Argentina expects an improvement in the automotive sector, with 75% more production in 2021
RIO DE JANEIRO, BRAZIL – Argentina’s automakers project to reach a production of at least 450,000 units this year, well above the 257,000 vehicles manufactured last year, according to official data released on Saturday, March 20th.
The production projections represent a 75% jump over the units manufactured in 2020, a year in which the Argentine automotive sector was hit hard by the covid-19 pandemic.
“This data, although not surprising because 2020 had a partial slowdown of the economy due to measures aimed at preventing the spread of the pandemic, shows a great recovery of the sector,” the Argentine government highlighted this Saturday in a report.
According to the Argentine authorities, the expected increase in local automobile production “is undoubtedly very positive as it will boost the domestic market and bring a recovery in the GDP, while encouraging the generation of employment”.
The automotive sector currently employs some 130,000 people and is one of the most important in the Argentine industrial fabric.
According to data from the Association of Automotive Manufacturers (Adefa), in 2020 Argentina produced 257,187 vehicles, which marked a drop of 18.3% compared to 2019.
Meanwhile, in the first two months of the year, Argentina accumulated a production of 46,117 vehicles, 1.5 % less than the 46,816 units produced by the sector in the same period of 2020.
In order to stimulate the sector, the Government of Alberto Fernãndez recently announced the submission to Parliament of a bill for the “promotion of investments in the automotive industry and its value chain”.
The initiative proposes the creation of a promotion regime with tax benefits for new investments in the automotive sector for the development of the entire production chain, from vehicles to automotive parts and pieces, and for the promotion of the acquisition of new capital goods, including infrastructure.
The bill also establishes the creation of the Institute of Mobility, an entity that will seek the articulation between the different links in the value chain of the automotive sector, the national government, workers and scientific support institutions.
In addition to promoting this law, the Executive reduced taxes on automobile exports. Last year, in the particular context of the pandemic, Argentine car exports plummeted by 38.5%, to a total of 137,891 units, according to Adefa data.
However, the official report released this Saturday highlights that “in general terms, Argentina exports to a total of 43 countries, for an approximate amount of 4,500 million dollars per year”.
Source: EFE
More: Latin America news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. The Rio Times also runs Ask Rio Times, which answers from 100,000+ of our own articles, the daily Latin America Power Map, and prediction-market odds on elections and markets.. How we use AI · Report an error