As exports to the neighboring country fell by 2.6%, purchases grew by 10.9%
By Alzira Rodrigues | 8/11/23 | Translated by Jorge Meditsch
Brazil is buying more cars and pickups produced in Argentina, as exports to the neighboring country drop. Consequently, sales of imported vehicles in the national market grew more than locally made products.
According to Anfavea, light vehicle sales to Argentina fell by 2.6% through July from 84 thousand to 81 thousand units. For the first time, Mexico imported more Brazilian cars than Argentina and became the main market for our automobiles and light commercial vehicles.
Contrary to Brazilian falling exports, figures released by Adefa, the Argentinian manufacturers association, show that vehicle sales to Brazil grew 10.9% from January through July, from 100,868 in 2022 to 111,877 units.
The numbers are confirmed by sales of models made in Argentina: the VW Taos had 9,457 units licensed through July, 52% more than the 5,018 sold in the same period last year.
The Ford Ranger pickup, also made in Argentina, is selling more here: 9,457 units were delivered this year, 29% more than the 7,323 sold last year, according to Fenabrave.
The bestselling Argentinian model here is the Fiat Cronos, with 24,231 registers this year, 21% more than in 2022 (19,969).
The increasing purchases from Argentina are contributing to the growth of imported light vehicles’ share in the Brazilian market. The participation has been growing since 2020, jumping from 10.3% to 12% and 13% in the following years.
In the first seven months of 2023, the imports share already reaches 14.2%. 168,378 light vehicles made abroad were licensed through July, 20.9% more than the 139,295 registered in 2022. The national light vehicles market grew by 11.2% from 883 thousand to 982 thousand units.
Announcing last 8/10 that Mexico overcame Argentina as the main Brazilian light vehicle buyer, Anfavea’s president, Márcio de Lima Leite, commented that the recent tax changes in the neighboring country are reflecting negatively on Brazilian businesses.
Created in July, the new tribute called PAIS (Para una Argentina Inclusiva) defines a 7.5% tax on imported products, including vehicles and does not exempt Mercosul products. According to Anfavea, this way, the Argentinian car becomes 7.5% cheaper than Brazilian products.
“The tribute impacts the shipment flow and harms our exports and the Brazilian cars’ competitiveness in the Argentinian market”, he said.
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