More than 0 km are produced in the country, but cars are lacking in dealerships and they are increasingly expensive
Automotive production last year exceeded the pre-pandemic level -the end of 2019- and grew 69% compared to 2020 -the worst year of the restrictions due to the covid-, But 0km cars are still in short supply at dealerships and prices skyrocketed due to lack of supply, outpacing the rise in the dollar and the inflation index.
The production data, and especially exports, were celebrated today by President Alberto Fernández, and the Minister of Productive Development, Matías Kulfas, who received the authorities of the Automotive Manufacturers Association (Adefa) and the Mechanics Union and Related of Automotive Transport (Smata) in Casa Rosada. In addition, from the manufacturing data, the businessmen informed Fernández that exports grew 89% compared to 2020. They also indicated that they expect to increase production by 28.3%, and exports by 34.3% this year.
“They are auspicious numbers, the automotive companies are the flagship of the Argentine industry”, said the President accompanied by Kulfas, and the Secretary for Strategic Affairs and President of the Economic and Social Council, Gustavo Beliz.
They were also the secretary general of Smata, Ricardo Pignanelli, and for Adefa, the president of the entity, Martín Galdeano (Ford Argentina); Vice Presidents Daniel Herrero (Toyota Argentina) and Federico Ovejero (General Motors); and the secretary Marcus Cheistwer (Iveco). Santos Doncel Jones and Fernando Rodríguez Canedo also attended.
Last year 434,753 units were manufactured compared to 257,187 in 2020. In 2019 there were 314,787 vehicles. A year earlier, still without the impact of the enormous economic volatility, 466,649 units had been manufactured. Exports were 259,287 at the end of 2021 (in 2020 they were 137,891; in 2019, 224,248 vehicles and in 2018, 269,360 units).
The monthly drop between November and December of this year for production (14.3%), they counted THE NATION in Adefa, it was due to seasonal issues as there were three fewer days of work in the month.
In the meeting with Fernández, the businessmen stressed the importance of the Government moving forward with the investment promotion and electromobility bills; and they highlighted the elimination of withholdings for incremental exports, and also the work in defense of the common tariff of the sector in Mercosur.
There was no room for complaints before the President, despite the fact that in the industry they see that, with increasing frequency, import approvals – due to the lack of dollars – arrive in the third and even the fourth week of the month. On the other hand, they hope to sit down to negotiate with the Government the import scheme that will govern this year.
As this medium was able to find out, that bustle will remain for the third week of this month. There each of the automakers will have to sit down to negotiate with the Secretary of Industry, Ariel Schale. Close to the official, they estimate that the current scheme works very well and that they are working with the CEOs of the companies to produce and integrate more. “We accompany your requirements with all that are always many”, they joked near Schale.
“We completed 2021 with 381,777 patents, and although there are 68,223 units less than the initial 450,000 projections, It is a figure that is not less and that leads us to highlight the enormous effort made by the entire value chain to respond to a demand that has been very strong throughout the year ”, said Ricardo Salomé, president of the Association of Automotive Dealers of the Argentine Republic (Acara). Toyota finished as the market leader, with a share that reached 24.8% and with the Hilux as the best-selling vehicle.
“Going specifically to our activity, it has been truly epic to have been able to respond from our dealerships, many months with semi-empty premises, to customers who purchased their vehicles, with the supply problems that we have had ”, affirmed the manager. The supply problems were due to internal issues – the lack of dollars and obstacles to imports – and the global shortage of inputs due to the pandemic (semiconductors).
In Acara they estimated that they believe that “being positive” they can think of 2022 with a growth of a minimum of 5% to be able to exceed 400,000 vehicles. “Once again, the critical point will be in production due to a lack of chips, due to a very worrying issue such as Covid and the restriction on imports due to lack of dollars,” said Salomé.
According to the latest data from Acara, the prices of 0km cars, atthey accumulated to November a rise of 63.6% and showed a year-on-year jump of 72%. This variation, driven by the lack of supply, exceeded that of the dollar and inflation.