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Argentina Auto Output Slumps 30% in January as Exports Slide and Dealer Deliveries Hold

Automakers cite fewer working days and plant retooling and are pressing for tax changes to regain export competitiveness.

Overview

  • Factories built 20,998 vehicles in January, down 30.1% year on year and 20.7% from December, with ADEFA calling for caution until first‑quarter data clarifies the trend.
  • Exports fell to 9,759 units, equal to 46.5% of output, dropping 51% versus December and 12.3% annually, with Brazil taking 58.7% of shipments.
  • Wholesale deliveries to dealerships reached 34,333 units, a 33.1% monthly drop but a 0.7% increase from a year earlier, underscoring a split between domestic supply and external sales.
  • ADEFA attributes the sharp start‑of‑year decline to three fewer working days and model changeovers, while industry leaders warn of structural pressures from taxes and rising import competition, including Chinese brands.
  • January marked the weakest production for that month since 2020, and officials signaled potential relief as the government says it is analyzing removal of the remaining 2% export duty on automakers.