Argentina’s automotive sector reports a notable 41.1% growth in production, reaching 42,419 units last month. Exports increased by 102.1% compared to January, while wholesale sales also surged significantly. ADEFA attributes this progress to recent tax cuts and calls for local governments to enact similar measures to further bolster the industry.
Argentina’s automotive industry experienced remarkable growth last month, with production reported at 42,419 units—a 41.1% increase from January and a 13.1% rise over February 2024, according to the latest report from the Association of Automotive Manufacturers (ADEFA). Additionally, exports climbed to 22,496 vehicles, reflecting a 102.1% increase from the previous month, though this figure marked a 4.6% decline compared to February of the previous year. Furthermore, wholesale sales to dealers surged to a total of 45,617 units, signifying a 33.8% increase from January and a 37.3% rise from the same period last year.
In the initial two months of the year, production surged by 20.5%, reaching 72,477 units, while exports saw a decline of 13.5%, amounting to 33,628 units compared to the same period in 2024. Overall sales for January and February totaled 79,706 units, indicating an impressive growth of 62.1% from the prior year.
Martin Zuppi, President of ADEFA, attributed the strong performance of the sector to recent tax reductions implemented by the national government. He emphasized the need for provinces and municipalities to follow suit with similar measures to enhance competitiveness within the industry. In Argentina, the automotive sector is affected by tax levies at national, provincial, and municipal levels. By reducing local taxes such as property taxes or sales taxes, the operational costs for automotive companies could be diminished, thereby bolstering the industry’s export capabilities.
Zuppi noted, “With 18 working days of activity and even with some plants in recess due to vacations, as well as due to adaptation processes for new investments, the sector recorded a good performance in line with what was anticipated last month.” He affirmed the importance of collaborative efforts with authorities, stating, “It is positive to observe the progress in the agenda items we have been working on together with the authorities. Any reduction in the tax burden generates an improvement in competitiveness and recovery of activity levels in all its variables.” By urging local governments to align with these objectives, Zuppi highlighted their potential role in enhancing the export profile of the automotive sector and ensuring its long-term sustainability.
The data presented by ADEFA illustrates a revitalized automotive sector in Argentina, marked by significant increases in production, sales, and export activity, despite some challenges. The sector’s growth is closely tied to recent tax reductions; further collaboration among all levels of government may foster industry sustainability and enhance global competitiveness. Continued progress in tax policy could effectively support the long-term growth of automotive manufacturing in Argentina.
Original Source: en.mercopress.com
