Automotive Industry in Argentina

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Automotive Industry in Argentina Driven to meet global market needs INVESTMENT OPPORTUNITIES

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This publication will help you understand the Automotive in Argentina, a developed and innovative industry with a long tradition in the country. The report includes: International leading companies with presence in Argentina: Fiat, Ford, General Motors, Mercedes Benz, Peugeot-Citroën, Renault, Toyota, Volkswagen, Iveco and Scania. Great opportunity for growth in auto parts to complement regional and global demand in the automotive industry which is increasing in sophistication and innovation. Success case: Rafaela, Santa Fe (Basso) is a leading world producer and exporter of valves. This document was produced by ProsperAr, Argentina´s Investment Development Agency. If you need further assistance contact us at [email protected] or use our website www.prosperar.gov.ar.

Transcript of Automotive Industry in Argentina

Page 1: Automotive Industry in Argentina

Automotive Industry in ArgentinaDriven to meet global market needs

INVESTMENT OPPORTUNITIES

Page 2: Automotive Industry in Argentina

Page 3: Automotive Industry in Argentina

Highlights

>> A STRONG LOCAL INDUSTRY IN A PROMISING CONTEXT The global automotive industry is currently registering record production levels,

mainly driven by an increasing demand and export dynamism in developing economies. A heavyweight in Argentina’s manufacturing sector, the automotive industry is a growth leader.

>> OUTSTANDING PRODUCTION AND EXPORT PERFORMANCE Rocketing exports and domestic sales are driving Argentina’s automotive

production, which has almost doubled since �00�. Automobile production grew almost �0% per year over a five year period, reaching a record high of 545,000 units in �007. Manufacturers’ decision to use Argentina as an export platform for some models gave a big push to exports, which grew ��% per year in the same five year period.

>> FIRST CLASS INTERNATIONAL PLAYERS International corporations with a historical presence in Argentina—like

Fiat, Ford, General Motors, Mercedes Benz, Peugeot-Citröen, Renault and Volkswagen—as well as more recent arrivals—like Toyota—are making substantial investments to expand production capacities and improve technological capabilities. This dynamic industry is at the forefront of Argentina’s manufacturing sector.

>> A BOOMING AUTO PARTS INDUSTRY The auto parts industry is booming. Auto parts manufacturers are seeing

increased demand as automakers roll out new models, increase production capacity and move to outsource more of their needs. Current trends signal an important opportunity for domestic auto part suppliers to upgrade their production by working closely with automobile manufacturers with global presence.

>> ATTRACTIVE AND PROFITABLE SEGMENTS Regional market growth, local skills and the country’s competitive exchange

rate have opened profitable investment opportunities in the automobile, truck and motorcycle manufacturing segments.

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I. Why Invest in Automotive Industry in Argentina?

• FROM ARGENTINA TO MERCOSUR AND THE WORLD.

Domestic production in the automotive industry is

increasingly oriented towards both Mercosur and the

global market, apart from satisfying the expanding

domestic demand. Key global players in the sector have

chosen the country as an export platform to produce

specific models to supply the growing regional market

and, furthermore, to export automobiles from Argentina

to the rest of the world.

• PROFITABLE OPPORTUNITIES: AUTO PARTS

MANUFACTURING. In Argentina, auto part manufacturing

has mirrored the growth pattern in motor vehicle

production and investments in the sector have also led to

auto parts exports’ reaching unprecedented levels. Intense

competition has led auto parts manufacturers to focus on

certain elements of the value chain. Top performers in this

market have been able to incorporate modern production

technologies and best practices, and have concentrated

on high-tech segments of the market. Due to past and

projected investments, Argentina is well positioned to

compete successfully in this global market.

• ATTRACTIVE SEGMENTS: TRUCKS AND MOTORCYCLES.

Argentina’s strong economic growth has also encouraged

a rise in demand for trucks and motorcycles. Currently,

demand in these two markets is mainly met by imports.

