Download Automotive Industry In Argentina

INVESTMENT OPPORTUNITIES
Automotive Industry
in Argentina
Driven to meet global market needs
Highlights
>> A STRONG LOCAL INDUSTRY IN A PROMISING CONTEXT
The global automotive industry is currently registering record production levels,
mainly driven by an increasing demand and export dynamism in developing
economies. A heavyweight in Argentina’s manufacturing sector, the automotive
industry is a growth leader.
>>OUTSTANDING PRODUCTION AND EXPORT PERFORMANCE
Rocketing exports and domestic sales are driving Argentina’s automotive
production, which has almost doubled since 2002. Automobile production grew
almost 30% per year over a five year period, reaching a record high of 545,000
units in 2007. Manufacturers’ decision to use Argentina as an export platform
for some models gave a big push to exports, which grew 22% per year in the
same five year period.
>>FIRST CLASS INTERNATIONAL PLAYERS
International corporations with a historical presence in Argentina—like
Fiat, Ford, General Motors, Mercedes Benz, Peugeot-Citröen, Renault and
Volkswagen—as well as more recent arrivals—like Toyota—are making
substantial investments to expand production capacities and improve
technological capabilities. This dynamic industry is at the forefront of
Argentina’s manufacturing sector.
>>A BOOMING AUTO PARTS INDUSTRY
The auto parts industry is booming. Auto parts manufacturers are seeing
increased demand as automakers roll out new models, increase production
capacity and move to outsource more of their needs. Current trends signal
an important opportunity for domestic auto part suppliers to upgrade their
production by working closely with automobile manufacturers with global
presence.
>> ATTRACTIVE AND PROFITABLE SEGMENTS
Regional market growth, local skills and the country’s competitive exchange
rate have opened profitable investment opportunities in the automobile, truck
and motorcycle manufacturing segments.
I. Why Invest in Automotive Industry in Argentina?
• PROMISING GLOBAL OUTLOOK. The global automotive
• FROM ARGENTINA TO MERCOSUR AND THE WORLD.
industry has reached record production levels. With
Domestic production in the automotive industry is
over 70 million motor vehicles produced in more than
increasingly oriented towards both Mercosur and the
40 countries, this industry has seen steady growth
global market, apart from satisfying the expanding
over the past years. With global annual growth rates of
domestic demand. Key global players in the sector have
approximately 3%, performance has been diverse across
chosen the country as an export platform to produce
regions. The highly fragmented global auto parts and
specific models to supply the growing regional market
equipment market is valued at over US$500 billion.
and, furthermore, to export automobiles from Argentina
to the rest of the world.
• A NEW ROLE FOR EMERGING ECONOMIES.
A remarkable trend of the last decades is the growing share
• PROFITABLE OPPORTUNITIES: AUTO PARTS
of emerging economies in global automotive production.
MANUFACTURING. In Argentina, auto part manufacturing
New corporate strategies oriented towards the global and
has mirrored the growth pattern in motor vehicle
regional markets have sought to increase competitiveness,
production and investments in the sector have also led to
reduce costs and expand the product mix. With a thriving
auto parts exports’ reaching unprecedented levels. Intense
auto sector, the Asia-Pacific region doubled its production
competition has led auto parts manufacturers to focus on
in the last decade, while South American output grew 50%
certain elements of the value chain. Top performers in this
during this period and Eastern Europe’s over 30%. With
market have been able to incorporate modern production
a demand previously concentrated in fewer regions, the
technologies and best practices, and have concentrated
auto parts and equipment market has also grown rapidly in
on high-tech segments of the market. Due to past and
emerging countries.
projected investments, Argentina is well positioned to
compete successfully in this global market.
• STRONG FOUNDATION FOR SUCCESS. In Argentina, the
automotive industry is highly dynamic and remains a
leader in the country’s overall manufacturing production.
