The price of 0 km cars rose in 2020 above inflation and the dollar.

FEBRUARY 23, 2021
Sharp rise in 0 km

The price of zero kilometer cars rose 39.5 percent on average during 2020 in Argentina. This means that it increased more than inflation (36.1 percent, according to Indec) and the dollar (38 percent). It also, of course, moved away from the increase in salaries of citizens in general.

The figure was revealed by the Automotive Sector Price Index (IPSA), which is based on information from the online system of values managed by the Association of Automotive Dealers of the Argentine Republic (Acara).

According to the same index, the price of 0km vehicles grew by 3.7 percent on average between December and January. In this case, the increase did not exceed the increases in the dollar and the consumer price index (CPI), both of which rose by 4 percent last month.

Among the cheapest 0 km cars in the country, there are no options below one million pesos. The most "accessible" today are: Chery QQ (from $1.07 million), Fiat Mobi (from $1.13 million), Toyota Etios (from $1.19 million), Renault Kwid (from $1.21 million), Volkswagen Gol (from $1.22 million), Ford Ka (from $1.25 million), Nissan V-Drive (from $1.29 million) and Chevrolet Onix Joy (from $1.30 million).

Getting to zero is increasingly difficult for most of the Argentine population. Such is the case that, in 2020, a total of 342,474 units were sold at the country's dealerships. That figure marked a 25.5 percent drop compared to 2019, which had also been one of recession.

Dealers understand that "it is still too early to speculate on what will happen in the market this year," but most locals expect a total market around 400 thousand units, which would mean a growth of more than 50 thousand units versus 2020.

Acara's president, Ricardo Salomé, was somewhat more positive: "Except for January and December, which due to a seasonal issue show different numbers, we are optimistic that we can have a positive year establishing a level of activity with a floor of 430 thousand patents in the year, if we have the supply and the necessary incentive measures", he stated.

"We know that the terminals are also accompanying this recovery and will increase the supply of vehicles in the coming weeks, which will make the supply of units and models even more dynamic", said the president of the entity that brings together Argentina's dealers.

Source: TN Autos

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