Although domestic production has increased in response

to this trend, there is still a sizable opportunity for local

manufacturers to increase their market shares.

• PROMISING GLOBAL OUTLOOK. The global automotive

industry has reached record production levels. With

over 70 million motor vehicles produced in more than

40 countries, this industry has seen steady growth

over the past years. With global annual growth rates of

approximately 3%, performance has been diverse across

regions. The highly fragmented global auto parts and

equipment market is valued at over US$500 billion.

• A NEW ROLE FOR EMERGING ECONOMIES.

A remarkable trend of the last decades is the growing share

of emerging economies in global automotive production.

New corporate strategies oriented towards the global and

regional markets have sought to increase competitiveness,

reduce costs and expand the product mix. With a thriving

auto sector, the Asia-Pacific region doubled its production

in the last decade, while South American output grew 50%

during this period and Eastern Europe’s over 30%. With

a demand previously concentrated in fewer regions, the

auto parts and equipment market has also grown rapidly in

emerging countries.

• STRONG FOUNDATION FOR SUCCESS. In Argentina, the

automotive industry is highly dynamic and remains a

leader in the country’s overall manufacturing production.

Vehicle production has more than tripled since 2002 and

strong growth is expected to continue. Access to new

markets, large Foreign Direct Investment (FDI) inflows,

regional cooperation and the country’s competitive

exchange rate have increased the sector’s technological

know-how and driven growth.

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II. Sector Structure and Performance

INDUSTRY STRUCTURE

Manufacturers. There are ten manufacturers present

in Argentina –Fiat, Ford, General Motors, Iveco, Mercedes

Benz, PSA Peugeot-Citroën, Renault, Scania, Toyota and

Volkswagen– producing a total of 18 different models. A

few of the models are commercial vehicles, however the

majority are passenger cars.

SECTOR PERFORMANCE

A key sector. The automotive industry is a key

contributor to manufacturing production and exports in

Argentina. In 2007, it represented 2.5% of GDP (including

automotive parts manufacturing), 8.5% of industrial

production and 10% of exports. The automotive industry

remains one of the principal engines of industrial growth

and technology transfer. A sustained expansion in both

domestic demand and exports has supported continued

fast growth in the sector: production expanded at an

average rate of 29% per year during 2002-07 and the

industry reached record high production numbers. As a

result, automotive production explained more than 30% of

growth in the country’s industrial production over the past

three years. Exports and employment also boomed steadily

since 2002: exports were up 22% per year in the last five

years (as some manufacturers have chosen Argentina as

an export platform for certain models) and employment

increased 55% between 2002 and 2007.

Vehicle Production by Company (2007)

Production and Exports of Vehicles (in thousands of units)

Peugeot ��%

Iveco1%

Mercedes Benz5%

VW 11%

Toyota 1�%Ford 1�%

GM �1%

Renault 1�%

0

100

�00

�00

400

500

�00

�000 �001 �00� �00� �004 �005 �00� �007

Production

Exports

Record production and export levels. A record-

high level of 545,000 units was produced in 2007 (64%

passenger cars, 36% commercial vehicles), comfortably

surpassing the previous peak of 1998. In 2007, 58% of

the vehicles produced were exported, reaching a new

exporting record of 316,000 units. Brazil accounted for

over one-half of Argentina’s vehicle exports. However, the

export base has diversified in recent years, reaching 84

different countries in 2007, with Mexico (13% of exports),

Venezuela (5%) and Chile (5%) becoming increasingly

important markets. Triggered by growing automotive

production, automotive parts sales also expanded

Production and sales. Regarding production, Peugeot

was the leader in 2007, followed by Ford and GM. Toyota

is one of the fastest-growing manufacturers in Argentina,

thanks to large investments since 2002. Honda has also

announced its establishment in the country in 2009.

In terms of sales, Volkswagen was the market leader in

2007, accounting for 22% of the market. General Motors is

the second-largest company in Argentina regarding sales,

with 16% in 2007. Ford and Peugeot-Citroën share the

third place with 14% market share each.