Argentina’s strong economic growth has also encouraged
Vehicle production has more than tripled since 2002 and
a rise in demand for trucks and motorcycles. Currently,
strong growth is expected to continue. Access to new
demand in these two markets is mainly met by imports.
markets, large Foreign Direct Investment (FDI) inflows,
Although domestic production has increased in response
regional cooperation and the country’s competitive
to this trend, there is still a sizable opportunity for local
exchange rate have increased the sector’s technological
manufacturers to increase their market shares.
know-how and driven growth.
• ATTRACTIVE SEGMENTS: TRUCKS AND MOTORCYCLES.
II. Sector Structure and Performance
INDUSTRY STRUCTURE
SECTOR PERFORMANCE
Manufacturers. There are ten manufacturers present
A key sector. The automotive industry is a key
in Argentina –Fiat, Ford, General Motors, Iveco, Mercedes
contributor to manufacturing production and exports in
Benz, PSA Peugeot-Citroën, Renault, Scania, Toyota and
Argentina. In 2007, it represented 2.5% of GDP (including
Volkswagen– producing a total of 18 different models. A
automotive parts manufacturing), 8.5% of industrial
few of the models are commercial vehicles, however the
production and 10% of exports. The automotive industry
majority are passenger cars.
remains one of the principal engines of industrial growth
and technology transfer. A sustained expansion in both
Vehicle Production by Company (2007)
Iveco
1%
Mercedes Benz
5%
VW 11%
Peugeot %
Renault 1%
GM 1%
Toyota 1%
Ford 1%
domestic demand and exports has supported continued
fast growth in the sector: production expanded at an
average rate of 29% per year during 2002-07 and the
industry reached record high production numbers. As a
result, automotive production explained more than 30% of
growth in the country’s industrial production over the past
three years. Exports and employment also boomed steadily
since 2002: exports were up 22% per year in the last five
years (as some manufacturers have chosen Argentina as
an export platform for certain models) and employment
Argentine Association of Automobile Manufacturers (ADEFA)
increased 55% between 2002 and 2007.
Production and Exports of Vehicles (in thousands of units)
Production and sales. Regarding production, Peugeot
was the leader in 2007, followed by Ford and GM. Toyota
00
is one of the fastest-growing manufacturers in Argentina,
500
thanks to large investments since 2002. Honda has also
400
announced its establishment in the country in 2009.
00
In terms of sales, Volkswagen was the market leader in
2007, accounting for 22% of the market. General Motors is
the second-largest company in Argentina regarding sales,
with 16% in 2007. Ford and Peugeot-Citroën share the
third place with 14% market share each.
Production
Exports
00
100
0
000
001
00
00
004
005
00
007
Argentine Association of Automobile Manufacturers (ADEFA)
Auto parts. In addition to manufacturers’ activities,
Record production and export levels. A record-
Argentina has developed a large auto parts industry
high level of 545,000 units was produced in 2007 (64%
comprised by more than 400 companies. This segment
passenger cars, 36% commercial vehicles), comfortably
creates 62,000 jobs, vis-à-vis less than 20,000 jobs at the
surpassing the previous peak of 1998. In 2007, 58% of
manufacturers. Most firms are located in the provinces of
the vehicles produced were exported, reaching a new
Buenos Aires, Córdoba and Santa Fe.
exporting record of 316,000 units. Brazil accounted for
over one-half of Argentina’s vehicle exports. However, the
export base has diversified in recent years, reaching 84
different countries in 2007, with Mexico (13% of exports),
Venezuela (5%) and Chile (5%) becoming increasingly
important markets. Triggered by growing automotive
production, automotive parts sales also expanded
significantly between 2002 and 2007 (at a compound
higher in the provinces than in the city of Buenos Aires.
annual rate of 24%) and peaked at US$5.5 billion in 2007.
