The Argentine automotive industry continues to post significant levels of growth and further increases are expected in 2007, according to BMI's latest Argentina Automotives Report. The Argentine carmakers association ADEFA expects production to reach around 500,000 units this year, with a similar number of vehicles being sold. Growth will be boosted by the international motor show in Buenos Aires in June. Sales have already reached a record high this year, in April, when 45,145 units were sold to dealerships. According to industry data, Volkswagen (VW) continues to rank as the top-selling carmaker on the Argentine market. During the period January-April 2007, VW sold 41,160 units, a 33.3% increase on the same period a year before. General Motors (GM) sold 29,135 units, while Ford, ranked third, sold 22,028 units.
Ford is bidding to improve its standing on the Argentine market with the launch of a three-year programme aimed at updating the carmaker's entire product portfolio. As the first step in the process, Ford will unveil the new series Fiesta. According to company sources, Ford is targeting sales of around 15,000 Fiesta vehicles this year, while the carmaker expects its total sales to exceed 70,000 units. BMI maintains its 2007 forecast for total sales of 452,270 units.
Toyota is also eyeing a greater share of the Argentine market this year. During the period January-April, Toyota's sales reached 7,562 units, against 5,655 units sold in the same period a year before. According to company sources, Toyota is bidding to increase its sales by 10% in 2007.
Toyota has earmarked investment of US$41.5mn for its business in the country. The capital will be used to expand the carmaker's production facilities in Zárate, Buenos Aires, where it makes the Hilux pick-up truck and the Hilux SW4 SUV. The parts made in Zárate will be used in vehicles sold domestically and exported to Venezuela where the Hilux models are assembled from completely knocked down (CKD) kits. These plans are in line with Argentina's position on BMI's Business Environment Ranking, where the country receives a favourable score precisely because of the export opportunities available to manufacturers.
