Automotive industry gains momentum

By Pittaluga Abogados

Uruguay has a vast experience in vehicle assembly and parts manufacturing, with several plants established in the country, both with national and foreign capitals. The automotive industry is considered one of the most globalized economic sectors in the world and Uruguay has gained significant momentum in the field, as more than 45 companies are currently operating in the country, several of which have been awarded international quality certification.

There are a number of trade and investment protection agreements in place that connect Uruguay with various countries. In particular, it can export to Brazil and Argentina at zero tariff rates, provided certain conditions are met. In addition, there are a series of legal schemes and regulations available (including free-trade zones and temporary admission) and VAT refunds for imported inputs. As a result, Uruguay has succeeded in attracting foreign companies that are producing and selling in the country, in addition to distributing their goods across the region.

The country has seen dynamic investment processes, with manufacturers such as Kia Motors, in the production of light trucks, and PSA (Peugeot – Citroën), in the assembling of Peugeot Expert and Citroën Jumpy utility vehicles since mid 2017. Other first-rate companies that have attracted investments are General Motors, Ford, Fiat, and other Asian manufacturers that have begun production in the country, thus opening up a market of 400 million people.