The auto parts sector activity closed 2023 with a drop of 1% compared to the same month in 2022, according to the report from the Association of Argentine Component Factories (AFAC).
The entity indicated that “December registered an increase of 6.9% compared to the same month in 2022” but “when compared to November 2023, a reduction of 17.9% was verified.”
“In all areas associated with the chain, a similar dynamics compared to the previous month (a drop in activity). Although part of this behavior was due to a seasonal issue (holiday break in most terminals), the current situation also had an impact on the result,” AFAC detailed.
Auto parts: the behavior of the month according to the segment
The report analyzed the exports of the three main segments of the auto parts businesswhich are vehicle production, parts exports and the independent replacement market.
The vehicle production increased during the January-December 2023 period by 13.7% compared to the same period in 2022, closing the year with 610,715 units manufactured.
December presented a drop in production levels in relation to November, which was 34.6%and when comparing it with December 2022 the result was a slight decrease of 0.4%.
The auto parts exports, Meanwhile, they had a year-on-year drop of 3.8% during the period analyzed, and December registered a significant reduction of 26.4% compared to November.
For the segment of replacement marketwhen considering fuel sales as an approximate indicator of its level of activity, an increase of 1.9% year-on-year was observed for 2023.
However, when comparing December against November, a reduction of 4.1% was observed, and if it is compared with December 2022, the drop is 1.3%, he concluded.
Source: Ambito
