Argentina’s automotive sector experienced robust growth in February 2024, with production reaching 42,419 units, a 41.1% increase from January. Exports climbed to 22,496 vehicles, though down slightly from February 2024, while wholesale sales surged. ADEFA President Martin Zuppi attributed this growth to recent tax reductions and called for further local government cooperation to enhance industry competitiveness.
Argentina’s automotive industry has experienced remarkable growth, with February’s production rising to 42,419 units. This figure represents a 41.1% increase from January and a 13.1% increase compared to February 2024, as reported by the Association of Automotive Manufacturers (ADEFA). Exports also saw significant growth, reaching 22,496 vehicles, which is up 102.1% from January but shows a decline of 4.6% when matched against February 2024.
Wholesale sales to dealers surged as well, totaling 45,617 units in February, marking a 33.8% increase from January and a notable 37.3% increase year-on-year. In the first two months of the year, production grew by 20.5% to a total of 72,477 units, whereas exports declined by 13.5%, equating to 33,628 units when compared to the same timeframe in 2024. January-February sales amounted to 79,706 units, reflecting a significant increase of 62.1% from the previous year.
ADEFA President Martin Zuppi credited the automotive sector’s strong performance to recent tax reductions implemented by the national government. He urged local governments to adopt similar measures, as Argentina’s tax structure encompasses national, provincial, and municipal taxes. Lowering local taxes, such as property taxes, local fees, or sales taxes, could further reduce operational costs and enhance the industry’s export capacity.
Zuppi remarked on the sector’s commendable performance, which was achieved despite some plants being temporarily closed for vacations and adjustments related to new investments. He emphasized, “With 18 working days of activity… the sector recorded a good performance in line with what was anticipated last month.” He also stated, “Any reduction in the tax burden generates an improvement in competitiveness and recovery of activity levels in all its variables,” underlining the importance of collaboration with provinces to promote the industry’s long-term sustainability.
In conclusion, the significant growth in Argentina’s automotive sector reflects a successful response to recent tax reductions, with commendable increases in production, exports, and sales. ADEFA’s leadership highlights the necessity for provincial and municipal cooperation to further enhance competitiveness and sustainability within the industry. Continuous efforts to diminish the tax burden are pivotal for fostering the sector’s growth and improving its export profile over time.
Original Source: en.mercopress.com
