Flash Reports

Argentine Government Slams Car Sector.

Argentine Government Slams Car Sector Cristina Kirchner by Cristiano Setti

Argentine Government Slams Car Sector following a suicide strategy burning years of investments and significant industry growth. Following the former strategy that pushed up sales, this year increased taxation nailed the sector.

Argentina’s auto industry, the third largest in Latin America, has become the latest casualty of government policies that many economists say have pushed the economy into recession amid a toxic mix of double-digit inflation and crippling dollar shortages.

For years, President Cristina Kirchner ’s policies encouraged consumer spending through hefty government-brokered wage increase and by keeping interest rates well below inflation.

But that short-term gain has come with a longer-term cost. Government spending has helped drive up inflation to almost 40%, fueling capital flight and scaring off investment.

Foreign currency reserves have dwindled to $28 billion, while hopes the government might borrow dollars abroad were dashed when a legal dispute with creditors in the U.S. led Argentina to default on some of its debt in July.

Short of dollars, the government began rationing greenbacks to the local car industry earlier in the year, bad news for companies that import about two-thirds of the parts used to make a car in Argentina, while imported vehicles account for just over half of dealership sales.

The situation is so bad that General Motors Co. last month halted car shipments to Argentina from its Brazilian factories until the Kirchner administration frees up dollars to pay for those imports, said a person familiar with the matter.

In October 2014 according to data released by ACARA and ADEFA, the Argentinian Associations of Car Manufacturers and Dealers, total new Car Passengers sold in Argentina have been 50.319, down a huge 41.1% compared with the correspondent month last year.

Year-to-date October sales in Argentina have been 589.146, down 27.3% from the correspondent period last year.

Following the sharp decline, all brands are struggling with heavy double digit losses, starting from the leader, Volkswagen that sold 11.160 vehicles (down 20.3% from October 2013) with a share of 22.2%.

Ford was second with 6.953 units (-29.0%) and Toyota, one of the only two brands reporting a positive Y.o.Y. data, advanced in third place with 6.420 sales (+16.0%).

The other growing brand was Nissan (10th with 616 sales, +10.8%).

Many carmakers have reported real sales collapse. Audi in 17th place was down 89% as BMW (19th). Renault was down 68% (7th with 4.227 sales) and Chevrolet 65.7% (5th with 5.211).

Looking at the report on Car Groups, the October leader was Volkswagen with 22.3 of market share, ahead of PSA with 16.9% and Ford with 13.8%.

As far as model ranking report, the Volkswagen Gol was again on top with 2.976 sales despite losing over 46% of sales. In the recent report about the 100 Global Best-selling cars, the Gol was the worse model Y.o.Y.

Second was the pick-up Toyota Hilux (2.866 sales, +30.7%) few units far from the leader, and third was the Volkswagen Suran (2.128 sales, -3.8%).

Below, you can sort our interactive tables to see data regarding Brands, Groups and Models. Please bear in mind that sales data are subject to adjustments as sources will update their information. This report is updated at the publishing date and will not be modified while the next on this subject will always have the year to date data updated.

Rank Oct Rank YtD Brand Sales Oct YTD Oct Oct YoY Var YTD YoY Var Share Sep Share Oct Share YtD
1 1 Volkswagen 11.160 97.639 -20,3% -30,1% 18,8% 22,2% 16,6%
2 2 Ford 6.953 81.357 -29,0% -20,0% 14,5% 13,8% 13,8%
3 7 Toyota 6.420 57.581 16,4% 23,8% 10,9% 12,8% 9,8%
4 6 Peugeot 6.034 63.919 -32,3% -27,3% 11,6% 12,0% 10,9%
5 5 Chevrolet 5.211 74.805 -65,7% -39,6% 11,8% 10,4% 12,7%
6 3 Fiat 4.428 78.502 -51,7% -15,9% 10,7% 8,8% 13,4%
7 4 Renault 4.227 77.251 -68,3% -35,9% 10,9% 8,4% 13,1%
8 8 Citroen 2.448 25.951 -30,5% -29,0% 3,9% 4,9% 4,4%
9 9 Honda 849 8.167 -24,7% -25,3% 2,0% 1,7% 1,4%
10 10 Nissan 616 4.979 10,8% 1,1% 1,2% 1,2% 0,8%
11 11 Mercedes 460 4.750 -52,9% -47,0% 0,9% 0,9% 0,8%
12 12 Chery 394 3.262 -42,3% -52,7% 0,7% 0,8% 0,6%
13 13 Iveco 237 1.892 -13,2% 5,8% 0,4% 0,5% 0,3%
14 14 Hyundai 220 1.532 -46,6% -64,5% 0,4% 0,4% 0,3%
15 15 Kia 204 1.211 -12,1% -38,5% 0,3% 0,4% 0,2%
16 16 Ram 159 1.200 0,4% 0,3% 0,2%
17 17 Audi 62 1.024 -88,6% -84,5% 0,1% 0,1% 0,2%
18 18 Jeep 45 635 -78,6% -75,1% 0,1% 0,1% 0,1%
19 19 BMW 41 542 -89,8% -85,4% 0,1% 0,1% 0,1%
20 21 Mitsubishi 40 367 -27,3% -37,4% 0,1% 0,1% 0,1%
21 20 Dodge 31 408 -67,7% -77,4% 0,1% 0,1% 0,1%
22 24 Alfa Romeo 17 142 -69,6% -76,5% 0,0% 0,0% 0,0%
23 22 Smart 15 197 -69,4% -44,7% 0,0% 0,0% 0,0%
24 23 Mini 11 150 -83,8% -77,3% 0,0% 0,0% 0,0%
25 26 Volvo 9 124 -79,1% -76,3% 0,0% 0,0% 0,0%
26 29 Chrysler 8 51 -20,0% -37,8% 0,0% 0,0% 0,0%
27 27 Land Rover 7 109 -87,3% -71,3% 0,0% 0,0% 0,0%
28 25 Suzuki 6 127 #DIV/0! 12600,0% 0,0% 0,0% 0,0%
29 28 Subaru 3 66 -93,8% -82,2% 0,0% 0,0% 0,0%
30 30 Porsche 2 46 -91,3% -78,6% 0,0% 0,0% 0,0%
30 33 SsangYong 2 5 -33,3% -91,7% 0,0% 0,0% 0,0%

