Argentina DOC Reports

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Argentine Market For Automotive Aftermarket Accessories and Performance Equipment

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Argentina has a well-established domestic automotive industry that was started in the mid 1950’s through the importation of used plants and machine tools from the U.S. At present, nine OEMs are active in Argentina, producing automobiles and trucks of European design. In 1991, Argentina and Brazil signed the “Automotive Industry Cooperation Agreement” which allows for the integration of production but limits imports of automobiles and parts from third countries.

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Argentina Auto Industry Attracts More Investments

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Some automakers are transferring investments from Brazil to Argentina to benefit from lower production costs and the rapidly growing domestic market. This is exactly the opposite situation of what happened ten years ago, when the local currency was pegged to the dollar and investments were directed to Brazil.

 

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Argentina Automotive Industry Growth

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After experiencing a record 54 percent growth during 2004, the Argentine automotive industry grew by an impressive 23 percent in 2005. The increased output was mainly for export markets other than MERCOSUR. Export sales grew by 24 percent during the period and continue to be the driving force of the recovery. Additionally, sales in the domestic market have begun to recover and according to the Automotive Manufacturers’ Association (ADEFA) are expected to grow by ten percent during 2006.

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