Public sector commitment and benefits for the investor
The public sector is driving several sector promotion policies to strengthen the production
chain, add high added value, improve the entry into international markets and contribute
to complementation with other countries.
the domestic auto parts promotion law includes benefits for
purchases of locally manufactured parts for domestic automobile manufacturing, internal
combustion engines, gear boxes and axis differential. In addition, a national program has
been launched to foster the development of the local auto parts industry (Programa de
Desarrollo de la Industria Autopartista Nacional) along with a productive financing plan
(Programa de Financiamiento Productivo del Bicentenario).
AUTOMOBILES AND AUTO PARTS:
TRUCKS: a renewal plan for trucking fleets (Programa de Financiamiento para la Ampliación
y Renovación de Flota) provides financial compensation at fixed rate in Argentine pesos
for producers and buyers of the freight transport sector. The program has covered farming
machinery, self-propelled road machinery and short and long distance buses since 2012.
an incentive program to promote local investment in motorcycle
manufacturing and motor parts provides fiscal credits, low custom duties and
reimbursements for motorcycles producers in Argentina.
MOTORCYCLES:
Discover the unbeatable investment
opportunities Argentina’s automotive and auto
parts industry offers investors.
AUTOMOTIVE AND AUTO PARTS INDUSTRY IN
ARGENTINA
INFORMATION SOURCES
GOVERNMENT INSTITUTIONS
Ministry of Industry
www.industria.gob.ar
BUSINESS ASSOCIATIONS AND PROMOTIONAL
ENTITIES
Association of Automotive Manufacturers (ADEFA)
www.adefa.com.ar
Association of Argentine Auto Parts Manufacturers
(AFAC)
www.afac.org.ar
Association of Automotive Dealerships in Argentine
(ACARA)
www.acara.org.ar
Association of Manufacturers of Engine Parts in
Argentina (AFYDREM)
www.afydrem.com.ar
Chamber of Importers, Manufacturers and
Exporters of Motor Vehicles in Argentina (CIFEMA)
www.cifema.org.ar
Argentine Chamber of Motorcycles (CAM)
www.cam.org.ar
Automotive and auto parts industry in Argentina
A sector on
the move
The Undersecretariat for Investment Development and
Trade Promotion is your strategic partner to invest in
Argentina
What the Undersecretariat for Investment Development
can do for you:
Provide specific information on business sectors and geographical locations in Argentina.
Facilitate the investment process throughout all the stages of the project in a
personalized and professional manner.
Assist in building partnerships between international investors and local companies.
CONTACT US:
info@inversiones.gov.ar – www.inversiones.gov.ar/en
PHOTO: UNDERSECRETARIAT FOR INVESTMENT DEVELOPMENT AND TRADE PROMOTION
Help identify specific investment opportunities in strategic sectors through the Productive
Investment Opportunities Database (http://bapip.inversiones.gov.ar).
ARGENTINA, A PLATFORM FOR TRADITION
AND INNOVATION
Why invest in the automotive and
auto parts industry in Argentina?
Tradition, knowledge, technology and
innovation for a fast-moving industry
TRADITION, CAPACITY AND INNOVATION
With a track record of over 60 years,
Argentina’s consolidated automotive
and auto parts industry ranks
second in South America in terms of
production volume. Both automotive
and auto parts manufacturers have
the skills and industrial knowhow to meet the most demanding
international standards and to add
new products and technologies in
line with the latest global trends.
“The new Splinter production has
shown us we can put our trust
in Mercedes-Benz Argentina and
we are proud of its work. That’s
why the OM651 engine—the
latest diesel motor technology—is
produced only in Argentina and
Germany […] Over the last seven
years, Argentina has recorded
important economic growth;
Argentina is and will continue to
be a high-potential market for
Daimler.”
SPECIALIZED SKILLED WORKERS
The sector’s workforce is comprised
of highly skilled and experienced
workers, representing the diverse
qualifications needed at every
stage of the production process.
In addition to the wide range of
graduate and postgraduate courses
in science, industrial design and
engineering offered by public and
private universities, there are other
important training initiatives in
places, such as the National Institute
of Technological Education and the
National Network of Professional
Training, a joint initiative between
the government and key labor
unions. These initiatives promote
professional training at national,
provincial and municipal levels in the
field of automotive mechanics.
DIETER ZETSCHE, CEO OF DAIMLER AG
THE AUTOMOTIVE AND AUTO PARTS INDUSTRY REPRESENTS 9% OF
ARGENTINA’S INDUSTRIAL GROSS PRODUCTION VALUE AND IS ONE OF THE
MOST IMPORTANT AND DYNAMIC SECTORS IN THE DOMESTIC ECONOMY.
