MercoPress. South Atlantic News Agency

Argentina's automotive industry forecast to bounce back this year

“With a clear strategy and concrete measures, 2025 looks like a favorable year for the automotive industry,” Zuppi hoped

Argentina's carmaking industry posted a 17.1% contraction in 2024, with an output of 506,571 units, a report from the Association of Automotive Manufacturers (ADEFA) released this week showed. Nevertheless, production is expected to reach 600,000 units this year.

Last month alone, 38,018 units were built, which represented a 29.2% decrease from November and a -2.8% interannual variation. Meanwhile, exports amounted to 26,667 vehicles, 17.3% less than in November, but up 22.3% year-on-year.

On an annual basis, exports totaled 314,735 units, down 3.4% from 325,894 units exported in 2023. In contrast, wholesale vehicle sales grew by 1.1%, with 411,406 units sold to dealers, compared to 406,940 units the year before.

ADEFA President Martín Zuppi said 2024 was “a challenging year” but in the light of the suppression of the so-called PAIS tax and other measures detrimental to foreign trade, a recovery is forecast. “These measures, together with investments of more than US$ 1.7 billion, allowed the sector to close the year with results higher than expected,” he argued.

Zuppi also highlighted the positive growth of exports in December. “The export business model reaffirms the sector's long-term sustainability,” he stressed.

ADEFA foresees growth between 10% and 15% in the main indicators by 2025, driven by improved supply, greater access to credit, and increased plant productivity.

In December, automakers sold 49,462 units to dealers, 23.3% more than in November and 97.3% higher than in the same month the previous year, which helped offset part of the drop in production and exports.

“With a clear strategy and concrete measures, 2025 looks like a favorable year for the automotive industry,” Zuppi hoped. (Source: Ámbito)