Argentina Outlook. One Million Plan launched to double volumes by 2023

Argentina automotive Fiat-Argo-2018

Argentina automotive industry represents almost  8.5% of Argentina’s industrial gross production value. The One Million Plan, just launched by the President Macri aim to double production volumes by 2023 enhancing domestic market.

In March 2017, the President of the Argentinian Republic, Macri, has signed the One Million Plan, a plan set up to boost sector relevance and over double the production by 2023.

The plan has two main goals, to produce a million automobiles and to not only take care of the industry, but to make it grow with more than 30,000 new jobs.

The plan calls for investing 5 billion U.S. dollars in the industry over the next two years to reach an output of 750,000 units by 2019, and doubling today’s manufacturing capacity by 2023.

At least 35 percent of output is to be exported to countries outside the Mercosur trade bloc, which gathers Brazil, Paraguay, Uruguay and Venezuela (currently suspended), as well as Argentina.

Macri called the plan as “the second great agreement” of his administration, following an agreement with all segments of the energy industry to develop shale in the country’s Vaca Muerta region in south-central Nequen province. Last year, Argentina manufactured 472.776 vehicles, a 10.2% drop compared to 2015.

The automotive and auto parts industry represents almost 8.5% of Argentina’s industrial gross production value, playing a key role in job creation and technology transfer.

Vehicles production is made by several Manufacturer, with the recently arrival of Chinese near the 10 historical makers.

The ten historical manufacturers present in Argentina with over 10 years of experience in this market –Fiat, Ford, General Motors, Iveco, Mercedes Benz, PSA Peugeot-Citroën, Renault, Scania, Toyota and Volkswagen– are actually producing a total of 26 different models. A few of the models are commercial vehicles, however the majority are passenger cars.

Motor vehicles production has been present in Argentina for more than six decades. This tradition and experience in automotive production is reflected in a highly qualified domestic labor force, characterized by both well-built technical capabilities and flexibility to adapt to a changing work environment.

Argentina is a full member of Mercosur, a common market also integrated by Brazil, Paraguay and Uruguay. As such, Argentina has preferential access to a regional market of 238 million inhabitants, with a combined GDP of US$1,9 billion (2015). As part of Mercosur, Argentina has concluded Economic Complementation Agreements with Bolivia, Chile, Colombia, Ecuador, Peru and Venezuela.

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