Economy Local February 06, 2025

Increase in Automotive Production in Argentina

The Argentine automotive industry reported a 32.7% increase in production in January. Despite logistical challenges and declines in exports, growth is projected.


Increase in Automotive Production in Argentina

The Argentine automotive industry showed a significant increase in production during January, reaching 30,058 units, which represents a 32.7% increase compared to the same period in 2024. On the other hand, exports experienced a marked contraction, totaling 11,132 vehicles, with declines of 58.3% compared to December and 27.3% in year-on-year comparison.

In contrast, domestic sales demonstrated exceptional vigor, with 34,089 units distributed to the dealer network, reflecting an increase of 113.8% compared to January 2024, although it recorded a decrease of 31.1% in relation to the previous month.

The president of the Association of Automotive Manufacturers (ADEFA), Martín Zuppi, emphasized that despite interruptions due to maintenance and adjustments in various plants to incorporate new production lines, the sector's performance remains in line with growth projections for 2025.

Zuppi highlighted the importance of recent economic measures, such as the elimination of taxes considered distortive, which have been well received by the industry. He urged provincial and municipal administrations to join this tax reduction initiative to improve the competitiveness of the sector.

The automotive industry continues to focus on optimizing its competitiveness, paying special attention to the reduction of the tax burden affecting the production process. Despite the good performance, the production figure reflects a contraction of 20.9% compared to last December, mainly due to the summer recess.

The sector faces significant logistical challenges on the export front, especially in the availability of shipping, exacerbated by the substantial increase in domestic demand for locally manufactured vehicles. The long-term goal is to strengthen the export profile of the Argentine automotive industry and ensure its sustainability.