Car production fell by more than 40% in June

Car production fell by more than 40% in June
Car production fell by more than 40% in June

The Argentine automotive industry felt the impact of the decline in sales and exports. Total production for the semester was 26.7% lower than in 2023

After a month with a drop in sales of zero kilometer units of 14.7% compared to May, and with a level of exports that has remained negative since January in relation to the previous year, the expected industrial report of the Association of Automotive Manufacturers (Adefa)confirms that the last month of the first semester has ended with worrying figures for automotive production targets in 2024.

Although in the middle of the month there were two consecutive weeks with holidays that Some factories took advantage of the situation to stop producing for five days straight.the drop in production in June cannot be attributed solely to this variable.

In June, 32,029 cars were manufactured, a 16.7% less than the previous monthwhich gives an average of 2,135 units per day across all plants. Meanwhile, in May, 38,440 vehicles were manufactured, which gives an average of 2,402 cars per day.

Compared to June 2023, The drop in production was greater and reached 40.2%since 53,522 units had been manufactured last year.

Domestic manufacturing was 40.2% lower than in June of the previous year

Adding up the first six months of the year, 216,736 vehicles were manufactured in Argentinanumber that shows a retraction of 26.7% compared to the 295,777 units produced in the same period in 2023. The relationship is worse than that of the drop in sales in the local market, where the period ended with a drop of 22.6 percent.

In terms of exports, June was also negative compared to May, going from 22,974 vehicles to 20,884 units, i.e. a decrease of 9.1%. The year-on-year comparison, meanwhile, was 10.3% negative.. However, in the sum of the six full monthsit was possible to recover one percentage point in relation to the trend shown the previous month, going from -17.7% to the current one 16.6% negative compared to 2023. The semester closed with 126,839 units and in June of the previous year a total of 152,044 vehicles had been exported.

“At the end of the first half of the year and as planned, the process of adaptation to the new economic context and the organization of the production programs of the terminals, which are reflected in the activity volumes of the period, continues,” he explained. Martin Zuppi, President of Adefa.

Exports fell 10.3% in June and the semester was 16.6% below the first six months of 2023

Although the drop in production in Argentine car factories is considerable, there are expectations of improvement for the second half of the year of the year, in which the announced measures to boost foreign trade activity and the expected ten-point drop in the COUNTRY TAXwhich currently taxes all imports of parts and inputs that form part of the components of national production.

In this regard, Zuppi said that “it is a time for redouble efforts and continue working together with the value chain and the government in a proactive agenda so that, along with the announced measurescreate the conditions to return to the path of growth as soon as possible.”

The other variable that is reflected in Adefa’s reports every month is that of Wholesale sales to the dealer networkIn June, the automotive sector sold 32,333 units, which indicates an improvement of 16.1% compared to deliveries in May, although it is still 26.7% lower than the volume for the same month last year.

The balance of the first half of 2024 In this item, it indicates that between January and June a total of 161,986 vehicles were sold to the network, a 21.7% less compared to the 206,861 units sold in the first six months of 2023.

 
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