The domestic market for motorcycles has boomed over
Auto parts exports have doubled in the last five years,
the past five years, reaching 680,000 units sold in 2007,
reaching an unprecedented level of US$2.2 billion in 2007.
compared to 12,000 units sold in 2002. Production
increased significantly to keep up with rising demand,
Innovation. Large inflows of FDI expanded production
peaking at over a quarter million units. Demand was
capacities and brought technological know-how for
fostered as a result of the strong economic growth of the
process improvements. All automotive companies
past years, the recovery of purchasing power, employment,
currently operating in Argentina increased their
consumption and the widening gap between prices of
production levels to meet the rising local and external
automobiles and motorcycles. During this period, imports
demand. At the same time, the industry started playing
(634,000 units in 2007) grew even faster than production
a more important role internationally when the
(at a compound annual growth rate of 128% between 2002
manufacturing of new models was set in the country: seven
and 2007 vis-à-vis a rate of 121% for production during the
new models were introduced between 2003 and 2007.
same period). Over 90% of imported models, mainly small
motorcycles, come from China.
INDUSTRY SEGMENTS
INVESTMENT
Some new segments are gaining share in vehicle
production and represent attractive investment
The strong recovery of automotive production has
opportunities. Car production accounted for 64.4% of total
prompted strong investment commitments on behalf of
production in the industry and light commercial vehicles
a number of manufacturers. According to the Argentine
represented 34.6% in 2007. Heavy trucks, coaches and
Association of Automobile Manufacturers (ADEFA),
buses represented the remaining 1%. Regarding sales, cars
manufacturers have invested US$1.2 billion in facilities
accounted for the lion‘s share of the domestic market with
since 2003 and estimate that investment will exceed US$3.5
75% of the total, light commercial vehicles accounted for
billion between 2007 and 2010; over US$1.7 billion in 2007
20% of total sales, and heavy trucks, coaches and buses for
alone. This would increase output to 800,000 units by 2010.
the remaining 5%.
• Volkswagen announced a US$100 million investment
Trucks. Demand for trucks has increased stimulated
to expand current capacity for the production of
by the economic growth over the past five years and
transmission gears; and another US$320.5 million to
particularly by the agriculture boom. IVECO is the only
manufacture its first pick-up truck, with an estimated
truck manufacturer in Argentina (5,100 units in 2007). The
domestic market is mostly supplied by imports. Production
output of 90,000 units in 2009.
• Ford: will invest US$161 million for the production of
has grown steadily since 2002 to meet the increasing
a new medium-sized model in 2008 and a new pick-
demand; however imports increased faster than
up truck in 2010. In 2006, the completion of previous
production. Currently imports are 3.5 times the level of
investment projects resulted in an increase in production
domestic production.
from 300 units per day to 340 units.
• PSA Peugeot-Citroën: announced a US$24 million
Motorcycles. Both world-class foreign companies
investment to expand current capacity and to increase
(Honda, Yamaha, Cagiva, BMW, Gilera, Jawa) and
the integration of local parts in their domestic
domestic firms are players in the local motorcycle
production. ¤76 million were already invested to start
industry. The most important motorcycle manufacturers
are located in the province of Buenos Aires. Additional
the production of the new Citroën C4.
• Toyota: announced an investment of US$41.5 million
companies are located in the provinces of Córdoba, Santa
to increase production of auto parts. Toyota has so far
Fe, San Luis, San Juan and Catamarca. Demand remains
invested US$ 1 billion in Argentina.
• Honda: is investing US$100 million in a new plant in the
TRADE PERFORMANCE
city of Campana to produce a new medium-sized model.
The start of production of 30,000 units is projected for
Rising imports. The surge in demand during the last
2009, two-thirds of which is expected to be exported
five years triggered production as well as imports in
to Brazil.
the industry. While automotive exports expanded at a
• Mercedes Benz: announced a US$50 million capital
compound rate of 22% in the period 2002-07, imports
investment to produce the NCV3, a new commercial
doubled this expansion rate, reaching a record high
vehicle.
number of 330,000 imported vehicles in 2007. Brazil was
• General Motors: announced a US$200 million
the source of over 75% of vehicle imports in 2007, followed
investment for the production of a new model at the
by Mexico (5%) and Germany (5%). The elevated amount
company’s plant in Rosario.
