The auto industry jumped nearly 41% in August

Auto terminals had in August the best month since the pandemicwith a production of 54,057 unitswhich represented a strong rebound both compared to the previous month (+ 22.8%) and compared to the same month of the previous year (40.9%), as reported by Association of Automobile Manufacturers (ADEFA).

In this way, the accumulated in eight months is 341,788 unitswhich brings the automotive industry in line with production estimates of between 500,000 and 530,000 units for the full yearto the extent that there are no unexpected factory shutdowns due to lack of imported inputs.

In exports, car manufacturers have also been very active. In August they were shipped overseas 32,479 vehicles41.6% more than the previous month e 30.2% above August 2021. So far this year they have been exported 195,465 vehicles25.3% more than in the January-August period last year.

In wholesale sales, the report showed that the automotive sector as a whole sold to the dealer network in August 29,171 units0.9% less than July deliveries and an 11.9% increase over the same month last year.

In this way, sales from factories to their dealers were achieved 239,836 units in the cumulative of the year, 7.6% more than in the same period of 2021.

The clouds that are on the horizon today are centered on the normal supply of parts. Since the Central Bank has restricted access to Single and free exchange market (MULC), both car manufacturers and their auto parts suppliers registered in early June difficulties and bottlenecks. But so far, except in some specific cases, there were no downtime in the terminals or staff suspensions.

Another critical point, still valid, is the conflict between the Tire Union and the three tire manufacturers based in the country: Pirelli, Firestone and Fate. According to the estimates of businessmen, these three factories have been put on the market in the last four months just under 700,000 tires, while in times without conflict the delivery rate for these supplies would have been 500,000 units per month.

The holder of ADEFA, Martin Galdeanohe raised the situation on the other side: in the official press release from the automobile body, he focused on the progress made since Sergio Massa was hired as Minister of the Economy.

“As part of this joint work of the value chain and the Government that we are carrying outwe appreciate the progress already made following the first round table with the authorities of the new economyas well as dialogue on the various measures to be implemented in the coming months to continue to focus on improving competitiveness and the necessary predictability, “said Galdeano, who is also president of Ford’s Argentine branch.