Auto parts. In addition to manufacturers’ activities,

Argentina has developed a large auto parts industry

comprised by more than 400 companies. This segment

creates 62,000 jobs, vis-à-vis less than 20,000 jobs at the

manufacturers. Most firms are located in the provinces of

Buenos Aires, Córdoba and Santa Fe.

Argentine Association of Automobile Manufacturers (ADEFA)

Argentine Association of Automobile Manufacturers (ADEFA)

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significantly between 2002 and 2007 (at a compound

annual rate of 24%) and peaked at US$5.5 billion in 2007.

Auto parts exports have doubled in the last five years,

reaching an unprecedented level of US$2.2 billion in 2007.

Innovation. Large inflows of FDI expanded production

capacities and brought technological know-how for

process improvements. All automotive companies

currently operating in Argentina increased their

production levels to meet the rising local and external

demand. At the same time, the industry started playing

a more important role internationally when the

manufacturing of new models was set in the country: seven

new models were introduced between 2003 and 2007.

INDUSTRY SEGMENTS

Some new segments are gaining share in vehicle

production and represent attractive investment

opportunities. Car production accounted for 64.4% of total

production in the industry and light commercial vehicles

represented 34.6% in 2007. Heavy trucks, coaches and

buses represented the remaining 1%. Regarding sales, cars

accounted for the lion‘s share of the domestic market with

75% of the total, light commercial vehicles accounted for

20% of total sales, and heavy trucks, coaches and buses for

the remaining 5%.

Trucks. Demand for trucks has increased stimulated

by the economic growth over the past five years and

particularly by the agriculture boom. IVECO is the only

truck manufacturer in Argentina (5,100 units in 2007). The

domestic market is mostly supplied by imports. Production

has grown steadily since 2002 to meet the increasing

demand; however imports increased faster than

production. Currently imports are 3.5 times the level of

domestic production.

Motorcycles. Both world-class foreign companies

(Honda, Yamaha, Cagiva, BMW, Gilera, Jawa) and

domestic firms are players in the local motorcycle

industry. The most important motorcycle manufacturers

are located in the province of Buenos Aires. Additional

companies are located in the provinces of Córdoba, Santa

Fe, San Luis, San Juan and Catamarca. Demand remains

higher in the provinces than in the city of Buenos Aires.

The domestic market for motorcycles has boomed over

the past five years, reaching 680,000 units sold in 2007,

compared to 12,000 units sold in 2002. Production

increased significantly to keep up with rising demand,

peaking at over a quarter million units. Demand was

fostered as a result of the strong economic growth of the

past years, the recovery of purchasing power, employment,

consumption and the widening gap between prices of

automobiles and motorcycles. During this period, imports

(634,000 units in 2007) grew even faster than production

(at a compound annual growth rate of 128% between 2002

and 2007 vis-à-vis a rate of 121% for production during the

same period). Over 90% of imported models, mainly small

motorcycles, come from China.

INVESTMENT

The strong recovery of automotive production has

prompted strong investment commitments on behalf of

a number of manufacturers. According to the Argentine

Association of Automobile Manufacturers (ADEFA),

manufacturers have invested US$1.2 billion in facilities

since 2003 and estimate that investment will exceed US$3.5

billion between 2007 and 2010; over US$1.7 billion in 2007

alone. This would increase output to 800,000 units by 2010.

• Volkswagen announced a US$100 million investment

to expand current capacity for the production of

transmission gears; and another US$320.5 million to

manufacture its first pick-up truck, with an estimated

output of 90,000 units in 2009.

• Ford: will invest US$161 million for the production of

a new medium-sized model in 2008 and a new pick-

up truck in 2010. In 2006, the completion of previous

investment projects resulted in an increase in production

from 300 units per day to 340 units.

• PSA Peugeot-Citroën: announced a US$24 million

investment to expand current capacity and to increase

the integration of local parts in their domestic

production. ¤76 million were already invested to start

the production of the new Citroën C4.