Rank Oct Rank YtD Group Sales Oct YTD Oct Oct YoY Var YTD YoY Var Share Sep Share Oct Share YtD
1 1 Volkswagen 11.224 98.709 -23,0% -32,6% 19,0% 22,3% 16,8%
2 2 PSA 8.482 89.870 -31,8% -27,8% 15,5% 16,9% 15,3%
3 5 Ford 6.953 81.357 -29,0% -20,0% 14,5% 13,8% 13,8%
4 7 Toyota 6.420 57.581 16,3% 23,8% 10,9% 12,8% 9,8%
5 6 GM 5.211 74.805 -65,7% -39,6% 11,8% 10,4% 12,7%
6 3 FCA 4.925 82.837 -49,8% -17,3% 11,7% 9,8% 14,1%
7 4 Renault-Nissan 4.843 82.230 -65,1% -34,5% 12,1% 9,6% 14,0%
8 8 Honda 849 8.167 -24,7% -25,3% 2,0% 1,7% 1,4%
9 9 Daimler 475 4.947 -53,7% -46,9% 0,9% 0,9% 0,8%
10 11 Hyundai-Kia 424 2.743 -34,2% -56,4% 0,7% 0,8% 0,5%

Rank Oct Rank Ytd Model Sales Oct Sales Ytd Oct YoY Var. Share I Half Share Q3 Share Oct Share Ytd
1 1 Volkswagen Gol 2.927 30.143 -46,6% 5,5% 4,2% 5,8% 5,1%
2 3 Toyota Hilux 2.866 24.162 30,7% 4,0% 3,9% 5,7% 4,1%
3 9 Volkswagen Suran 2.128 18.384 -3,8% 2,8% 3,5% 4,2% 3,1%
4 8 Peugeot 208 2.080 18.672 -22,4% 3,0% 3,3% 4,1% 3,2%
5 7 Ford Fiesta 2.046 20.810 19,6% 3,8% 2,9% 4,1% 3,5%
6 6 Chevrolet Classic 1.975 22.141 -39,4% 3,6% 4,2% 3,9% 3,8%
7 4 Renault Clio 1.946 24.103 -31,3% 3,5% 5,4% 3,9% 4,1%
8 17 Toyota Corolla 1.711 13.381 38,8% 1,9% 2,6% 3,4% 2,3%
9 10 Toyota Etios 1.699 18.142 87,1% 3,0% 3,2% 3,4% 3,1%
10 5 Ford Ecosport 1.653 22.346 -45,3% 3,8% 3,9% 3,3% 3,8%
11 11 Ford Focus 1.634 17.990 32,2% 2,6% 3,9% 3,2% 3,1%
12 2 Fiat Palio 1.510 24.385 -21,7% 4,0% 4,7% 3,0% 4,1%
13 14 Volkswagen Amarok 1.501 14.360 -15,8% 2,4% 2,4% 3,0% 2,4%
14 13 Ford Ranger 1.473 14.394 -24,4% 2,3% 2,6% 2,9% 2,4%
15 15 Renault Kangoo 1.236 13.923 -33,4% 2,3% 2,4% 2,5% 2,4%
16 45 Volkswagen Up! 1.232 3.371 0,0% 1,2% 2,4% 0,6%
17 20 Peugeot 207 1.221 10.781 -17,3% 1,6% 2,1% 2,4% 1,8%
18 25 Volkswagen Fox 1.092 7.767 1,3% 1,2% 1,3% 2,2% 1,3%
18 12 Fiat Siena 1.092 17.278 -33,1% 3,1% 2,9% 2,2% 2,9%
19 22 Citroen C4 1.080 8.726 38,6% 1,4% 1,4% 2,1% 1,5%
20 19 Peugeot Partner 1.029 11.437 -44,4% 2,0% 1,9% 2,0% 1,9%
21 16 Peugeot 308 1.026 13.766 -33,2% 2,5% 2,1% 2,0% 2,3%
22 23 Volkswagen Voyage 1.014 8.661 -15,1% 1,5% 1,3% 2,0% 1,5%
23 18 Renault Duster 759 11.684 -73,8% 2,4% 1,3% 1,5% 2,0%
24 31 Fiat Strada 748 6.737 6,4% 1,1% 1,0% 1,5% 1,1%
25 35 Volkswagen Saveiro 713 5.831 -1,0% 0,9% 1,0% 1,4% 1,0%

Please consider to purchase the recently published research on this country featuring the recent performance by segment, brand and models (Argentina Car Market Insights).

Wishing to receive a broader picture including the country evolution towards the 2018, you can require the development of the Argentina Car Market Outlook to 202018

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