While car making in Argentina went down 16.7% year-on-year in January, exports grew by 34.7%, according to a report released Monday in Buenos Aires by the Association of Automotive Manufacturers (Adefa). Domestic vehicle production reached 22,643 units last month during a total of only 11 working days due to the prolonged summer recess. It also represented a 38.8% decline from December's output.
However, the number of vehicles exported during January amounted to 15,302 units, a decrease of 29.8% compared to December but a 34.7% surge from January last year. The automotive industry also sold 15,942 units to local dealers, 36.4% less than in December and 27.9% less compared to the previous January.
As a result of the summer recess of most of the terminals, which lasted from mid-December to mid-January, added to seasonal and economic issues, the sector started the year with the main indexes down, said Adefa President Martin Zuppi.
”The exception was exports which, as a result of the improvement in shipments to Brazil (+131.04%), reached a share of 67.6% of production, reaffirming the sector's export profile, he added.
The measures implemented so far, such as the alternatives to face the commercial debt (Bopreal), the schedule for the flow of payments abroad for new imports, the exclusion of temporary imports from the PAIS tax, and the modification of the internal tax, among others, are signs that encourage to continue working together towards a short and long term agenda focused on sustainably improving the level of activity in time,” he also explained.