Argentina Passenger Car Production Drops

Source: Autodata

Although first quarter sales were up by 15.4%, from 60,700 units in Q1 2016 to 68,9 00 units in Q1 2017, production in the same period dropped by 7.4%, from 98,200 to 90,900 vehicles.

Exports dropped from 46,700 in Q1 2016 to 40,200 vehicles in Q1 2017.

PSR Analysis: Despite the analysis of ADEFA that ties this production to shutdown period differences in 2017 and 2016, this decline was due to a drop in exports to Brazil and the inventory adjustment due to this reduction. Although sales in Brazil are up 4.6% in this period compared with 2016, Argentinian models lost share.

 

Trade Agreement May Boost Bus Exports from Brazil to Caribbean

Source: Autodata

The Interamerican Development Bank (BID), is promoting the creation of a free trade zone alliance, a move that is welcomed by ANFAVEA, the Brazilian automakers association, since these countries are traditionally importers of CV, from Brazil, especially buses. The Caribbean countries individually are minor compared to Brazil, Argentina and Mexico, the biggest markets in Latin America, but they may be an interesting market when combined.

PSR Analysis: The ANFAVEA agenda calls for plenty of trade agreement discussions to improve exports in all vehicle segments, from passenger cars to mediumheavy CV. While this is not an ANFAVEA sole initiative and involves other markets, this may take long to come about and may impact the vehicle productionexport scenario. PSR is monitoring and keeping our customers up to date. PSR

Carlos Briganti is PSR Managing Director, South America
Fabio Ferraresi contributed to this report