Ford has dramatically reduced vehicle prices in Argentina, slashing costs by up to 18% after President Javier Milei took an axe to the country’s steep automobile taxes. The libertarian leader eliminated the first tier of the “luxury tax” entirely and cut the second tier from 35% to 18%, a move expected to boost sales and encourage investment in the struggling auto sector.

Several of Ford’s most popular models are now significantly more affordable. The Bronco Sport and Kuga Hybrid saw 15.5% price reductions, while the iconic Mustang V8 dropped 18%. Even high-performance and electric models benefited—the Bronco V6 is now 13% cheaper, and the all-electric Mustang Mach-E is down 8.5%.

But Milei’s reforms don’t stop there. In a bid to modernize Argentina’s vehicle market and encourage sustainable transportation, his government is also eliminating import tariffs on 50,000 low-cost electric and hybrid vehicles per year. This measure is expected to drive further price drops, making Argentina a more attractive market for global automakers.

Ford’s South America President, Martín Galdeano, has praised the shift, citing lower financing costs, rising wages, and tax cuts as key factors revitalizing the industry. With these reforms, Argentina’s auto market is poised for a major resurgence, potentially attracting more foreign manufacturers looking to expand their footprint in Latin America.