| Market Research A to Z | Company Profiles A to Z | Register | Contact Us |
| +44 (0) 203 086 8600 Call us on |
Argentina Autos Report Q3 2009
Market |
Automotive and Parts |
Report Type |
Market Research |
Country |
Argentina |
Published |
16 June 2009 |
Number of Pages |
57 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
New vehicle registrations in Argentina fell 35% to 66,794 units in first two months of 2009
Argentina’s autos industry is experiencing knock-on effects of the global economic crisis. The decline in the export sector is having a dramatic impact, which has prompted us to revise down our real GDP growth forecast for 2009 to -1.0% compared with the 0.6% growth that we expected earlier.
With most banks now reluctant to approve loans, new vehicle registrations tumbled by almost 35% y-o-y to 66,794 units in 2M09, according to estimates from the Asociación de Fábricas de Automotores de Argentina (Adefa). It is believed that private consumption growth will be impeded as a result of declining real wages and restricted access to credit. As such, we have limited our vehicle sales forecast at 500,000 units, down by 18-20% by the end of 2009 compared with 2008. An annual contraction of 0.9% in economic growth will keep vehicle sales even lower, falling by nearly 3.5% y-o-y in 2010 after which it may bounce back with a robust 4% growth in 2011.
Falling domestic demand is likely to be aggravated by a fall in export volumes to 285,316 units this year, down from close to 351,900 units in 2008. We believe this will give existing carmakers reason to delay expansion plans, at least in the short to medium term. Honda Motor has postponed construction on a vehicle and engine assembly plant until mid-2010 and Ford Motor has reportedly reduced production from 18,319 units in Q108 to 10,625 units in Q109 in order to avoid inventory accumulation. We forecast that announcements like these will result in nearly 27-30% lower annual production volumes of 438,500 units for 2009. Recovery in Argentina is likely to be slower than in most markets, as we expect 2008 production levels to be reached no sooner than 2013.
Argentina has decreased by 1.3 points to 59.7 in the Business Environment Ratings for the industry in Latin America, primarily due to a significant reduction in Limits of Potential Returns in the industry.
Nevertheless, the market remains an attractive platform for carmakers seeking to tap long-term growth in the region. Toyota Motor, a relatively new participant in the country, now ranks fifth in terms of output, ahead of Volkswagen (VW), Mercedes-Benz, and Fiat. In terms of sales, VW, General Motors (GM), and Ford are the top three.
Last Viewed
Argentina Autos Report Q3 2009Turk Telecom Company Profile
Express Market Profile - Poland
Breakfast Cereals in Germany
China mobile market overview
Automotive and Parts Company Profiles
Automotive and Parts Company Profiles contain up to date financial, strategic, operational, SWOT analysis and product information on the activities of thousands of automotive and parts companies.
Become an Affiliate
Do you manage an industry specific website or blog? Are you looking to monetise your web traffic further? Are you a B2B website?
Why not offer your visitors industry specific strategic market reports and company profiles? Our Affiliate Program enables you to provide quality content on your website and to earn money from passing on visitors to our website. If a sale is made from your visitor, you earn commission (a fixed percentage of the price of a product).
Custom Research
Cannot find what you need? We can tailor a report for you. Complete the Custom Research Form and we will provide a quote.
