Argentina Autos Report - Business Monitor International - Industry Reports

Argentina Autos Report

Argentina Autos Report - Business Monitor International - Industry Reports
Argentina Autos Report
Published Sep 03, 2016
39 pages — Published Sep 03, 2016
Price US$ 1,295.00  |  Buy this Report Now

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Abstract:

We believe ---- marks a watershed year as structural barriers to growth in the passenger car market are removed. In ----, vehicle sales underperformed as Argentina s households and businesses held back from vehicle purchases as vehicle prices rose dramatically due to depreciation in the peso, capital controls restricting imports and high tax burdens on more expensive vehicles. ...In the light vehicles segment, foreign-made models, which were traditionally more popular had been losing market share to locally produced vehicles in ---- as import controls and currency depreciation restricted the supply of imports and pushed up their price. However, with the removal of import controls, dealerships are moving to restock on imported models leading to a --.- y- o-y increase in imported vehicle sales to dealerships in H--- compared to just a -.- rise in domestically produced vehicle wholesales over the same period. This has brought the market share of imported vehicles to --.- in H--- from --.- in H---, which is close to the --.- market share of imported models in ---- before capital controls and taxes on luxury vehicles were introduced. ...However, with the removal of import controls, dealerships are moving to restock on imported models leading to a --.- y- o-y increase in imported vehicle sales to dealerships in H--- compared to just a -.- rise in domestically produced vehicle wholesales over the same period. This has brought the market share of imported vehicles to --.- in H--- from --.- in H---, which is close to the --.- market share of imported models in ---- before capital controls and taxes on luxury vehicles were introduced.

...We expect this outperformance of imports to continue for the remainder of ---- but two factors will slow this outperformance in the second half of the year compared to the first with a further slowdown in imports from ---- onwards. Firstly, the Argentinean peso will continue to along its depreciatory trend, which will increase the prices of imported vehicles. ...Secondly, in July ---- the government announced it will freeze the price ranges at which the luxury vehicle tax is applied despite the likelihood of peso depreciation pushing more vehicles into this price range. The government currently charges a tax of -- aimed at luxury vehicles priced over ARS---,--- (USD--,---) and -- on vehicles over ARS---,--- (USD--,---) after it revised down these tax rates from -- and -- , respectively, in late ----. However, a number of more popular mid-range imported vehicles have now moved into this price range or are at risk of doing so as automakers set prices higher for H--- in response to the depreciation in the peso. ...However, a number of more popular mid-range imported vehicles have now moved into this price range or are at risk of doing so as automakers set prices higher for H--- in response to the depreciation in the peso. This will increase the price of these more affordable vehicles and slow demand for them.

...We are revising up our outlook for the Argentine autos sector in ---- and ---- as the Argentine economy undergoes structural reforms and readjusts after the Peso s shift to a managed float and a relaxation of import controls. We currently forecast vehicle sales to dealerships (wholesales) in ---- to rise --.- as dealerships move to restock imported models after the removal of import controls. ...

  
Source:
Document ID
1748-975X
Country
Industry
Format:
PDF Adobe Acrobat
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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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MLA:
Business Monitor International - Industry Reports. "Argentina Autos Report" Sep 03, 2016. Alacra Store. Dec 08, 2016. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Argentina-Autos-Report-2026-351>
  
APA:
Business Monitor International - Industry Reports. (2016). Argentina Autos Report Sep 03, 2016. New York, NY: Alacra Store. Retrieved Dec 08, 2016 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Argentina-Autos-Report-2026-351>
  
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