Argentina‘s automotive Production Declines in July, But Remains Up Year-to-Date
Buenos Aires, Argentina – argentina’s automotive industry experienced a downturn in production and exports during July 2025, according to a recent report released by the Association of Automotive Factories ADEFA. However, overall production for the first seven months of the year shows a positive trend, indicating resilience within the sector.
Specifically,National vehicle production reached 37,112 units in July,a decrease of 13.4% compared to June and 16.5% lower than the same month in 2024. Terminals exported 18,225 vehicles, representing a 19.9% decline from the previous month and a important 35.7% drop year-over-year. Wholesale sales also saw a reduction, with 50,186 units commercialized, down 16.1% from June but up 51.9% compared to july 2024.
The production decrease during the 19 business days of July is attributed to seasonal factors, including vacation schedules and planned maintenance for technological upgrades at various plants.Despite this temporary slowdown, the accumulated production from January to July totaled 287,590 units, marking a 10.1% increase compared to the same period last year. This demonstrates a broader positive trajectory for the industry.
exports also experienced a contraction, with 18,225 vehicles shipped abroad in July, a 19.9% decrease from june and a 35.7% decrease year-over-year. Cumulative exports for the first seven months of the year reached 147,879 units, a 4.7% decrease compared to the same period in 2024. ADEFA President martรญn Zuppi explained that these declines were anticipated due to seasonal adjustments and plant updates.
“In these first seven months the sector accumulates a positive year-on-year growth of 10.1% in productive matters,” Zuppi stated. “The contraction in the activity of July in production and exports in the same month was due to seasonal adjustments due to the vacation recess and maintenance and technological update tasks for new investments in the plants of some associates.”
Zuppi further emphasized the importance of addressing the tax burden to enhance the sector’s competitiveness.”Given the dynamics of our sector and the recent behavior of exports, it is key that we continue to focus on a joint work agenda the tax burden, as a key tool to enhance competitiveness.”
Wholesale sales figures show a more optimistic picture, with 50,186 units sold in July, a 16.1% decrease from June but a significant 51.9% increase compared to July 2024. Through the first seven months of 2025, companies have placed a total of 349,187 units in commercial networks, a significant 79.0% increase over the 195,029 units sold during the same period in 2024.
Key Takeaways:
- July saw declines in production and exports,largely attributed to seasonal factors.
- Year-to-date production remains up 10.1% compared to 2024.
- Wholesale sales show strong growth, up 79.0% year-to-date.
- ADEFA is advocating for tax reforms to boost competitiveness.
Looking Ahead: The Argentine automotive industry faces ongoing challenges related to global economic conditions and domestic policies. However,the strong wholesale sales and year-to-date production figures suggest a potential for continued growth,particularly if ADEFA’s calls for tax reform are addressed.
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