BUENOS AIRES, May 12 (UPI) -- Argentina's auto parts industry is facing a sharp downturn as vehicle production declines, imports rise and automakers use fewer locally made components in new models.
Industry leaders say the crisis also reflects a lack of domestic investment in some manufacturing segments and the trade liberalization policies promoted by President Javier Milei.
Sector activity fell 22.5% during the first two months of 2026 compared with the same period last year, according to a report by the Asociación de Fábricas Argentinas de Componentes, known as AFAC.
Vehicle production dropped 30.1% during the same period, while auto parts exports declined 14.7% year over year.
AFAC Executive President Juan Cantarella told UPI that Argentina has nearly 16 million cars, with an average age of almost 15 years, which continues to support demand for replacement parts. He warned that both the manufacturing and aftermarket segments are under pressure.
