The automobile industry has been the main driver of industrial output growth in Latin America’s No. 3 economy, boosted by demand from neighboring Brazil — Argentina’s main export market.
Argentina-based plants produced a record 724,023 units last year, but ADEFA President Anibal Borderes said they were on track to top that figure this year despite signs of slower economic growth in Brazil.
Borderes told Reuters a slight slowdown in Brazil should not pose a major threat to Argentine automobile factories.
“Clearly any slowdown triggers a warning light. A slight slowdown in Brazil should not affect us very severely,” he said in an interview.
Carmakers in the South American nation plan to invest some $1.2 billion between 2010 and 2012, and Borderes said production capacity should climb to 1 million units next year.
“There’s a good pace in 2011 and we’re beating production and sales records every month, which means we think we should also see record exports this year,” he said.
“We’re laying the groundwork to reach 1 million units. We could have that capacity in place in 2012 (although) the final volume will depend on demand and for that we’ll be looking toward Brazil.”
Argentina exports 60 percent of the vehicles it produces. About 90 percent of foreign sales are made in Brazil, with Mexico a distant second.
Argentina ranks as the world’s No. 20 automobile producer; Brazil is the fourth-biggest global vehicle-maker.
Foreign automakers producing in Argentina include Toyota, General Motors, Fiat, Renault and Ford.
Vehicle production in July rose 23 percent from the same month a year ago, while exports jumped 25 percent, the latest ADEFA data shows.