• Toyota: announced an investment of US$41.5 million

to increase production of auto parts. Toyota has so far

invested US$ 1 billion in Argentina.

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• Honda: is investing US$100 million in a new plant in the

city of Campana to produce a new medium-sized model.

The start of production of 30,000 units is projected for

2009, two-thirds of which is expected to be exported

to Brazil.

• Mercedes Benz: announced a US$50 million capital

investment to produce the NCV3, a new commercial

vehicle.

• General Motors: announced a US$200 million

investment for the production of a new model at the

company’s plant in Rosario.

• Fiat: following an agreement between Fiat and Tata

Motors, the Fiat plant in Ferreyra in the province of

Córdoba is expected to reopen to manufacture a new

medium-sized car model and a pick-up truck. In 2008,

the company will invest US$60 million to produce

50,000 units per year of the Siena model.

• Renault: announced a US$80 million investment for

the production of a new vehicle, and to increase the

production of the Kangoo and Clio models.

• Auto parts: auto parts companies of all sizes are also

investing to improve their productivity levels, broaden

their production capacity and develop new products.

Projected investment by car manufacturers will require a

120% increase in the production of auto parts, and might

generate up to 50,000 jobs. Investment announcements

are expected to reach US$460 million in 2008, twice the

amount of 2004.

Autoparts Trade Balance (in US$ millions)

Automotive Production Trade Balance (in thousands of units)

Exports Imports Trade Balance

�00� �004 �005 �00� �007

�,000

�,000

4,000

�,000

0

-�,000

-4,000

-�,000

PERSPECTIVES

Sustained growth expectations. According to

ADEFA, the sustained growth trend in the sector will

keep up in the foreseeable future. Nine new models are

expected to begin production in Argentina between 2008

and 2010. In total, forecasts estimate that between 2007

and 2013 production will increase 85%, exports will double

and domestic market will grow by 30%. As a result, it is

expected that the share of the whole industry in GDP will

double between 2007 and 2013.

TRADE PERFORMANCE

Rising imports. The surge in demand during the last

five years triggered production as well as imports in

the industry. While automotive exports expanded at a

compound rate of 22% in the period 2002-07, imports

doubled this expansion rate, reaching a record high

number of 330,000 imported vehicles in 2007. Brazil was

the source of over 75% of vehicle imports in 2007, followed

by Mexico (5%) and Germany (5%). The elevated amount

of imported units surpassed exports in 2004 originating

a trade deficit of 14,000 units in 2007. The auto parts

segment also exhibits a trade deficit, due to high-speed

imports’ expansion (at a compound rate of 38%) since 2003.

An opportunity. This trade deficit represents an

opportunity for both automobiles and auto parts

manufacturers to further develop local production and

increase the share of nationally produced components in

the automotive global value chain.

544,��1�

745

�1�

��5��� 1005

�1�,4�55

44�501

5���4� ���

�007 �00� �00� �010 �011 �01� �01�0

�00

400

�00

�00

1000

1�00 Production Exports

Growth Projections (in thousand of units)

Source: Association of Argentine Auto Parts Manufacturers (AFAC)

Argentine Association of Automobile Manufacturers (ADEFA)

Source: Argentine Association of Automobile Manufacturers (ADEFA)

Exports Imports Trade Balance

�000 �001 �00� �00� �004 �005 �00� �007

400

�00

�00

100

0

-100

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III. Foundation for Success

ATTRACTIVE MARKET

Promising market potential. Vehicle penetration

in Argentina is elevated compared with Latin American

economies and other developing markets (146 vehicles per

1,000 population, vis-à-vis 149 in Mexico, 103 in Chile, 96

in Brazil and 81 in Venezuela), but still reduced compared

with developed markets. These figures entail room for

further sustaining the recent growth in sales, particularly

supported by a rising domestic purchasing power.

