Significant Growth in Argentina’s Automotive Industry

Argentina’s automotive production surged to 42,419 units in February, a 41.1% increase compared to January, with significant export growth noted. Despite a small decline in year-over-year exports, wholesale sales rose substantially. ADEFA President Martin Zuppi credits tax reductions for this growth and advocates for local tax reforms to strengthen the sector further.

Argentina’s automotive industry experienced remarkable growth last month, achieving a production total of 42,419 units. This reflects a 41.1% increase from January and a 13.1% rise from February 2024, as reported by the Association of Automotive Manufacturers (ADEFA). Furthermore, exports rose significantly to 22,496 vehicles, marking a 102.1% increase from January, although they decreased by 4.6% compared to February 2024. Additionally, wholesale sales to dealers climbed to 45,617 units, which represents a 33.8% increase from January and a 37.3% surge over the same period last year.

In the first two months of the year, the automotive production totaled 72,477 units, indicating a growth of 20.5%. Meanwhile, exports during this same period declined by 13.5% to 33,628 units compared to early 2024. Sales figures for January and February totaled 79,706 units, illustrating a robust increase of 62.1% from the previous year.

ADEFA President Martin Zuppi attributed this robust performance to new tax reductions implemented by the national government. He encouraged provinces and municipalities to enact similar tax reforms to enhance competitiveness further. Given the layered tax structure in Argentina, reducing local taxes such as property and sales taxes could lower costs for automotive firms and enhance their export capabilities.

Zuppi remarked, “With 18 working days of activity and even with some plants in recess due to vacations… the sector recorded a good performance in line with what was anticipated last month.” He noted it is encouraging to see progress on collaborative agenda items with the authorities. Zuppi emphasized, “Any reduction in the tax burden generates an improvement in competitiveness and recovery of activity levels in all its variables.” He underscored the necessity of local governments participating to elevate the industry’s export profile and ensure its long-term viability.

The automotive sector in Argentina is thriving with significant production, export growth, and increased sales, largely attributed to favorable tax reforms at the national level. The industry’s outlook remains positive, contingent on continued support from local governments to enhance competitiveness and sustainability.

Original Source: en.mercopress.com