Argentina | Automotive Outlook 2022

Summary

The automotive sector has had an outstanding performance in 2022 despite the challenging context it faced due to shortages of imported inputs, global logistics problems and union conflicts. We expect domestic market sales in 2023 to be similar to those of 2022.

Key points

• Key points:
• Overall economic activity has performed better than expected during 2022. High inflation and the intricate FX policy encouraged the consumption of durable goods such as vehicles, allowing the industry to maintain a good performance.
• Automotive production has been challenged by the shortage of imported inputs, local union conflicts and global logistics issues. However, it overcame the manufacturing, export and domestic sales figures of 2021.
• The amount of wages required to purchase a 0km car increased 15% YoY, considering the parallel FX rate.
• The Investment Promotion Law for the automotive industry could provide a new incentive to this export sector. However, the risk factors that could harm the automotive market remain latent.
• We foresee 2023 to be similar to 2022 in economic terms and we expect sales to dealers to remain at around 400,000 units.

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