(Adds details on car manufacturing)
BUENOS AIRES, Nov 30 (Reuters) - A sharp slowdown in car manufacturing in Argentina in October led to a 2.6 percent year-on-year drop in industrial output, official data showed on Monday, highlighting the challenge President-elect Mauricio Macri faces rebooting the economy.
Argentine car makers registered a 25.6 percent slump in output in October compared with the same month a year earlier, due in part to an over-valued peso currency at home and a deepening recession in main trade partner Brazil. Vehicle exports fell by nearly 49 percent during the same period.
October's monthly industrial output data came in much weaker than the median forecast in a Reuters poll for a dip of 0.2 percent.
On a month-on-month basis, industrial output fell 1.1 percent in October in seasonally adjusted terms, the ministry said.
Macri takes office on Dec. 10. Macri promises to dismantle a web of trade and currency controls imposed by outgoing President Cristina Fernandez to protect local industry and defend dollar reserves, but which he says have strangled investment and stunted growth. (Reporting by Buenos Aires newsroom; Editing by Richard Lough and Diane Craft)