With the aim of boosting the growth of the automotive industry and strengthening vehicle mobility and electrification plans, the Colombian government and the automotive sector signed the “Pact for Automotive Industrialization and Sustainable Mobility in Colombia”.
The agreement establishes a roadmap to continue promoting sustainable mobility, with the local industry playing a leading role in the transition. To achieve this, it seeks to increase the productivity of the supply chain and the promotion of exports.
The pact seeks to lay the foundations so that assembly plants can make new investments with greater dynamism, in favor of technological transformation. It also aims to make operations carbon neutral, create new jobs, increase domestic production and strengthen the auto parts chain.
Actors Involved
The signing of the agreement was led by the President of Colombia, Iván Duque, who held important meetings with teams from Renault-Sofasa, GM Colmotores, among other assemblers, and with the Colombian Association of Auto Parts Manufacturers (ACOLFA). Among the guidelines of the commitment are goals to double foreign direct investment in the coming years and to promote electric mobility.
In addition to the incentives that the Duque administration has granted to the field of mobility during its term of office, the current pact includes tax measures to strengthen companies. These include a 100% VAT discount on capital goods, a 50% deduction in the ICA, the elimination of presumptive income and the non-existence of a corporate wealth tax.
According to President Duque, the signing of this memorandum is one more step within the state policy with the automotive sector. “This has been a work of several years where we want to give a message to the entire industry of our country, to foreign investment in this sector, to industrial transformation, to technological reconversion. This strengthens the commitment of the Colombian State”.