of imported units surpassed exports in 2004 originating
• Fiat: following an agreement between Fiat and Tata
a trade deficit of 14,000 units in 2007. The auto parts
Motors, the Fiat plant in Ferreyra in the province of
segment also exhibits a trade deficit, due to high-speed
Córdoba is expected to reopen to manufacture a new
imports’ expansion (at a compound rate of 38%) since 2003.
medium-sized car model and a pick-up truck. In 2008,
the company will invest US$60 million to produce
An opportunity. This trade deficit represents an
50,000 units per year of the Siena model.
opportunity for both automobiles and auto parts
• Renault: announced a US$80 million investment for
manufacturers to further develop local production and
the production of a new vehicle, and to increase the
increase the share of nationally produced components in
production of the Kangoo and Clio models.
the automotive global value chain.
• Auto parts: auto parts companies of all sizes are also
investing to improve their productivity levels, broaden
their production capacity and develop new products.
Projected investment by car manufacturers will require a
120% increase in the production of auto parts, and might
generate up to 50,000 jobs. Investment announcements
are expected to reach US$460 million in 2008, twice the
amount of 2004.
Growth Projections (in thousand of units)
100
Production
Exports
1005
1000
5
1
00
745
1
00
5
544,
44
400
4
501
55
1,4
00
0
007
Automotive Production Trade Balance (in thousands of units)
400
Exports
Imports
Tr ade Balance
00
00
010
011
01
01
Argentine Association of Automobile Manufacturers (ADEFA)
PERSPECTIVES
00
00
Sustained growth expectations. According to
100
ADEFA, the sustained growth trend in the sector will
0
000
-100
001
00
00
004
005
00
007
Source: Argentine Association of Automobile Manufacturers (ADEFA)
keep up in the foreseeable future. Nine new models are
expected to begin production in Argentina between 2008
and 2010. In total, forecasts estimate that between 2007
Autoparts Trade Balance (in US$ millions)
,000
Exports
Imports
and 2013 production will increase 85%, exports will double
Tr ade Balance
,000
and domestic market will grow by 30%. As a result, it is
4,000
expected that the share of the whole industry in GDP will
,000
0
double between 2007 and 2013.
00
004
005
00
007
-,000
-4,000
-,000
Source: Association of Argentine Auto Parts Manufacturers (AFAC)
III. Foundation for Success
LOCAL SKILLS AND TALENT
ATTRACTIVE MARKET
Industry expertise. Motor vehicle production has
Promising market potential. Vehicle penetration
been present in Argentina for more than six decades.
in Argentina is elevated compared with Latin American
This tradition and experience in automotive production
economies and other developing markets (146 vehicles per
is reflected in a highly qualified domestic labor force,
1,000 population, vis-à-vis 149 in Mexico, 103 in Chile, 96
characterized by both well-built technical capabilities and
in Brazil and 81 in Venezuela), but still reduced compared
flexibility to adapt to a changing work environment.
with developed markets. These figures entail room for
further sustaining the recent growth in sales, particularly
Growing skills. This pool of high skilled workers
supported by a rising domestic purchasing power.
is permanently increased by professionals trained in
universities (including the National Technological
Mercosur. Argentina is a full member of Mercosur,
University) and technical schools (in some cases managed
a common market also integrated by Brazil, Paraguay
by the own manufacturers, such as the case of the Henry
and Uruguay. As such, Argentina has preferential
Ford School). Additionally, the National Network of
access to a regional market of 238 million inhabitants,
Professional Training in automotive mechanics was created
with a combined GDP of US$1,607 billion (2007). As
in 2004 jointly by the government, the Mechanics and
part of Mercosur, Argentina has concluded Economic
Automotives Transport Union (SMATA) and the Argentine
Complementation Agreements with Bolivia, Chile,
Federation of Auto-repair Shops (FAATRA). This network
Colombia, Ecuador, Peru and Venezuela, enlarging the
is aimed at promoting professional education in the sector
potential market to 381 million consumers and a combined
at the national, provincial and municipal level.
