In 2026, the local tire industry in Argentina, a large South American country, is in unprecedented trouble. In sharp contrast, tires imported from China are showing a substantial growth trend.
Argentina’s domestic tire industry continues to suspend and reduce production. Taking Pirelli’s Melo factory in Buenos Aires Province, Argentina as an example, its daily output plummeted from 18,000 tires/day to less than 4,000 tires/day, a decrease of approximately 78%.
Moreover, after suspending production for 12 days from May 25 to June 5 this year, the factory once again announced that it would suspend operations for a week from June 15 to 21 to cope with the decline in sales.
Although employees can receive full wages during the suspension of production, Pirelli will cancel weekend operations at the plant starting from July 1. This move directly affects the salary income of more than 150 shift workers. The Argentine Tire Workers Federation has pointed out that this move is suspected of being illegal and has submitted a complaint to the Labor Secretariat.
The suspension of production at the Pirelli factory is mainly due to the production reduction of the vehicle manufacturer Stellantis, which has affected the tire supporting market. Pirelli mainly supplies tires for the factory’s Peugeot 208 and 2008 models.
This year, new car registrations in Argentina have shrunk by about 14%.
In addition, due to competition from electric vehicles from China, the export volume of Tlantis’s main models Peugeot 208 and 2008 sold to Brazil plummeted by 38% and 44% respectively; therefore, it adjusted the production capacity of its Argentine factory and started to reduce work and reduce employees.
In addition, in February this year, FATE, another local tire manufacturer in Argentina with a history of more than 80 years, closed down and laid off more than 900 people, triggering protests.
In early March, the protests escalated into a 24-hour general strike, involving factories such as Pirelli and Bridgestone. Tire production in Argentina almost came to a standstill, and the conflict remains unresolved.
On May 7, carbon black manufacturer Cabot announced the official closure of its Argentine factory.
The plant has been in operation since 1962 and is the only large-scale carbon black plant in Argentina, with an annual production capacity of approximately 85,000 tons.
The industry believes that the sudden drop in demand for carbon black caused by the shutdown and production reduction of factories such as FATE is the direct reason for their closure, which further forces tire factories such as Pirelli and Bridgestone to adjust production.
At the same time, according to media reports, Argentina’s imported tires have accounted for about 75% of its domestic market.
Among them, in 2024, the amount of imported tires from China will be approximately US$150 million.
According to relevant data, in 2025, Argentina will import tires from China. In addition to OTR off-road tires, the import quantity and amount of PCR passenger tires and TBR truck and bus tires will increase significantly compared with 2024.
In the first four months of 2026, the quantity and value of the three types of tires imported from China continued to show varying degrees of growth.
Sluggish sales and production cuts by OEMs after exports were blocked have led to production cuts, shutdowns, and labor conflicts at supporting tire factories, which in turn have affected upstream raw material suppliers to shut down factories. Argentina’s entire industrial chain is “shaky” under the double attack of external import impacts and sluggish domestic consumption, and is far from bottoming out.
The growing share of Chinese tires in the Argentine market has also brought new opportunities to Chinese tire companies.
