MercoPress. South Atlantic News Agency

Production of motor vehicles in Argentina shows signs of recovery

Auto makers hope Mercosur countries reach an agreement soon regarding CETs, Herrero said

The production of motor vehicles in Argentina in June grew 14.5% compared to May's output for a total of 40,035 units, which made up for a 155.7% YoY increase against 2020 figures, it was reported Monday by the Association of Automotive Factories (Adefa).

According to Adefa data, 22,737 vehicles were sold abroad, 14.1% more than in May number, and 230.7% better than in June last year, while 28,187 units were placed in the domestic dealership network in June, a 0.6% contraction in comparison with May's data but 18.6% above the same month last year.

Thus, in the first half of 2021, a total of 193,580 passenger and utility vehicles were built, which is 123.9% more than the 86,439 units produced in the same period of 2020.

”The results of the first semester show the effort made with the entire value chain since we resumed operations after the quarantine (April-May 2020) to return to the path of growth despite logistical and health limitations at the international level,” Adefa President Daniel Herrero said.

Regarding foreign trade, 107,877 units were exported, 102.7% more than the 53,222 units sold in the first six months of 2020.

Herrero highlighted in this regard that the industry was waiting for the bill to be sent to Congress promoting new investments and the creation of the Mobility Institute which would encourage the sector to continue working together online with the “Vision 2030 that was diagrammed.”

Regarding the proposal to reduce Mercosur's common external tariffs (CET) and make international relations more flexible, Herrero said that the regional bloc was “very important to our sector” and therefore “we urge the governments to continue working to reach the necessary consensus to reach an agreement.”

Herrero once again praised the commitment of the companies to work together in the productive and commercial integration of Mercosur and in matters which bring about an improvement in regional competitiveness and in the generation of value to continue attracting investments and therefore more production, exports, employment and development of suppliers in the country.