the way for increased production of electric and hybrid vehicles in Argentina. This is an essential step for the country in its goal to remain competitive in an increasingly electromobility-focused global market.
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Expanding RIGI for the Future of Electromobility
In this context, Sibilla underscored the urgent need to expand the Incentive Regime for Large Investments in Argentina to promote electromobility in Argentina. Currently, the regime needs to fully address the sector’s needs, limiting the potential growth and development of the local automotive industry.
Sibilla revealed that Renault is in talks with Javier Milei’s government to integrate electric and hybrid vehicles into the Incentive Regime for Large Investments in Argentina, aiming to incentivize production and investment in clean technology. “Brazil launched the Mover plan, which attracted significant investments in electrification. We believe Argentina must implement similar measures to avoid falling behind in local vehicle manufacturing in 5 or 6 years,” Sibilla explained.
The Impact of “Impuesto País” and Future Tax Reforms
In addition to the update of the RIGI, the Renault president also discussed the impact of the “Impuesto País” on vehicle prices. The possibility of a 10% reduction in the tax, announced for September, might not be fully reflected in consumer prices since many dealership vehicles have already paid this tax. “If the tax decreases, the percentage will not be fully transferred to final prices,” Sibilla clarified. Despite this, he highlighted that any reduction in the tax would positively impact the sector’s competitiveness, although the effects might not be immediate.
Sibilla also emphasized that a general reduction in taxes would improve the competitiveness of the Argentine automotive industry, not only for domestic sales but also for exports. “The elimination of the 10% Impuesto País is a major change. It will affect car sales in Argentina and our export capacity,” Sibilla stated. He added that Javier Milei’s government aims to gradually reduce taxes as the economy and revenue allow, which would benefit the automotive sector.
Renault’s Future Plans and the Role of RIGI
Finally, Sibilla assured that the Kardian marks the beginning of a new era for Renault, with an investment plan extending until 2027. He also hinted that new models and the Niagara pickup truck will be announced before the end of the year. With this transition, the French automaker Renault hopes to lead the push toward greater electrification in the Argentine market, solidifying its position in the industry and responding to the growing demand for electric vehicles.
The Incentive Regime for Large Investments in Argentina: A Key Economic Driver
The Incentive Regime for Large Investments in Argentina, or RIGI, is a central initiative introduced by Javier Milei’s government in Argentina to attract substantial private investments to stimulate economic growth. This program is designed to encourage large-scale investments across various sectors by offering significant incentives to investors. Critical features of the Incentive Regime for Large Investments in Argentina include tax breaks, streamlined regulatory processes, and other financial incentives that make it more attractive for companies to commit significant capital to projects in Argentina. By setting a high minimum investment threshold, the regime ensures that only large projects with the potential to impact the economy significantly are eligible. The overarching goal of RIGI is to modernize Argentina’s infrastructure, create jobs, and drive long-term economic development, positioning the country as a more competitive destination for global investment.
The Broader Impact of RIGI on Argentina’s Automotive Industry
The resurgence of Renault’s €300 million project in Argentina underlines the pivotal role of the Incentive Regime for Large Investments in Argentina in revitalizing the nation’s automotive industry. As Renault embarks on a new era of electrification and innovation with the launch of the Kardian SUV, the company’s collaboration with Javier Milei’s government to expand RIGI demonstrates a shared vision for a competitive and sustainable future. By embracing clean technology and reducing tax burdens, Argentina is poised to attract more significant investments, enhance its industrial capabilities, and strengthen its position in the global automotive market. The success of RIGI in driving such substantial projects serves as a testament to the potential of well-crafted economic policies to catalyze growth and transform key industries.