Mercosur. Argentina is a full member of Mercosur,

a common market also integrated by Brazil, Paraguay

and Uruguay. As such, Argentina has preferential

access to a regional market of 238 million inhabitants,

with a combined GDP of US$1,607 billion (2007). As

part of Mercosur, Argentina has concluded Economic

Complementation Agreements with Bolivia, Chile,

Colombia, Ecuador, Peru and Venezuela, enlarging the

potential market to 381 million consumers and a combined

GDP of US$2,346 billion.

LOCAL SKILLS AND TALENT

Industry expertise. Motor vehicle production has

been present in Argentina for more than six decades.

This tradition and experience in automotive production

is reflected in a highly qualified domestic labor force,

characterized by both well-built technical capabilities and

flexibility to adapt to a changing work environment.

Growing skills. This pool of high skilled workers

is permanently increased by professionals trained in

universities (including the National Technological

University) and technical schools (in some cases managed

by the own manufacturers, such as the case of the Henry

Ford School). Additionally, the National Network of

Professional Training in automotive mechanics was created

in 2004 jointly by the government, the Mechanics and

Automotives Transport Union (SMATA) and the Argentine

Federation of Auto-repair Shops (FAATRA). This network

is aimed at promoting professional education in the sector

at the national, provincial and municipal level.

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CASE STUDY

MERCEDES BENZ a leading automotive company increasing export production in Argentina

Mercedes Benz, one of the world’s premier automobile

companies, has been in Argentina for the past 57 years.

Since its arrival, the company has been a strong industrial

presence in the country with a demonstrated export

bias. Its industrial center “Juan Manuel Fangio,” located

in La Matanza (Province of Buenos Aires) reflects the

firm’s early commitment to investing and producing in

the country, as it was the first center ever to be located

outside the company’s country of origin, Germany.

In Argentina, Mercedes Benz is a full-liner company and

commercializes trucks, buses, vans and premium vehicles.

The company’s industrial center currently operates �4

hours a day and has more than �,700 employees. This

high production rates prompted the addition of more

than 100 new skilled employees in �007 and �00�.

Since 1���, Mercedes Benz Argentina produces and

exports the Sprinter passenger van model to more than

5� countries. More than �5% of production is exported

to countries in Europe, Asia, the Middle East, Oceania and

the Western Hemisphere, making Sprinter the Argentine

vehicle with the highest number of global destinations.

This locally produced vehicle has the same characteristics

and quality standards than those produced at Mercedes

Benz’ German headquarters, a fact that accounts for the

outstanding level of local labor.

Mercedes Benz Argentina has just concluded investments

for more than €�5 million in the creation of a new

assembly line and production platform in Argentina. The

passenger car built on this site is 100% destined to the

external market. The company is also working with a

number of local providers to develop national production

of auto parts for its vehicles and is investing more than

€1� million in this process. In addition, production of a

new chassis for urban buses (OF 141�) has just begun

and has been added to the production of the OH 1�15,

already made in Argentina.

INDUSTRY NETWORKING

ADEFA. Founded in 1961, ADEFA represents all the

automotive manufacturers in Argentina. The association’s

main purposes are to boost the local production of

vehicles, to foster investment in the automotive sector

and to promote the industry entrepreneurship and

competitiveness. Of particular importance among the

numerous activities carried out by ADEFA are those

intended to promote the specialization of the automotive

sector and a complementary symmetric system within the

Mercosur. Furthermore, ADEFA permanently seeks the

penetration of new markets for vehicles made in Argentina

and throughout Mercosur.

AFAC. Auto parts manufacturers are represented in

the Association of Argentine Auto Parts Manufacturers

(AFAC), an association founded in 1939 whose task is

the promotion of auto parts and all those necessary

components for the manufacturing and repair of

automobiles in the country. AFAC aims to improve and

strengthen the development of the auto parts business,

promote the development of the Argentine automobile

industry as a whole and promote exports.

