While the higher purchase cost of a turbodiesel inherent to the increasingly sophisticated aftertreatment becomes troublesome for a country with a severely troubled economy as Argentina is at the moment, a strong market for natural gas conversions is more favorable to the EC5 and would also be to the basic naturally-aspirated EB2 due to the usage of port-injection, instead of the direct injection which is fitted to the turbocharged variants of the smaller engine. And since the 1.2L EB2 is slotted right above a more favorable displacement class up to 1.0L for taxation purposes in Brazil, just like the 1.6L EC5 does, it could be at a first glance rendered less competitive against the direct-injection turbocharged flexfuel 1.0L engine offerings from Chevrolet, Volkswagen and Hyundai and unlikely to set a foothold as the higher manufacturing cost of a downsized engine compared to a more traditional counterpart is not so easily amortized through a tax break, even though the Mercosur agreement gives Argentinian-made cars a different tax break in Brazil. It's also worth noticing similar models from other manufacturers which are available in Brazil in 1.0L naturally-aspirated or turbocharged and larger-displacement naturally-aspirated versions only go to Argentina with the biggest engine for the very same reason, as such more favorable taxation scheme is absent there.
While a naturally-aspirated trim of the EB2 could be more valued by Argentinian customers as long as the purchase cost remained lower and a manual transmission would be retained, and some turbocharged variants would be more appreciated in Brazil due to the technology and "sportiness" appeal with a good marketing perspective for the availability of both manual and automatic transmission options, retaining the EC5 and automatic-only becomes an objectionable one-size-fits-all approach. The total absence of turbodiesel options, which could at a first moment sound quite predictable as it's not allowed for cars in Brazil and nowadays seems too expensive for a small car in Argentina, can also be counted as another mistake somehow. Overlooking all the complexity of South American car markets as a whole, ignoring specific aspects of each country in the region and how to better address such conditions, often leads to a poor decision-making which may have a troublesome reflex on the actual marketing perspectives for an otherwise good product, and right now it seems to be what happens to the 2nd-generation Peugeot 208 even though it's too soon to be sure about it failing or receiving a better-adjusted selection of engines.