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Montevideo, September 21st 2018 - 08:11 UTC

Argentine 2011 car sales in domestic market set to establish a new record

Saturday, February 4th 2012 - 05:31 UTC
Full article 38 comments
Argentine consumers flock to buy cars for protection from runaway inflation Argentine consumers flock to buy cars for protection from runaway inflation

Argentine auto sales rose 8.2% in January from a year earlier to 112,607 units, the car dealers’ association Acara said in an e-mailed report on Friday. January’s sales were 43.5% more than December’s, the report said.

“There's a high chance of this year surpassing the record set in 2011” Acara said. Total sales for 2011 hit a record 857,983 vehicles, up 30% on the year.

Argentine consumers have been flocking to buy cars and trucks. The economy grew 9.2% last year with unemployment reaching multi-year lows, according to official data.

But inflation, which most private-sector economists said surpasses 20%, also explains some of the demand for cars as Argentines continued to pour cash into durable goods amid run-away inflation.

Historically, Argentines buy real estate and consumer durable goods like cars to protect the purchasing power of their savings during times of high inflation.

Argentina is one of few countries where consumers can buy new cars and often sell them, years later, for a profit.

However car production only reached 42.011 units in January, 10.5% lower than the volume registered in the same month in 2011, according to ADEFA, the manufacturers association. Exports totalled 26.344 vehicles, dropping 27.7% year-on-year.
 

Categories: Economy, Argentina.

Top Comments

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  • Helber Galarga

    Gee.... and the journal the economist (much like yankeeboy [I know the irony that someone from the USA speak of economic crisis is just *facepalm*]) has been predicting an Argentine economic market crash for 7 years now!!!

    My advice is whatever the IMF and the World Bank advice, do the exact opposite and you cannot go wrong.

    Feb 04th, 2012 - 06:06 am 0
  • ChrisR

    1 Helber Galarga

    Have you even read this article because you have demonstrated a stupifying lack of understanding of what is going on in your own country?

    What are you doing with your money (assuming you have some spare money) now that inflation is very near 30% (out of the mouth of Old Smooth Neck herself)?

    That is why cars are flying out of the showrooms. It's called 'distress purchasing' because buyers are frightened of what will happen to the economy and their money if they do not buy something that will last and retain some value.

    Unfortunately, this spree will come to a grinding halt (they always do) when the 'panic' money has gone. 'Cash for clunkers' in the USA and a similar scheme in the UK brought out scenes of euphoria in the car trade of both countries only to be follwed by months of poor sales to businesses only, all the private sales had been 'brought forward'.

    But don't believe me, just wait a few months and you will see for yourself.

    Feb 04th, 2012 - 10:30 am 0
  • Helber Galarga

    All I know mate is that the British journal the economist (like some loonies here) has been forecasting an economic crisis for the past not ONE or TWO or THREE YEARS, but for F*** SEVEN YEARS.
    How F**** wrong can you be to get it wrong for seven straight years????

    *facepalm*

    Feb 04th, 2012 - 01:21 pm 0
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