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IV. Policy Initiatives

INCENTIVES

Local integration. Additionally, other policy initiatives

have been put in place to promote the auto parts sector,

including reimbursements to automobile manufacturers,

trade negotiations conducted by the national government

and a specific regime. A cash reimbursement fiscal benefit

is in place for vehicles produced domestically and that

have imported parts whose value do not exceed 30% of

the wholesale price of the final good (Decree 774/05).

Specifically, a company manufacturing vehicles in

Argentina receives a cash reimbursement equivalent to 6%

of the value of the locally produced parts being purchased.

In addition, a Domestic Auto Parts Promotion Law was

enacted in June 2008. The initiative projects a production

level of 500,000 engines and no less than 700,000

motorcycles by 2011, via the support of investment and

setting of new tax benefits. This includes reimbursement

of 8% over the total domestic auto parts acquired by

manufacturers during the first year. The reimbursement

levels will be progressively reduced to 7% for the second

year and 6% for the third. In relation to local components

used for engines and transmission gears, reimbursement

percentages are 10% for the first year and are then

progressively reduced to 6% on the fifth year (total period

covered by the initiative).

REGIONAL TRADE

Special trade regime with Brazil. The automotive

sector enjoys significant government support, benefiting

from a special trade regime with Brazil and various

incentives for manufacturers. As part of Mercosur, both

Argentina and Brazil share a common external tariff

(CET) of 35% for finished products (with an inferior

tariff in Argentina for trucks and buses) and of 14-18% for

non-locally produced parts. In 1994, the two countries

signed a bilateral trade agreement, providing for duty-free

trade both in automobiles and auto parts, subject to the

requirements of national regimes. Currently, zero-rate

tariffs for bilateral trade are in place, subject to (decreasing)

balanced trade requirements and regional and national

content requirements. Bilateral trade with Brazil is tariff-

exempt within a “flex” mechanism, which determines the

level of Brazilian imports in relation to Argentine exports

(tariffs apply if this level is exceeded). This mechanism is

aimed at protecting the domestic industry as it gains global

competitiveness. Currently, an asymmetric “flex” is in place,

favouring Argentine exports within Mercosur (Argentina

can export US$2.50 for every US$1.95 imported). This

new system encourages investment plans by setting a

predictable framework for the next five years and looks to

foster the share of domestic auto parts in bilateral trade .

Trade with Mexico. In 2006, Argentina and Mexico

eliminated all bilateral trade barriers in automobile trade

and in June 2006 numerous tariffs were abolished in the

auto parts sector.

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1�

V. Main Challenges

Industry players and government agencies face key

challenges to sustain growth and consolidate the sector’s

competitiveness. In themselves, these challenges present

attractive opportunities for the industry and Argentina.

• Improve the local industry’s insertion in the

global value chain: encourage more investment in

training and R&D, in order to increase the industry’s

capacity to migrate towards higher value-added

activities.

• Pursue a balanced development of the sector’s

local value chain: the surge in automobile

manufacturing should serve as a basis for a strong

increase in domestic auto parts production. A closer

integration between manufacturers and local auto

parts suppliers has the potential to increase the sector’s

competitiveness and encourage technological advances.

• Take full advantage from a demanding domestic

and regional market: the advanced level of

development of the domestic and regional markets

presents an attractive opportunity for the sale of models

adapted to regional consumer demands.

• Continue to strengthen the sector’s public-

private partnership: a sustained increase of the

industry’s competitiveness will require a coordinated

effort by public and private players, among other actions

promoting Argentina as an increasingly attractive option

for international manufacturers to locate production

facilities.

OUR CHALLENGES ARE YOUR OPPORTUNITIES.

SOURCES: The trends, data and figures included in this material were elaborated by ProsperAr on the basis of: National Institute of Statistics and Census; CEP; ADEFA; AFAC; López, A. (coord.), “Complementación Productiva en la Industria Automotriz en el Mercosur”, (�007); The International Organization of Motor Vehicle Manufacturers; Automotive Forecast, The Economist Intelligence Unit, January �00�; and Auto Report �00�/�007, International Metalworker’s Federation.

