Automotive sector

EXECUTIVE SUMMARY

• The automotive sector is one of the sectors that has shown the greatest momentum post-pandemic. In the 2021-2023 period, this sector accounted for an average of 21% of the total trade transactions within Mercosur.

• In Uruguay, the sector reached its highest level of vehicle production in 2022, with over 19,000 units produced, while the domestic commercialization of cars and light commercial vehicles reached an all-time high in 2023, with almost 57,600 units sold.

• Almost all of Uruguay's vehicle production is exported. In 2023, more than 16,000 units were exported, for a total of US$ 371 million. The main destinations were Brazil, Argentina and Chile.

• 2023 saw the highest value of exports from the auto parts sector in the last four years, reaching almost US$180 million. Virtually all of them were destined for Argentina and Brazil.

• Uruguay has a regulatory framework that promotes investments in the sector through tax incentives.

• Investments in the automotive sector in recent years highlight the strategic importance of our country's geographic location as a production and distribution center for the region, facilitating logistical operations and promoting a more favorable business environment.

• Since 2021, there has been a steady increase in imports and sales of electric vehicles. The first six months of 2024 saw a peak of 2,198 units sold, almost 8% of total sales.