Motorcycle Production: Limited Gains From Domestic Demand Reliance

Robust local demand and government regulations are pushing motorcycle production in Argentina to record levels of nearly 450,000 units in 2011, up 18.4% compared with 2010 (according to estimates revealed by Debora Giorgi, the Argentine Industry Minister). The growth bodes well for the government's policy of import substitution and its deficit reduction plan, but we are concerned that the unstable policy environment in the country could dampen growth in the segment.

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