GDP of US$2,346 billion.
INDUSTRY NETWORKING
C A S E S T U DY
ADEFA. Founded in 1961, ADEFA represents all the
MERCEDES BENZ
a leading automotive company increasing
export production in Argentina
automotive manufacturers in Argentina. The association’s
main purposes are to boost the local production of
vehicles, to foster investment in the automotive sector
Mercedes Benz, one of the world’s premier automobile
and to promote the industry entrepreneurship and
companies, has been in Argentina for the past 57 years.
competitiveness. Of particular importance among the
Since its arrival, the company has been a strong industrial
numerous activities carried out by ADEFA are those
presence in the country with a demonstrated export
intended to promote the specialization of the automotive
bias. Its industrial center “Juan Manuel Fangio,” located
sector and a complementary symmetric system within the
in La Matanza (Province of Buenos Aires) reflects the
Mercosur. Furthermore, ADEFA permanently seeks the
firm’s early commitment to investing and producing in
penetration of new markets for vehicles made in Argentina
the country, as it was the first center ever to be located
and throughout Mercosur.
outside the company’s country of origin, Germany.
AFAC. Auto parts manufacturers are represented in
In Argentina, Mercedes Benz is a full-liner company and
the Association of Argentine Auto Parts Manufacturers
commercializes trucks, buses, vans and premium vehicles.
(AFAC), an association founded in 1939 whose task is
The company’s industrial center currently operates 24
the promotion of auto parts and all those necessary
hours a day and has more than 2,700 employees. This
components for the manufacturing and repair of
high production rates prompted the addition of more
automobiles in the country. AFAC aims to improve and
than 100 new skilled employees in 2007 and 2008.
strengthen the development of the auto parts business,
promote the development of the Argentine automobile
Since 1996, Mercedes Benz Argentina produces and
industry as a whole and promote exports.
exports the Sprinter passenger van model to more than
58 countries. More than 85% of production is exported
to countries in Europe, Asia, the Middle East, Oceania and
the Western Hemisphere, making Sprinter the Argentine
vehicle with the highest number of global destinations.
This locally produced vehicle has the same characteristics
and quality standards than those produced at Mercedes
Benz’ German headquarters, a fact that accounts for the
outstanding level of local labor.
Mercedes Benz Argentina has just concluded investments
for more than €65 million in the creation of a new
assembly line and production platform in Argentina. The
passenger car built on this site is 100% destined to the
external market. The company is also working with a
number of local providers to develop national production
of auto parts for its vehicles and is investing more than
€12 million in this process. In addition, production of a
new chassis for urban buses (OF 1418) has just begun
and has been added to the production of the OH 1315,
already made in Argentina.
IV. Policy Initiatives
REGIONAL TRADE
Incentives
Special trade regime with Brazil. The automotive
Local integration. Additionally, other policy initiatives
sector enjoys significant government support, benefiting
have been put in place to promote the auto parts sector,
from a special trade regime with Brazil and various
including reimbursements to automobile manufacturers,
incentives for manufacturers. As part of Mercosur, both
trade negotiations conducted by the national government
Argentina and Brazil share a common external tariff
and a specific regime. A cash reimbursement fiscal benefit
(CET) of 35% for finished products (with an inferior
is in place for vehicles produced domestically and that
tariff in Argentina for trucks and buses) and of 14-18% for
have imported parts whose value do not exceed 30% of
non-locally produced parts. In 1994, the two countries
the wholesale price of the final good (Decree 774/05).
signed a bilateral trade agreement, providing for duty-free
Specifically, a company manufacturing vehicles in
trade both in automobiles and auto parts, subject to the
Argentina receives a cash reimbursement equivalent to 6%
requirements of national regimes. Currently, zero-rate
of the value of the locally produced parts being purchased.
