Argentina's automobile industry must improve its competitiveness in the wake of Brazil's currency devaluation and look for new markets in Europe and the Pacific, the president of Fiat Argentina Cristiano Rattazzi said recently, according to a report in the Economic Times.

Argentina and Brazil have made policy agreements over bilateral car trade in the last few years but the devaluation of the real has nevertheless hurt demand for Argentine products in Brazil and made Brazilian exports cheaper in other markets, according to the report.

Argentine car production dropped 8.3 percent in September compared with the same month a year ago due to a 27.3 percent plunge in exports, the ADEFA automobile association said.nBrazilian demand for Argentine cars is down more than 30 percent in 2015 compared with the previous year, ADEFA said, which was cited by the Economic Times report.

Rattazzi said Argentina's car industry was also struggling with high inflation. Economists estimate that consumer prices are rising about 25 percent annually, according to the Economic Times report.

Argentina holds a presidential election on Oct 25, after eight years of interventionist policies by incumbent Cristina Fernandez that have sparked rampant inflation, according to the report.