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The information provided through this brochure does not constitute legal or professional advice whatsoever. ProsperAr (Agencia Nacional de Desarrollo de Inversiones) reserves the right to revise, amend, alter or delete the information provided herein at any time, but shall not be responsible for or liable in respect of any such revisions, amendments, alterations or deletions.Photos: courtesy of Basso, Stock Exchange and Flickr under Creative Commons license.

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Argentina at a glance

Country profile

Official name República Argentina

Capital city Buenos Aires

Main cities Córdoba, La Plata, Mar del Plata, Mendoza, Rosario

Surface area �.7 million square kilometers

Population 40.� million inhabitants

Population growth 1.0% per year

Adult literacy rate ��%

Life expectancy at birth 75 years

GDP per capita (PPP) US$ 14,41�

Currency Argentine peso ($)

Form of government Federal Presidential Republic

Political division �� autonomous provinces and the Autonomous City of Buenos Aires

Time zone GMT-0�:00

Official language Spanish

�00� �004 �005 �00� �007 �00�

GDP growth rate (annual %) �.�% �.0% �.�% �.5% �.7% 7.0%

GDP (PPP) (millions of US$) ���,��� �7�,041 41�,5�� 4��,750 5�4,140 57�,��0

GDP (millions of US$) 1��,07� 15�,15� 1�1,��7 �1�,��� ��0,��� ���,50�

Exports of goods and services (millions of US$) �4,4�� ��,��4 47,0�4 54,547 ��,0�� ��,�0�

Imports of goods and services (millions of US$) 1�,��7 �7,��0 �4,��� 41,1�0 5�,�5� �7,4��

Balance of trade of goods and services (millions of US$) 15,�1� 11,��4 1�,0�5 1�,4�7 1�,7�5 15,115

Trade surplus (% of GDP) 1�.�% 7.�% �.�% �.�% 4.�% 4.�%

Current account surplus (% of GDP) �.4% �.1% �.�% �.�% �.7% �.�%

Primary fiscal surplus (% of GDP) �.�% �.�% �.7% �.5% �.�% �.1%

Gross capital formation (% of GDP, constant prices) 14.�% 17.7% 1�.�% �1.�% ��.�% ��.0%

Gross national savings (% of GDP, current prices) 1�.�% �0.�% ��.7% ��.4% ��.�% ��.7%E

Foreign direct investment (millions of US$) 1,�5� 4,1�5 5,��5 5,5�7 �,47� 7,�7�

Exchange rate ($/US$) �.�5 �.�4 �.�� �.07 �.1� �.1�

Foreign reserves (millions of US$) 14,11� 1�,�4� ��,077 ��,0�7 4�,17� 4�,���

Unemployment rate (% of EAP) 17.�% 1�.�% 11.�% 10.�% �.5% 7.�%

Source: ProsperAr based on data provided by the Argentine National Institute of Statistics and Census, the Central Bank’s Market Expectations Survey (REM), the International Monetary Fund and the United Nations Conference on Trade and Development (as of April �0, �00�).

Main Economic Indicators

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for innovation and entrepreneurship and promoting overall competitiveness are key aspects of

the Agency’s strategy. Two programs “Entreprenuer Development” and “Pioneers” are in place to

strengthen local companies’ critical capacities in different growth phases. ProsperAr also assists

international companies to invest in and/or work with their local counterparts to form global joint

ventures.

ProsperAr is your strategic partner to invest and prosper in Argentina.

What ProsperAr can do for you:

>> Provide timely and relevant information on business sectors and geographical locations in Argentina.

>> Help identify investment and innovation opportunities in strategic sectors.>> Troubleshoot red tape and obstacles; facilitate the investment process and doing

business in Argentina.>> Assist in building partnerships between foreign investors and local companies.

Page 16: Automotive Industry in Argentina

To learn more about how investing in AUTOMOTIVE INDUSTRY in Argentina can benefit you, please contact us:

[email protected]+54 11 4328 9510