Crisis in Argentina affects exports of Brazilian auto parts

The political and economic situation in Argentina has landed a blow in the Brazilian automotive industry, affecting exports of auto parts between the two nations. According to Sindipeças, sales to Argentina plunged by 23.3%. In May alone, there was a 24.1% reduction in exports, totaling $677.9 million compared to $893.4 million in the same month the previous year.

From January to May 2024, auto parts exports amounted to $3.2 billion, a decrease of 15.9% compared to $3.8 billion during the same period the previous year.

Regarding imports, there was a 3.2% increase up to May compared to the same period the previous year, with total sales of $8.3 billion. In May, auto parts imports totaled $1.7 billion, a 3.6% drop compared to $1.8 billion in the same month the previous year.

It’s worth noting that the cumulative decline in exports in 2024 remains in the double-digit negative range. Conversely, imports continue to rise, with an average growth rate of around 4.0% to 5.0% until May.

The trade balance deficit was $5.1 billion up to May, 20.2% higher than the same period the previous year ($4.3 billion). In a monthly comparison, the deficit in May 2024 was 17.5% higher than in the same month the previous year.

Source: Novo varejo automotivo

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