Argentina’s car production up 27.2% and exports 25% in seven months of 2011

Thursday, August 4th 2011 - 06:25 UTC

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Brazil remains as Argentina’s main destination of car exports

Argentina’s car output increased 27.2% in the first seven months of the year and totalled 462,926 units, according to the Association of Automotive Factories (ADEFA). In July production soared to 70,628 units, increasing 22.6% to the same month last year.

Exports climbed 25% and the car dealership sales gained 35.1% year-on-year.

However car production in July slipped compared to June as car makers conducted maintenance and had some problems getting parts from Japan. The production dip from June was due to “scheduled shutdowns for vacations, plant maintenance and, in some cases, the lack of parts from Japan,” Adefa said.

Nevertheless the Argentine auto industry expects a record year for production and sales with 840,000 units expected to come off the assembly lines, Adefa said. That would handily beat the previous high mark set last year of 716,540 vehicles.

Exports in July were up a sharp 25% on the year at 46,248, but eased 1% on the month. During the first seven months of the year, 288,473 vehicles were exported, up 28.5% on the year.

Brazil takes 81% of Argentina's vehicle exports, while Europe is the destination of 7.8%. The solid exports come despite a trade spat with Brazil.

In May Brazil stopped granting non-automatic import licenses on a number of products, including automobiles and auto parts that can lead to delays at the border of up to 60 days. Though the measure didn't specifically target Argentina, it was widely viewed as retaliation for similar restrictions that Argentina imposed on Brazilian imports.