tariffs for bilateral trade are in place, subject to (decreasing)
In addition, a Domestic Auto Parts Promotion Law was
balanced trade requirements and regional and national
enacted in June 2008. The initiative projects a production
content requirements. Bilateral trade with Brazil is tariff-
level of 500,000 engines and no less than 700,000
exempt within a “flex” mechanism, which determines the
motorcycles by 2011, via the support of investment and
level of Brazilian imports in relation to Argentine exports
setting of new tax benefits. This includes reimbursement
(tariffs apply if this level is exceeded). This mechanism is
of 8% over the total domestic auto parts acquired by
aimed at protecting the domestic industry as it gains global
manufacturers during the first year. The reimbursement
competitiveness. Currently, an asymmetric “flex” is in place,
levels will be progressively reduced to 7% for the second
favouring Argentine exports within Mercosur (Argentina
year and 6% for the third. In relation to local components
can export US$2.50 for every US$1.95 imported). This
used for engines and transmission gears, reimbursement
new system encourages investment plans by setting a
percentages are 10% for the first year and are then
predictable framework for the next five years and looks to
progressively reduced to 6% on the fifth year (total period
foster the share of domestic auto parts in bilateral trade .
covered by the initiative).
Trade with Mexico. In 2006, Argentina and Mexico
eliminated all bilateral trade barriers in automobile trade
and in June 2006 numerous tariffs were abolished in the
auto parts sector.
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V. Main Challenges
Industry players and government agencies face key
• Take full advantage from a demanding domestic
challenges to sustain growth and consolidate the sector’s
and regional market: the advanced level of
competitiveness. In themselves, these challenges present
development of the domestic and regional markets
attractive opportunities for the industry and Argentina.
presents an attractive opportunity for the sale of models
adapted to regional consumer demands.
• Improve the local industry’s insertion in the
global value chain: encourage more investment in
• Continue to strengthen the sector’s public-
training and R&D, in order to increase the industry’s
private partnership: a sustained increase of the
capacity to migrate towards higher value-added
industry’s competitiveness will require a coordinated
activities.
effort by public and private players, among other actions
promoting Argentina as an increasingly attractive option
• Pursue a balanced development of the sector’s
local value chain: the surge in automobile
for international manufacturers to locate production
facilities.
manufacturing should serve as a basis for a strong
increase in domestic auto parts production. A closer
integration between manufacturers and local auto
OUR CHALLENGES ARE YOUR OPPORTUNITIES.
parts suppliers has the potential to increase the sector’s
competitiveness and encourage technological advances.
SOURCES: The trends, data and figures included in this material were elaborated by ProsperAr on the basis of: National Institute
of Statistics and Census; CEP; ADEFA; AFAC; López, A. (coord.), “Complementación Productiva en la Industria Automotriz en
el Mercosur”, (2007); The International Organization of Motor Vehicle Manufacturers; Automotive Forecast, The Economist
Intelligence Unit, January 2008; and Auto Report 2006/2007, International Metalworker’s Federation.
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The information provided through this brochure does not constitute legal or professional advice whatsoever. ProsperAr (Agencia
Nacional de Desarrollo de Inversiones) reserves the right to revise, amend, alter or delete the information provided herein at any
time, but shall not be responsible for or liable in respect of any such revisions, amendments, alterations or deletions.
Photos: courtesy of Basso, Stock Exchange and Flickr under Creative Commons license.
