The sale of new vehicles in Argentina fell 18.2 percent by comparison with the previous June with further steep plunges expected in the second half of the year, the Acara trade organisation reported.
The total in the first half of the year reaches 500,500 vehicles, 10.4 percent more than the same period last year, according to Acara.
"Even if the 64,140 vehicles licensed in June rounded out a record first half, the sector sees sharp plunges ahead for the second half of the year,” the Acara communiqué indicated.
With regard to May, Acara also reported a fall of 17.2 percent in the circulation of new cars.
The auto industry had literally been one of the motors of economic growth in 2017 but now Argentina faces the threat of a recession with a devaluation of almost 35 percent, interest rates of 40 percent and inflation of 11.2 percent in the first five months of the year.
"The figures confront us with the paradox of completing the best first half in our history, even ahead of 2013, but in a falling market,” said Acara president Dante Álvarez, attributing the negative perspective to "the impact of devaluation with a steep increase in the price of vehicules, especially those imported (which are 73 percent of monthly licensing) and the sharp fall in bank financing with the increased interest rates.”