Argentina Autos Report Q2 2015 - New Study Released

From: Fast Market Research, Inc.
Published: Fri Feb 20 2015


Vehicle sales in Argentina declined 36.3% in 2014, to 613,848 units. BMI remains bearish on the outlook for the Argentine autos sector in 2015. We believe ongoing currency controls, rampant inflation, falling fixed investment and the expiry of the government's subsidised car purchasing scheme will all weigh on vehicle sales and production over the year.

We project that high inflation, slowing real wage growth, low fixed investment and increasing unemployment levels are likely to keep private consumption subdued in 2015, weighing on consumers' appetite for big ticket items and businesses' demand for fleet vehicles. On Top of this, the end of the government's Pro.Cre.Auto car loan scheme will further dampen demand as cheap access to car loans dries up amid rising interest rates in the country. Accordingly, we forecast a 6.3% decline in 2015 with only tepid 0.3% growth to follow in 2016.

We caution that, if inflation continues to escalate, Argentine consumers may start to purchase vehicles as a store against inflation, as we have seen in Venezuela. While this is not our current core view, this would serve to drive sales, but would lead to a huge increase in used car prices and further exacerbate inflation problems.

Full Report Details at
- http://www.fastmr.com/prod/956828_argentina_autos_report_q2_2015.aspx?afid=302

Vehicle production in Argentina contracted 22.0% in 2014, to 617,329 units, on the back of sustained declines in the domestic and export markets such as Brazil. BMI expects these dynamics to continue, and believes that this will weigh on output volumes over the year. Consequently we are forecasting a 4.6% decline in 2015 followed by a modest 3% recovery in 2016.

Company: Fast Market Research, Inc.
Contact Name: Bill Thompson
Contact Email: press@fastmr.com
Contact Phone: 1-413-485-7001

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