Argentina’s automotive sector witnessed significant growth in February with production reaching 42,419 units, a 41.1% increase from January. Exports totaled 22,496 vehicles, although down 4.6% from February 2024. Wholesale sales also surged to 45,617 units, displaying a robust 33.8% rise from January. ADEFA’s President attributed this success to recent tax reductions, urging local governments to implement similar measures for enhanced competitiveness.
Argentina’s automotive sector experienced notable growth last month, producing 42,419 vehicles, a 41.1% increase from January and up 13.1% compared to February 2024. The Association of Automotive Manufacturers (ADEFA) released a report indicating that exports surged to 22,496 units, marking a 102.1% rise from January but a slight drop of 4.6% from the previous year. Additionally, wholesale sales to dealers saw a significant spike, totaling 45,617 units, which represents a 33.8% increase from January and a 37.3% increase year-over-year.
In the year’s first two months, production saw an overall growth of 20.5%, reaching 72,477 vehicles, while exports faced a decline of 13.5% for the same period, totaling 33,628 units. Sales for January and February combined hit 79,706 units, reflecting a substantial increase of 62.1% compared to the prior year.
Martin Zuppi, President of ADEFA, credited this robust performance to recent tax reductions implemented by the national government. He emphasized the need for provinces and municipalities to follow suit by reducing local taxes, enhancing competitiveness further. In Argentina, taxes impact various levels—national, provincial, and municipal—suggesting that lower property taxes and local fees could enhance the automotive industry’s export potential.
Zuppi remarked on the sector’s success despite some plants halting operations due to vacations and adaptation processes for new investments, stating, “the sector recorded a good performance in line with what was anticipated last month.” He highlighted that any reduction in tax burdens could improve competitiveness, ultimately bolstering activity across all areas within the sector. Zuppi reiterated the importance of local governments collaborating to enhance the industry’s long-term sustainability and export capability.
The recent growth in Argentina’s automotive production and sales is attributed to favorable tax reductions at the national level and calls for similar initiatives at local levels. Despite a decline in exports, overall production and domestic sales saw significant increases. ADEFA’s president stresses the importance of these measures for enhancing competitiveness and the need for local governments to play a supportive role in sustaining this growth.
Original Source: en.mercopress.com
