Zero KM vehicle production in Argentina to end 2019 with biggest drop in 14 years

The crisis in Argentina’s automotive sector is not limited to the sale of 0 km units alone. The industry in all its pillars is at its worst, and car manufacturing is falling so sharply that it compares to 2005 levels.

For 2019, production is expected to close at 320,000 vehicles compared with the previous year’s 466,649, a period in which production was already low, as 2017 had closed with 473,408 units.

These results were a “bucket of cold water” for a sector that, together with the Macri government, had planned 1m units by 2023.

To this end, the 2030 Strategic Plan for the automotive chain will be prepared, in which the private sector of the country will request a series of measures, such as tax reduction, withholding tax, and opening of foreign markets, to resume the growth path. The main objective is to promote the development of the sector and to declare it strategic for Argentine production.

The following chart, made by data from Adefa (Association of Manufacturers), shows the production, exports, and domestic sales of vehicles in Argentina since January 2011:

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