Argentina's production falls due to stagnant exports to Brazil
Sales decline 4% in January-July 2015 due to recession and inflation
In Argentina, the automotive industry has been affected by recession, inflation and a lack of foreign currency. It is also impacted by weak economy in Brazil, Argentina's top export destination. Besides, the Argentine government's protectionist measures exert influence on the automotive industry.
Argentine vehicle sales for 2014 decreased by 36.3% year-over-year (y/y) to 610,000 units while its production fell by 22.0% y/y to 620,000 units. Regarding sales, imported vehicle sales plunged due to the government's import regulations. Production dropped owing to slow import of automotive parts caused by foreign currency restrictions as well as sluggish sales in Brazil. Vehicle production and sales in the country continue to be slack into 2015. It is anticipated that a new administration to be inaugurated following the presidential election in October 2015 will introduce a policy such as the easing of the import restrictions to promote the automotive industry.
Brazil sales to drop 21% in 2015 due to weak economy (Sep. 2015)