Overview of the Current Situation
Argentina’s automotive assembly has experienced a 9.9% interannual decline, reaching 47,204 units in October, according to the Argentine Automobile Manufacturers Association (Adefa). This marks the fourth consecutive month of decline. In the first ten months of 2023, the sector has produced 426,447 vehicles, a 2.8% increase compared to the same period in 2024; however, this growth falls short of initial projections for the year.
Export Performance
Exports totaled 29,622 vehicles in October, a 12.1% increase from September but a 17.6% decrease compared to October 2024. Over the first ten months of 2023, exports have dropped by 10.3%. Brazil remains the primary destination for Argentine-made vehicles, accounting for 68.5% (157,074 units) of total exports and purchasing 25,452 fewer vehicles than in 2024.
Challenges and Future Prospects
Martín Zuppi, Adefa’s president and Stellantis Argentina CEO, highlighted the ongoing challenge of export dependency in the automotive industry. While national tax reductions have been implemented, Zuppi emphasized the need for provincial and municipal support to enhance competitiveness and secure new export markets outside the Mercosur bloc.
Factors Contributing to Decline
Several factors have contributed to the automotive industry’s downturn, including model line discontinuations, plant adaptations for new projects, and the termination of product cycles or industrial activities by companies like Nissan. However, the primary cause of the sector’s decline since July has been the shrinking export market.
Wholesale and Retail Sales
In wholesale, the sector sold 44,801 vehicles in October, a 17.4% monthly decrease but a 2.7% increase compared to October 2024. From January to October, automakers distributed a total of 500,021 vehicles through their networks.
Key Questions and Answers
- What is the current state of Argentina’s automotive production? Argentina’s automotive assembly has experienced a 9.9% interannual decline, with 47,204 units produced in October.
- How have exports performed? Exports totaled 29,622 vehicles in October, a 12.1% increase from September but a 17.6% decrease compared to October 2024. Over the first ten months of 2023, exports have dropped by 10.3%.
- What challenges does the automotive industry face? The industry faces export dependency, requiring support from provinces and municipalities to enhance competitiveness and secure new export markets.
- What factors have contributed to the industry’s decline? Factors include model line discontinuations, plant adaptations for new projects, and the termination of product cycles or industrial activities by companies. The primary cause since July has been the shrinking export market.
- How have wholesale and retail sales been affected? Wholesale sales totaled 44,801 vehicles in October, a 17.4% monthly decrease but a 2.7% increase compared to October 2024. From January to October, automakers distributed 500,021 vehicles through their networks.
