Argentina Automotive Engine Market Overview, 2029

Argentina Automotive Engine Market Overview, 2029

Internal combustion engines (ICEs) dominate the Argentine automotive engine market, notably in-line engines, which are popular due to their low cost and ease of production. However, recent trends show a movement in consumer preferences toward engines with higher fuel efficiency. With rising gasoline prices, there is an increased demand for engines with features like start-stop technology and smaller, turbocharged designs. These developments not only meet consumer requests for increased mileage, but also reflect a societal predisposition toward price awareness. Argentinians are recognized for their frugal mentality, frequently favouring price and dependability in their automobile purchases. As a result, the need for smaller, more fuel-efficient engines mirrors a broader cultural trend toward cost-consciousness. Moreover, despite the dominance of ICEs, there is a growing interest in electric cars (EVs) in the Argentina market. While still in its early phases, the EV industry shows signs of significant growth, fueled by government incentives and growing environmental concerns. However, widespread adoption is hampered by infrastructure constraints, such as a lack of decent roads and an insufficient EV charging network. Despite these challenges, the possibility for EVs to gain popularity in Argentina highlights a shift toward more environmentally friendly transportation solutions. Domestic production is quite important in this context. Argentina has a thriving automotive industry, with major manufacturers making automobiles using native engines. This emphasis on home production not only benefits the economy, but it also helps businesses to meet individual consumer tastes and market demands. Automakers can better meet consumer needs, such as price sensitivity and fuel efficiency, by creating automobiles with engines designed specifically for the Argentine market.

According to the research report “Argentina Automotive Engine Market Overview, 2029,"" published by Bonafide Research, the Argentina Automotive Engine Market is forecasted to value at more than USD 1100 Million by 2029. There are several opportunities and supporting events promoting the development of greener automobile technology in Argentina. Government incentives, such as tax cuts and subsidies, encourage the development and marketing of electric cars (EVs). This funding not only encourages manufacturers to invest in environmentally friendly technologies, but it also makes electric vehicles more inexpensive and accessible to consumers. Furthermore, the expanding emphasis on renewables has synergies with the automobile industry, as increased investment in renewable energy sources can boost the appeal of EVs by ensuring cleaner energy generation and lower carbon emissions. Trade agreements with neighbouring nations provide further opportunities for the automobile industry to grow. These agreements facilitate engine exports, opening up new markets and increasing Argentine manufacturers' global competitiveness. The automotive sector may profit on international engine demand by utilising trade agreements, thereby boosting industry growth and innovation. Emission rules are gradually tightening, pushing manufacturers toward greener technologies. This legislative impetus indicates a shift toward more environmentally friendly automobiles, promoting the use of electric and hybrid technology to fulfil rigorous emissions standards. However, these restrictions present problems for producers, mandating investment in R&D to meet growing standards. The government's import limitations have a significant impact on the car industry. These limits are intended to protect domestic manufacture but may have an impact on the supply of specific engines. This protectionist approach seeks to strengthen local industrial capabilities while reducing reliance on foreign imports. While it protects domestic businesses, it may limit customer choice and innovation by restricting access to a wide range of engine options.

The engine market encompasses a variety of product types catering to diverse needs and preferences. Inline engines, characterised by their cylinders arranged in a single row along the crankshaft, offer simplicity, compactness, and cost-effectiveness, making them prevalent in smaller vehicles with 3, 4, or 6 cylinders. In contrast, V-type engines feature cylinders arranged in two banks forming a ""V"" shape, offering compactness and good power output, suitable for a wider range of vehicles, including configurations like V6, V8, and V12. Less common are W engines, with three banks of cylinders arranged in a ""W"" shape, providing a high cylinder count in a compact space but are complex and costly to manufacture, limiting their usage. Fuel type plays a pivotal role in engine performance and application. Gasoline, derived from petroleum, is a common fuel for spark-ignition engines found in cars, motorcycles, and lawnmowers, offering volatility and efficiency. On the other hand, diesel, also from petroleum, powers compression-ignition engines in trucks, buses, and ships, boasting higher energy density and efficiency. Alternative fuels such as biodiesel, sourced from renewable materials like vegetable oils, and electricity for electric vehicles, offer sustainable options, diversifying the fuel landscape. These engines serve various vehicle types, including passenger cars, motorcycles, commercial vehicles like trucks and buses, and special-purpose vehicles such as construction and agricultural machinery. Each engine type and fuel choice align with specific vehicle applications, driving innovation and adaptation to meet evolving consumer demands for performance, efficiency, and sustainability in the automotive industry.

In terms of pricing and segmentation, the Argentine automobile market serves a wide spectrum of consumers with different budgets and preferences. Smaller, fuel-efficient engines designed for basic mobility are among the most affordable possibilities. Mid-range engines meet the needs of cars and SUVs, establishing a balance between performance and price. Luxury automobiles benefit from high-performance engines, which provide exceptional power and refinement to discerning customers. While pricing data may be scarce, this segmentation represents the market's diversified products, meeting the requirements and interests of a wide range of consumers. Fiat's declaration in 2021 of plans to engage in electric car production in Argentina was a significant shift in the automobile industry, reflecting a growing global trend toward sustainability and electrification. This initiative demonstrated Argentine automakers' commitment to embracing renewable energy sources and lowering carbon emissions. As the world transitions to electric mobility, this investment positions Argentina to capitalise on new market opportunities. In response to rising demand for electric vehicles (EVs), the government will implement tax reductions for EV sales in 2022. These incentives were designed to encourage people to use environmentally friendly transportation options while also promoting the expansion of the country's EV industry. By enacting such rules, the government displayed its commitment to promoting a sustainable automotive industry and lowering the country's carbon impact.

Vehicle sales rebounded in 2023, showing that the automobile market had recovered from the COVID-19-induced depression. This increase in sales indicated restored consumer confidence and a rebound of economic activity in the sector. Despite the obstacles provided by the pandemic, the automobile industry displayed endurance and adaptation, laying the groundwork for future growth and development. In terms of sales channels, dealerships remained the dominant way to buy new vehicles with factory-installed engines. These businesses played an important role in easing customer transactions and offering key services like test drives and financing. Furthermore, a network of aftermarket parts outlets met car owners' repair and replacement needs, preserving the longevity and operation of their vehicles. When comparing Argentina to other nations in the region, Brazil emerged as a larger and more developed automobile market with a broader selection of engine options, including a greater presence of EVs. Chile, on the other hand, showed similar trends toward increased fuel efficiency and EV demand, but with a lesser market size. Despite these contrasts, Argentina's strategic investments in electric car manufacture have established it as a major participant in the regional automotive sector. While Argentina has a plentiful supply of raw materials required for traditional engine construction, such as metals and lubricants, resources for EV batteries, notably lithium, may need to be imported. This reliance on imported resources highlighted the significance of broadening the country's resource base and creating domestic skills to support the rising electric vehicle industry.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Automotive Engine market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Product Type
• In-line Engine
• V-type Engine
• W Engine

By Fuel Type
• Gasoline
• Diesel
• Other Fuel

By Vehicle Type
• Passengers Car
• Motorcycles
• Commercial Vehicles (Trucks, Buses, Etc)
• Special Purpose Vehicles (Construction machinery, agricultural machinery, etc)

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Automotive Engine industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.