Brazilian vehicle exports to Argentina are expected to plunge this year, and the industry could face threats from rising imports following a free trade agreement between the European Union and Mercosur, a major industry body said.
The second month of the year marked another negative result for auto sales in Argentina, which dropped 28% compared to February last year, showing how the sector’s downward trend appears to have no end in sight. Only 41,998 vehicles were sold last month, according to the ACARA Argentine car dealership association, the lowest figure for the month since 2009.
One of Argentina's main industry leaders, Fiat CEO Cristiano Rattazzi. said that the boost of auto manufacturing during 2013 and record sales was fed on 'steroids' and demanded more reliability in the rules to revitalize sales.
The registry of new cars in Argentina soared 13.5% last year establishing a record of 955.203 vehicles, compared to 2012, and also above the 860.000 units of 2011, which was the standing record, according to the Argentine association of automobile dealers, ACARA.
Brazilian auto sales rose 2.9% to a record 3.4 million units in 2011, compared with the previous year, the daily O Estado de S. Paulo reported Tuesday, quoting industry sources.
Brazil’s central bank cut capital requirements for some consumer loans with maturities of up to five years, including car loans, as it seeks to fine tune measures taken last year to prevent excessive risk in the financial system.
Car sales in Brazil dropped 10% in October compared to the previous month according to the country’s dealers association, Fenabrave turning warning lights on for the global auto industry. This follows September’s decline that affected all of Brazilian industrial production.