Brazilian Car Exports to Argentina Soared in 2024

Despite political differences between the governments of Brazil and Argentina, Brazilian automakers not only maintained their strength in the neighboring market but also found an exceptional opportunity to expand their exports. In 2024, Argentina emerged as a lifeline for the sector, offsetting the sharp drop in sales to Mexico. Data reveals that for every five cars sold in the Argentine market last year, two were imported from Brazil, reinforcing a strong and promising trade partnership.

Over 166,000 vehicles were exported from Brazil to Argentina in 2024, generating $2.58 billion in revenue. This represents a 50% increase compared to 2023 and marks the highest volume recorded in the past four years. The value of exports also rose 60% year-over-year, reaching the highest level since 2018. The data, extracted from Comex Stat, the Foreign Trade Secretariat (Secex) system, highlights a significant recovery in Brazil’s automotive sector.

Argentina regained its position as the top destination for Brazilian vehicle exports, accounting for 40% of the total 398,500 units shipped. This performance surpassed Mexico, whose purchases dropped 25%, reducing its share to 24%. The revival of the Argentine market was driven by economic and industrial changes, including the reversal of the trade deficit and the injection of funds from the International Monetary Fund (IMF), which helped ease dollar shortages.

President Javier Milei’s government adopted measures to facilitate foreign trade, such as eliminating import licenses and removing taxes on foreign exchange transactions. These actions created a more favorable environment for Brazilian automakers, which took advantage of Argentina’s installed capacity to produce larger vehicles like pickups and sedans. At the same time, Brazil focused on compact, high-volume, and more affordable cars.

Despite growth in the automotive sector, overall Brazilian exports to Argentina fell 17.6% in 2024, totaling $13.8 billion. However, excluding soybeans, which experienced an atypical boom in 2023, the decline was reduced to 6.8%. The swift response to Argentina’s trade liberalization measures was crucial for automakers, allowing Brazil to consolidate its position as the country’s leading vehicle supplier.

The president of Anfavea, Márcio de Lima Leite, highlighted that the Argentine market showed a strong recovery in the second half of 2024 and is expected to continue growing in 2025, with projected sales exceeding 500,000 units. However, there are concerns about the potential entry of Chinese electric vehicles into Argentina after removing import duties on electrified cars. This policy shift could reshape trade dynamics in the future, but for now, Brazilian automakers remain optimistic about the current outlook.

Source: Jornal da Fronteira

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