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Argentina at a glance
Country profile
Official name
República Argentina
Capital city
Buenos Aires
Main cities
La Plata, Mar del Plata, Mendoza, Rosario, Cordoba
Surface area2,780,400 square kilometers
Population39,356,383 inhabitants
Population growth 1.0% per year
GDP per capita (PPP) US$ 13,307
Currency
Argentine Peso ($)
Adult literacy rate97.2%
Life expectancy at birth
75 years
Form of government
Federal Presidential Republic
Political division23 autonomous provinces
and the Autonomous City of Buenos Aires
Time zone
GMT - 03:00
Official language
Spanish
Main Economic Indicators
200320042005200620072008E
GDP growth rate (annual %)8.8%9.0%9.2%8.5%8.7%
GDP (PPP) (millions of US$)333,399373,041
419,568
GDP (millions of US$)
183,117212,897260,663307,004
129,631
153,185
Exports (millions of US$)34,43939,864
46,825
469,457
523,739
7.4%
54,20765,838
571,392
78,756
Imports (millions of US$)
18,82727,93034,946
41,133
53,35868,737
Balance of trade (millions of US$)
15,611
13,074
12,479
Trade surplus (% of GDP)
12.0%
11,934
11,879
7.8%6.5%6.1%
10,019
4.8%3.3%
Current account surplus (% of GDP)6.3%2.1%2.8%3.6%2.8%2.2%
Primary fiscal surplus (% of GDP)2.3%3.9%3.7%3.5%3.2%3.6%
Gross capital formation (% of GDP)
15.1%
19.2%21.5%23.4%24.3%
n.a.
Gross national savings (% of GDP)
19.6%20.6%23.7%26.4%26.6%
n.a.
Foreign direct investment (millions of US$)
1,652
n.a.
4,125
5,265
5,037
5,713
Exchange rate ($/US$)2.92.92.93.13.13.2
Foreign reserves (millions of US$)
14,119
Unemployment rate (% of EAP)
14.5%
19,64628,07732,037
12.1%
10.1%8.7%
Source: ProsperAr based on Argentinean National Institute of Statistics and Census, Central Bank’s Market Expectations Survey (REM) and International Monetary Fund.
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46,176
55,597
7.5%
7.0%
ProsperAr is Argentina’s National Investment Development Agency
Our mission is to encourage foreign and national investment for Argentina’s
competitiveness and sustainable development
ProsperAr’s five main objectives:
Provide services to investors
ProsperAr acts as a centralized contact point for both foreign and local investors in Argentina. We
provide potential investors with personalized professional services at all stages of the investment
process: from investment assessment and set up to post-investment (through our aftercare activities).
We supply key information on business sectors, legal framework, investment incentives and regional
profiles, necessary to establish and grow your business. We also facilitate contacts between potential
investors and prospective local partners and government agencies.
Attract and generate investment
ProsperAr works to promote, attract and expand both domestic and foreign investment in the country.
We identify investment and innovation opportunities in high growth sectors, and in turn, communicate
them to national and international investors. We also encourage existing firms to expand and develop
their businesses in the country. ProsperAr is implementing a set of programs to facilitate access to
credit and capital for investment and innovation.
Support the internationalization of local companies
ProsperAr promotes the growth and internationalization of Argentinean firms. Fostering local
innovation capabilities and overall competitiveness is key to our strategy. ProsperAr also assists
international companies to invest in and work with Argentinean peers in global joint ventures. In short,
we plan to financially support pioneers and domestic companies to achieve their global expansion goals.
Communicate Argentina’s advantages
ProsperAr communicates Argentina’s advantages and opportunities to both local and global investors.
We aim to create a differential image for the country, highlighting the reasons that make Argentina an
attractive, profitable and strategic investment location. We also work to build relationships that enable
international companies to take advantage of local, regional and global opportunities.
Boost the Investment Environment
ProsperAr works to strengthen Argentina’s investment environment. We interact with local and
overseas companies, as well as potential investors, identifying and removing possible obstacles to do
business in Argentina. Through active dialogue with the private sector, and in coordination with other
government departments, we advocate for the formulation of policies and programs to optimize the
investment and innovation environment.
What ProsperAr can do for you:
>> Provide timely and relevant information on business sectors and geographical
locations in Argentina
>> Help identify investment and innovation opportunities in strategic sectors
>> Troubleshoot red tape and obstacles; facilitate the whole investment process
>> Assist in building partnerships between foreign investors and local companies
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To learn more about how investing in
AUTOMOTIVE INDUSTRY in Argentina
can benefit you, please contact us:
www.prosperar.gov.ar
[email protected]
+54 11 4328 9510