High dependence from Brazil`s market and lack of demand continues to lash Argentinean automotive sector, Kallanish notes from the latest results of the local association of automotive producers (ADEFA).

In February, the sector produced 24,036 vehicles, almost -30% less than the volume registered in the same month of 2016 and down -10.2% in comparison with January 2017.

According to ADEFA, automotive producers have exported 12,931 vehicles in February. This is a 32.6% increase month-on-month, but down by -8.8% in comparison to February 2016.

"Production and export volumes are reflecting the fall in demand in Brazil, which registered a decrease of 65% in February" said from ADEFA, underscoring the dependance of the Argentian production to the Brazilian demand.

As a result of the fall in demand in the Brazilian market, two of main producers in Argentina General Motors and VW have announced adjustments to its production volumes in the country and started implementing production suspension plans.

The main destination of Argentinean production continues to be Brazil, but more manufacturers are starting to increase their exports to Guatemala, Panama, Costa Rica, Honduras, Peru and New Zealand.