[REVISION HISTORY]

Argentine industrial and automotive production decline

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2026-08-25 23:42 UTC → 2026-08-26 08:36 UTC · added ~~removed~~

Argentina is experiencing a decline in industrial activity and automotive production. In August 2026, Stellantis announced significant production cuts for the Fiat Titano and RAM Dakota pickup trucks at its Córdoba facility, reducing output by over 30% to align with a sharp drop in vehicle registrations. By late August, data from the Centro de Estudios de la Unión Industrial Argentina (CEU-UIA) indicated that overall industrial production fell 2% during the first seven months of 2026 compared to the previous year. While July showed a slight year-on-year increase of approximately 1.4%, experts noted this was largely due to a low comparison base rather than a sustained recovery. Monthly activity in July remained relatively stable, showing a slight contraction of 0.6% after seasonal adjustments. The automotive sector remains under heavy pressure; the Asociación de Fábricas Argentinas de Componentes (AFAC) reported a 6.7% year-on-year drop in the first half of the year, contributing to an 18% year-to-date decline in national production. Other sectors are also struggling. Construction and agricultural machinery have reported significant declines, including a 4.6% monthly drop in cement shipments and a 28% decrease in agricultural machinery production in Santa Fe. Conversely, some sectors showed resilience; steel production rose 3.4% in July, while basic metal, chemical, and food and beverage industries recorded increases. In response to these challenges, the UIA is lobbying for stricter sanctions within the RIGI framework to enforce a 20% local procurement quota intended to protect domestic manufacturing. Broader economic distress is evident in consumer spending and the labor market. Real supermarket sales fell by 9.2% in the first half of the year compared to the nine-year average, with some provinces recording their worst performance in nearly a decade.

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