Car production could grow 70% in 2021, said Herrero from Adefa

NOVEMBER 18, 2020

The president of the Association of Automotive Manufacturers (Adefa), Daniel Herrero, anticipated yesterday that the industry projects for 2021 a national production of 440,000 units, almost 70% more than what is expected for the closing of 2020, which was marked by two months of plant shutdown due to the coronavirus pandemic.

This was revealed by Herrero in his role as president of Toyota, who led the presentation of the new Hilux pick-up, which is produced at the Buenos Aires plant in Zarate.

"We expect the associates in Adefa for next year a market of about 460,000 to 470,000 units, and about 440,000 production units", said the executive in a dialogue with the press, assuring that the sector is "going in the right direction".

If the projections of the automotive industry are confirmed, the increase in production would be in the order of 70% compared to the forecast for 2020 of about 250,000 to 260,000 units of domestic manufacturing, as has been projected by the sector and as confirmed by a recent report by Abeceb.

In the presentation, the executive anticipated that the new Hilux already has 130,000 orders for 2021, just below the capacity of the Zarate plant, which is 140,000 units per year. In the last two months, the Japanese company expects to assemble 18,000 (14,000 would be for export). In all 2020, the production would be of 95,000 KM. In addition, it promised a hybrid Hilux before 2025.

In the case of patents, the year-on-year increase would be just over 40% if we take into account the optimistic projections for the end of 2020, which speak of 330,000 sales in the dealerships, and in line with the reports of the Association of Automotive Dealerships (Acara).

"We must continue working and the dialogue is yielding results," said Herrero in reference to the recent formation of the automotive industry's board, within the framework of the Economic and Social Agreement promoted by the Government, together with the union sectors and the auto parts value chain.

Within this framework, the terminals ratified their investment projects for some US$ 5 billion by 2021 and advanced with the Government a bill to promote the development of the sector and declare it strategic for production.

"In the last few months we decided at a table to dialogue and reach consensus on how much we saw of the market, how much we wanted to produce in Argentina and how much we wanted to import, and among all the actors to ratify and respect an agreement that has been working", said the head of Adefa, whose new mandate is in dispute.

In that sense, Herrero raised the need to take up again those estimates in the framework of the sectorial table "to think again about those equation variables that we want for next year".

The industrial executive also expressed that "the exchange rate gap is not something that can be said to influence prices, because most transactions are in the official dollar. However, he noted that "as the gap widens there is a demand for vehicles to take advantage of a special situation, but none of the terminals make a price decision because of the gap.

As an example, he cited that currently, Hilux, the Toyota model that has been leading its segment for fourteen years, "is at its cheapest value per kilo of soybeans.

Source: El Economista

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