ADEFA President: Provinces and Municipalities Must Lower Tax Burden and Local Fees on Cars

The Argentine automotive sector is showing signs of recovery, with March production figures indicating a significant monthly improvement. While the overall first quarter still lags behind last year, the uptick in production and exports offers a glimmer of hope for the industry. The Association of Automotive Factories (ADEFA) reported a 40.8% increase in vehicle production compared to February, reaching 41,716 units. This surge, occurring over 18 business days, averaged 2,086 units daily, signaling a more robust manufacturing pace.

However, the cumulative data for the first three months of the year presents a more cautious picture. Total production stands at 92,346 vehicles, a 19% decrease compared to the same period in 2025. Similarly, while exports saw a substantial 66.6% jump from February to March, bringing the total to 26,646 units, the year-to-date export figure is down by 9.5% compared to the previous year. This disparity between monthly gains and year-over-year declines underscores the challenges the sector faces in achieving sustained growth.

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The final numbers for the quarter put us 19% below the same period in 2025, which indicates that to consolidate the upward trend and transform the recovery into sustained growth, the key is to continue working on our competitiveness agenda.

Rodrigo Pérez Graziano, president of ADEFA, emphasized the need for continued efforts to enhance competitiveness. He highlighted that consolidating the current recovery trend into sustained growth requires a coordinated approach involving all levels of government. "We are working with the entire value chain and the National Government to reduce structural costs, optimize processes, and make operations more efficient," Graziano stated. He stressed that for these efforts to bear fruit, provinces and municipalities must also join this agenda by reducing the tax burden and local fees that penalize the production process and exports.

Graziano's call for reduced taxation at the provincial and municipal levels is crucial. These local levies, he argues, significantly impact the cost of production and hinder the sector's ability to compete both domestically and internationally. The industry's reliance on a coordinated strategy, extending beyond national policies to encompass regional and local fiscal measures, is paramount for navigating the current economic landscape and ensuring the long-term viability of Argentina's automotive industry.

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We are working with the entire value chain and the National Government to reduce structural costs, optimize processes, and make operations more efficient. For these efforts to bear fruit, the commitment must be total, meaning that provinces and municipalities join this agenda of improving competitiveness, reducing the tax burden and local rates that weigh on the production process of the entire chain and penalize exports.