Argentina’s autoparts business registered a 22.5 % year-on-year contraction within the first two months of 2026 in opposition to the identical interval of 2025, per the Asociación de Fábricas Argentinas de Componentes (AFAC).
The Javier Milei authorities’s import liberalization and decreased bureaucratic controls drove autoparts imports up 11.6 % in 2025 to 10.319 billion U.S. {dollars}, with firms together with Sweden’s SKF and U.S.-based Dana closing some Argentine crops.
The sector misplaced 4,100 direct jobs in 2025 (-7.7 %), bringing whole employment to 49,600 from 53,700, and AFAC tasks one other 7.5 % vehicle-production decline for 2026.
Key Factors
— Argentina autoparts manufacturing fell 22.5 % year-on-year in January-February 2026, per AFAC.
— Automobile manufacturing additionally dropped 30.1 % within the bimester, reaching 50,630 items.
— Argentine autoparts imports grew 11.6 % in 2025 to 10.319 billion U.S. {dollars}.
— SKF (Sweden) and Dana (U.S.) have closed some Argentine crops; Stellantis and Basic Motors have suspended employees.
— Sector misplaced 4,100 direct jobs in 2025 (-7.7 %), with 80.5 % of the decline tied to local-vehicle-production companies.
— Complete automotive output reached 490,000 automobiles in 2025; 280,000 exported, principally to Brazil.
— Universidad Di Tella government-confidence index fell 12 % month-on-month to 2.02 of 5.
What AFAC Reported
The Asociación de Fábricas Argentinas de Componentes (AFAC) reviews the sector’s Index of Industrial Manufacturing (IPI) for autoparts contracted 22.5 % within the first bimester of 2026 in opposition to the identical interval in 2025. Automobile manufacturing in the identical interval dropped 30.1 % to 50,630 items, autoparts exports fell 14.7 %, and gas gross sales decreased 0.3 %. February 2026 alone confirmed a 49.9 % month-to-month rebound from January, suggesting a technical bounce moderately than a consolidated restoration.
Argentina’s autoparts imports grew 11.6 % in 2025 to 10.319 billion U.S. {dollars}, the very best degree on file. The Milei authorities’s discount of import tariffs and elimination of bureaucratic controls has been the principal driver, alongside low cost exchange-rate dynamics that drawback native producers competing with Asian and Chinese language imports.
Plant Closures and Job Losses
Sweden’s SKF and U.S.-based Dana have closed a few of their Argentine autoparts crops, whereas terminal-vehicle producers Stellantis and Basic Motors have suspended employees. Complete automotive manufacturing was 490,000 automobiles in 2025, with 280,000 exported principally to Brazil. Q1 2026 car manufacturing fell 19 % in opposition to the identical interval of 2025.
Why It Issues
The Rio Occasions, the Latin American monetary information outlet, reviews that the autoparts collapse is probably the most seen manifestation of the trade-off in Milei’s macro stabilization programme: the trade-policy opening has stabilized the peso and tamed inflation, however small and medium industrial producers weren’t ready for unfettered worldwide competitors.
Sector employment fell 7.7 % year-on-year, with 80.5 % of the decline concentrated in companies tied to native car manufacturing. The Universidad Di Tella government-confidence index fell 12 % month-on-month to 2.02 of a 0-to-5 scale, whereas Giacobbe and Asociados polling reveals Milei’s reputation down practically 6 factors to 36 %. AFAC president Juan Cantarella has known as for “extra real looking Mercosur guidelines of origin” with better regional industrial content material and an Argentine tariff coverage on China aligned with U.S. and EU coverage.
| Indicator | Studying | Interval |
|---|---|---|
| Autoparts manufacturing | -22.5% YoY | Jan-Feb 2026 |
| Automobile manufacturing | 50,630 items (-30.1% YoY) | Jan-Feb 2026 |
| Q1 2026 car manufacturing | -19% YoY | Q1 2026 |
| Autoparts imports 2025 | USD 10.319 billion | Full 12 months 2025 |
| Direct employment 2025 | 49,600 (-4,100, -7.7%) | vs 2024 |
| Complete car manufacturing | 490,000 items | Full 12 months 2025 |
| Automobile exports | 280,000 items | Full 12 months 2025, principally Brazil |
Linked Protection
For broader Argentina protection, see our reporting on the ARCA tax income contraction and Milei’s Milken speech and our evaluation of the Argentina holdouts deal, each of which contextualize the broader macro framework across the autoparts disaster.
What Occurs Subsequent
- 2026 car manufacturing projection: AFAC tasks one other 7.5 % decline in Argentine car manufacturing for the complete 12 months, in opposition to a BBVA Analysis forecast of 600,000 unit market gross sales.
- Mercosur guidelines of origin debate: Cantarella and Brazil’s Sindipeças president Cláudio Sahad have aligned in calling for stricter regional content material guidelines to restrict “Frankenstein” automobiles with 84 % extra-zone parts.
- Mid-term electoral overlap: Milei’s reputation has fallen practically 6 factors to 36 % per Giacobbe; the autoparts disaster is without doubt one of the most seen indicators of the trade-off in shock remedy.
Continuously Requested Questions
What’s the Argentina autoparts manufacturing drop in 2026?
Argentina’s autoparts business registered a 22.5 % year-on-year contraction within the first two months of 2026 in opposition to the identical interval in 2025, per the Asociación de Fábricas Argentinas de Componentes (AFAC). Automobile manufacturing in the identical interval dropped 30.1 % to 50,630 items. February 2026 alone confirmed a 49.9 % month-to-month rebound from January, however the underlying trajectory stays destructive in opposition to 2025 base ranges.
What’s driving the autoparts decline?
President Javier Milei’s discount of import tariffs and elimination of bureaucratic controls drove autoparts imports up 11.6 % in 2025 to 10.319 billion U.S. {dollars}. Firms together with Sweden’s SKF and U.S.-based Dana have closed some Argentine crops, whereas Stellantis and Basic Motors have suspended employees. The sector misplaced 4,100 direct jobs in 2025 (-7.7 %), with 80.5 % of the decline concentrated in companies tied to native car manufacturing.
How does the autoparts disaster connect with Milei’s total programme?
The autoparts collapse is probably the most seen manifestation of the trade-off in Milei’s macro stabilization: the trade-policy opening has stabilized the peso and tamed inflation, however small and medium industrial producers weren’t ready for unfettered worldwide competitors. Milei’s reputation has fallen practically 6 factors to 36 % per Giacobbe and Asociados, whereas the Universidad Di Tella government-confidence index fell 12 % month-on-month to 2.02 of a 0-to-5 scale.
What does AFAC suggest to handle the disaster?
AFAC president Juan Cantarella has known as for “extra real looking Mercosur guidelines of origin” with better regional industrial content material, plus an Argentine tariff coverage on China aligned with U.S. and EU insurance policies. Cantarella warns that present Mercosur guidelines enable automobiles to be thought-about Mercosur-origin and tariff-free even with 84 % extra-zone autoparts content material. AFAC tasks one other 7.5 % decline in Argentine car manufacturing for the complete 12 months 2026.
Up to date: 2026-05-05T14:00:00Z by Rio Occasions Editorial Desk
