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example, a Chevrolet Cruze, which in the United States has an MSRP of $18,400, is sold in Uruguay for $35,000. A Honda Civic LXS, which in the United States has an MSRP of approximately $20,000, is sold in Uruguay for $40,000. The Ford Focus SE, which in the United States has an MSRP of $19,000, is listed in Uruguay at $32,000.
The current (CIF) tax structure for the importation of new, gasoline-powered vehicles is as follows (duties for diesel-powered vehicles are higher):
22% Value-Added-Tax (VAT)
23% Import tax (for cars not manufactured in MERCOSUR or México)
110% (IMESI Tax) for diesel-powered vehicles of any capacity
2% Consular Tax
Variable: Dispatch costs, dealer commissions, and importer profits.
Market Trends & Demand
The Uruguayan automotive sector experienced unprecedented growth at the beginning of this decade when foreign investments were consolidated in both vehicle assembly and auto parts manufacturing. The investments were lured by MERCOSUR-related preferential treatment provisions, which in many cases did not materialize as planned. Despite the adverse climate of previous years, in 2017 the sector showed encouraging signs, such as the reactivation of Lifan's engine and the assembly line of cars, and the production of Peugeot and Citroën´s utility vehicles for regional distribution (under preferential MERCOSUR tax treatment). The industry in Uruguay produced approximately 2000 cars in 2017 with most exports going to Brazil. About one hundred companies produce auto parts shipped to Argentina 46 percent, Brazil 41 percent, Germany, Venezuela, and Poland.
Electric cars are starting to hit the market though mainly for use by state-owned entity fleets (such as the power company), and in an experimental stage for public transportation (mostly buses and taxis). Chinese and French manufacturers have led the way in introducing electric vehicles to the market and may constitute an interesting niche for U.S. automakers. To date, there are minimal offerings in the e-vehicle segment for private-sector consumers.
The government deters the use of diesel-powered vehicles through heavy taxes on both imports and the cost of fuel.
market trends