Argentina Auto Parts and Components Market Size, Share, Trends and Forecast by Type, Demand Category, and Region, 2026-2034

Argentina Auto Parts and Components Market Overview:

The Argentina auto parts and components market size reached USD 2,717.50 Million in 2025. Looking forward, IMARC Group expects the market to reach USD 3,704.96 Million by 2034, exhibiting a growth rate (CAGR) of 3.50% during 2026-2034. The market is driven by government tariff reductions and tax reforms that enhance industry competitiveness and lower production costs for domestic manufacturers. Additionally, the country's strengthening position as an export-oriented manufacturing hub for regional markets, particularly for pickup trucks and automotive components, is supporting growth. Furthermore, the increasing adoption of electrified vehicles and technology modernization through substantial multinational investments is expanding the Argentina auto parts and components market share.

Argentina Auto Parts and Components Market Trends:

Government Tariff Reductions and Tax Reforms Driving Industry Competitiveness

Argentina's automotive components sector is experiencing significant support from comprehensive government policy reforms aimed at reducing operational costs and enhancing global competitiveness. These initiatives address critical challenges faced by manufacturers, including high import duties on essential production equipment and raw materials that previously constrained profitability and growth. The government has implemented strategic tariff reductions on vital manufacturing inputs, recognizing the sector's importance as a major contributor to industrial output and employment. By lowering duties on specialized tooling and equipment, policymakers are enabling component manufacturers to modernize their facilities, adopt advanced production technologies, and reduce per-unit costs. These reforms also include the continuation and formalization of export incentive programs that exempt incremental foreign sales from duties, encouraging manufacturers to expand their international market presence. The policy changes create a more favorable business environment that attracts both domestic and foreign investment in parts manufacturing. Additionally, complementary measures targeting the final vehicle market, such as eliminating tariffs on certain vehicle categories, indirectly benefit component suppliers by stimulating overall automotive sector demand. In April 2024, Argentina's Economy Minister Luis Caputo announced comprehensive tariff and tax reductions to enhance the competitiveness of the automotive sector. The reforms included reducing tariffs on metal molds used by the automotive industry from 35% to 12.6%, and plastic injection molds from 24% to 12.6%, while continuing the exemption from foreign sales duties for incremental exports under the formalized "Repostock" regime. These structural improvements position Argentine component manufacturers to compete more effectively in regional and global markets, driving Argentina auto parts and components market growth.

Adoption Of Electrified Vehicles and Technology Modernization

The Argentine automotive components market is undergoing a technological transformation driven by accelerating electrification trends and the integration of advanced manufacturing systems. Global automotive manufacturers operating in Argentina are implementing ambitious plans to introduce hybrid and electric vehicle production, creating new demand for specialized components including battery systems, electric motors, power electronics, and lightweight materials. This shift represents both a challenge and opportunity for traditional component suppliers, who must adapt their product portfolios and manufacturing capabilities to serve evolving technological requirements. Major investments are flowing into production facilities to install state-of-the-art equipment, implement Industry 4.0 principles including automation and digitalization, and enhance energy efficiency. These modernization efforts improve productivity, quality consistency, and environmental performance while reducing long-term operational costs. Component manufacturers are also investing in research and development to develop locally engineered solutions tailored to regional market needs and price points. The transition to electrified powertrains is complemented by broader technological upgrades across vehicle systems, including advanced driver assistance systems, connectivity features, and improved safety equipment, all of which require new electronic components and sensors. Automotive companies are forming strategic partnerships with local suppliers to increase domestic content in vehicles, transferring technology and expertise to build local engineering capabilities. Government support through tariff policies on electric vehicles creates additional market pull for electrified vehicle components. In April 2025, Volkswagen announced a USD580 million investment to produce a new generation of the Amarok pickup exclusively for the South American market at the Pacheco plant, with availability starting in 2027. The investment will incorporate state-of-the-art technology, improve energy efficiency, and optimize digital processes to ensure operational sustainability. This wave of technological modernization positions Argentina's component industry for long-term competitiveness in an evolving global automotive landscape.

Argentina Auto Parts and Components Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2026-2034. Our report has categorized the market based on type and demand category.

Type Insights:

• Drivelines and Powertrains
• Interiors and Exteriors
• Electronics
• Bodies and Chassis
• Tires
• Others

The report has provided a detailed breakup and analysis of the market based on the type. This includes drivelines and powertrains, interiors and exteriors, electronics, bodies and chassis, tires, and others.

Demand Category Insights:

• OEM
• Replacement

A detailed breakup and analysis of the market based on the demand category have also been provided in the report. This includes OEM and replacement.

Regional Insights:

• Buenos Aires Region
• Litoral Region
• Northern Region
• Cordoba Region
• Cuyo Region
• Patagonia Region

The report has also provided a comprehensive analysis of all the major regional markets, which include Buenos Aires Region, Litoral Region, Northern Region, Cordoba Region, Cuyo Region, and Patagonia Region.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

Argentina Auto Parts and Components Market News:

• May 2025: Stellantis began production of the Fiat Titano mid-size pickup truck at its Ferreyra plant in Córdoba, marking the company's first pickup manufactured in Argentina. This development is part of a USD 385 million investment announced in September 2024 to transform the Córdoba industrial center into a regional hub for pickup production. The investment includes the creation of 1,800 new jobs (50% women) and the introduction of a new 2.2L Multijet turbodiesel engine producing 200 HP and 450 Nm that will be manufactured starting in 2027. The Fiat Titano will be exported across South America with high local content integration.
• September 2024: Renault announced a USD 350 million investment and the creation of 850 new jobs at its Santa Isabel facility to assemble a new half-ton pickup truck, with 65-70% of production designated for export markets. The new model will be manufactured using the Renault Group Modular Platform (RGMP), the same flexible global platform used in the Kardian. This represents Renault's record investment in Argentina and demonstrates the company's commitment to strengthening domestic production and sustainable mobility in the country.

Argentina Auto Parts and Components Market Report Coverage:

Key Questions Answered in This Report:

• How has the Argentina auto parts and components market performed so far and how will it perform in the coming years?
• What is the breakup of the Argentina auto parts and components market on the basis of type?
• What is the breakup of the Argentina auto parts and components market on the basis of demand category?
• What is the breakup of the Argentina auto parts and components market on the basis of region?
• What are the various stages in the value chain of the Argentina auto parts and components market?
• What are the key driving factors and challenges in the Argentina auto parts and components market?
• What is the structure of the Argentina auto parts and components market and who are the key players?
• What is the degree of competition in the Argentina auto parts and components market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Argentina auto parts and components market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Argentina auto parts and components market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Argentina auto parts and components industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.