The economic opening has revived the discussion about competitiveness, prices, and tax pressure in the Argentine market, dividing local manufacturers, auto parts makers, and importers. The Chamber of Importers and Official Distributors of Automobiles (CIDOA) argues that opening the market could reduce costs, increase revenue, and create jobs, but local manufacturers fear the consequences for national production.
According to a recent CIDOA report, the opening of the automotive market could be beneficial by reducing taxes and increasing competition through imports. However, the auto parts sector faces a significant deficit, largely due to the increase in imported parts. Local manufacturers express concern about the impact of greater opening on the continuity of plants and the thousands of workers in the sector.
The Association of Argentine Component Manufacturers (AFAC) reported a 6% decline in auto parts sales in the last year, reinforcing the need to maintain competitiveness against the protection of the local industry. In this context, the Argentine automotive sector faces the challenge of finding a balance that allows it to maintain its competitiveness, adapt to the demand for modern vehicles, and protect local employment and industry.
CIDOA states that in 2023, the sector's trade deficit reached 8.7 billion dollars, arguing that assembling vehicles with imported parts results in a greater cost in foreign currency than importing them fully assembled. The chamber also criticizes transfer pricing practices between manufacturers, advocating for greater competition and price reductions to improve revenue and generate more jobs in sales and after-sales services.
Importers advocate for greater openness to reactivate competition and provide access to more technologically advanced vehicles at competitive prices. In contrast, local manufacturers, grouped in ADEFA, question the accuracy of the information presented by CIDOA, claiming that the negative trade balance is smaller and warning about its potential impacts on the Argentine automotive industry and the country's trade balance.
The debate between opening and protecting the local industry in the Argentine automotive sector raises the need to find a balance that ensures efficiency and technological modernization, guaranteeing competitiveness, employment, and the autonomy of the national industry.