FRONT-LINE INTERNATIONAL AUTOMOTIVE MANUFACTURERS —FIAT, FORD,
GENERAL MOTORS, HONDA, IVECO, MERCEDES-BENZ, PSA PEUGEOT-CITROËN,
RENAULT, SCANIA, TOYOTA AND VOLKSWAGEN— HAVE CHOSEN ARGENTINA AS
A PRODUCTION AND EXPORT PLATFORM. PLANTS LOCATED IN THE PROVINCES
OF BUENOS AIRES, CÓRDOBA AND SANTA FE REPRESENT 29,000 DIRECT JOBS;
WHILE THE AUTO PARTS SECTOR IS GROWING EVERY DAY AND ENCOMPASSES
OVER 400 COMPANIES AND EMPLOYS MORE THAN 65,000 WORKERS.
ARGENTINA OFFERS INVESTORS AN ATTRACTIVE DOMESTIC MARKET WITH
OVER 40 MILLION INHABITANTS WITH ONE OF THE HIGHEST PURCHASING
POWER PER CAPITA IN THE REGION. THE COUNTRY ALSO HAS PREFERENTIAL
ACCESS TO BRAZIL —ONE OF THE MAIN AUTOMOTIVE MARKETS IN THE WORLD—
AND TO OTHER MERCOSUR MEMBER COUNTRIES.
THANKS TO THE IMPORTANT DYNAMISM OF DEMAND AND DIFFERENT
NATIONAL AND REGIONAL PROGRAMS IMPLEMENTED THROUGHOUT 20032012, AUTOMOTIVE PRODUCTION GREW 18% ON AVERAGE PER YEAR,
REACHING A NEW PRODUCTION RECORD OF 829,000 UNITS IN 2011.
Segments
FROM ARGENTINA TO MERCOSUR AND THE
WORLD
Six of every ten vehicles produced
in Argentina are exported to
Brazil, thanks to the industry’s
preferential access to MERCOSUR
countries. In addition, the industry
is benefitted by various favorable
trade agreements in place with
other countries including Bolivia,
Chile, Colombia, Ecuador and Peru,
which is why numerous multinational
manufacturers have chosen
Argentina as their production and
export platform for models such
as Toyota Hilux, Ford Ranger and
Volkswagen Amarok.
AUTOMOBILES. PROMISING PRODUCTIVE OUTLOOK
MOTORCYCLES. REVIVING UP FOR MARKET EXPANSION
Almost 40 different automobiles and small car models were manufactured in 2012.
PSA Peugeot-Citroën leads production (18% of production), followed by General
Motors (17%), Volkswagen and Renault (15% each), Toyota (12%) Ford (11%) and
Fiat (9%). During 2012, domestic vehicle sales to authorized dealers rose 7%. There
is a highly favorable outlook for automobile exports to other growing countries in the
region, including Venezuela, Colombia and Ecuador.
Thanks to the utility and flexibility motorcycles represent as a mode of urban
transport and the national economic growth, the motorcycle market has boomed with
production reaching a new record of 585,000 units in 2011. The increasing demand
for motorcycles represents big investment opportunities for the local production,
which is in the hands of the main global players and local companies alike.
—
—
AUTO PARTS. PLAYING THE RIGHT PART IN THIS HIGH-GROWTH INDUSTRY
TRUCKS. MAC-SIZE OPPORTUNITIES
—
Mercedes-Benz and IVECO are the main companies manufacturing vans, trucks and
passenger buses in Argentina. The country’s sustained economic growth and new
plans of public support for fleet renewal have spurred demand in this sector and
created attractive productive investment opportunities. Within this framework,
starting in 2013, Mercedes-Benz began manufacturing new trucks and busses chassis
planning to double its current production in this segment.
—
In Argentina, the auto parts sector is formed by 400 companies. Production has
accompanied the automobile industry dynamism, achieving remarkable performance
in various segments along the production chain, such as engines and engine parts
and transmission chains. Notwithstanding the sector’s considerable expansion during
recent years, the auto parts sector offers big investment opportunities in diverse
segments, including transmission components, engines, electrical system, brakes,
interior equipment, bodywork, windshields, tires and seatbelts, among others.
A test case: from Argentina
to the World
Basso S.A., founded in 1967, is an
internationally renowned Argentine
auto parts company that employs
more than 700 workers. Basso
produces over 2,500 different
models of valves for standard
engines, motorcycles, competition
and high-performance engines,
heavy equipment and small-capacity
engines. The company exports 86%
of its production to 33 countries on
six continents, supplying the most
demanding markets for aftermarket
and original replacement parts; it is
Ferrari’s only official supplier in Latin
America. Basso has been chosen as
the best engine parts supplier for
clients such as PSA Peugeot-Citroën
Group, Kawasaki, Fiat and John
Deere, in addition to other awards
the company has been granted over
the years.