Car Production and Exports Fall in Argentina Amid Industry Adjustment

Argentina's automotive sector experienced a downturn in June, with both production and exports declining. The industry produced 37,029 vehicles during the month, a 1.9% decrease from May and a significant 13.6% drop compared to June of the previous year, according to the latest report from the Association of Automotive Factories (Adefa).

This decline continues a trend seen in the first half of the year. From January to June, manufacturers produced 204,658 units, marking an 18.3% decrease from the 250,478 vehicles produced in the same period of 2025. Adefa President Rodrigo Pérez Graziano noted that the local industry is adapting to demand at a slower pace.

Exports also contracted in June, falling 11.3% from May and 1.7% below June 2025 levels, with 22,373 units shipped abroad. For the first semester, exports totaled 126,893 vehicles, a 2.1% decrease compared to the same period in 2025. Exports represented 60.4% of June's production and 62% of the total manufactured volume in the first half.

Brazil remains the primary destination for Argentine-made vehicles, accounting for 65% of exports in the first semester, with 82,486 units. Other key markets include Central America (12.8%), Peru (6.9%), Chile (6%), and Colombia (4.6%).

Adefa highlighted the government's reduction of export taxes as a crucial step for competitiveness. However, the association stressed the need for support from provincial and municipal governments to lower tax burdens and address structural challenges for sustainable production volumes. Meanwhile, wholesale sales showed a monthly recovery, increasing 22.5% from May, but remained 26.3% below June 2025 figures. First-half wholesale sales fell 23.7% year-on-year.