Paraguay car market in 2012 runs towards a new record. Kia on top.

Paraguay is a 406k sq. km country with over 6.5 million people, one of the poorest in South America, with a large percentage of the population, especially in rural areas, derives its living from agricultural activity, often on a subsistence basis.

In recent years, the economy grew rapidly between 2003 and 2008 as growing world demand for commodities combined with high prices and favorable weather to support Paraguay’s commodity-based export expansion. Paraguay is the sixth largest soy producer in the world. Drought hit in 2008, reducing agricultural exports and slowing the economy even before the onset of the global recession. The economy fell 3.8% in 2009, as lower world demand and commodity prices caused exports to contract. The government reacted by introducing fiscal and monetary stimulus packages. Growth resumed at a 15% level in 2010, the highest in South America, but slowed to 6.4% in 2011 as the stimulus subsided. Political uncertainty, corruption, limited progress on structural reform, and deficient infrastructure are the main obstacles to growth. The pro capita income was US $5.500 in the 2011 with over 35% of population below the poverty level. The public debt was 13.7% of GDP (2011) and the inflation above 8%.

During first half 2012, the car market in Paraguay posted 15.069 sales, up 8% from last year. Two Koreans are leading with Kia best in class, as in no other market in the world, followed by Hyundai. Toyota posted a great Q2 aiming to be second.

The car market in Paraguay is characterized by a traditionally high used vehicles importation, as many other South American markets, and only in the last decade the new car market started to growth. In the period 2003- 2008 new car market was pushed up by the favorable economic environment, achieving a peak of 20.266 units in the 2008. As the global economic crisis hit the country, car market dropped in the 2009 at 12.160 units, to immediately recover in the 2010, at 20.125 and to further grow at 29.392 sales last year.

The car market in Paraguay is characterized by a traditionally high used vehicles importation, as many other South American markets, and only in the last decade the new car market started to growth. In the period 2003- 2008 new car market was pushed up by the favorable economic environment, achieving a peak of 20.266 units in the 2008. As the global economic crisis hit the country, car market dropped in the 2009 at 12.160 units, to immediately recover in the 2010, at 20.125 and to further grow at 29.392 sales last year.

The 2012 was projected stable or slightly down, considering the economic forecast were projecting the GDP at slow growth. However, in the first half of the year the market posted an 8% increase and run towards a new all-time record, the third in a row.

The competitive scenario is quite fluid, with 5 Companies fighting for the leadership and many Chinese brands just arrived with aggressive plans to conquest share.

Kia was the leader with 2.631 sales in the first half and a share of 17.5%, up 3.0 points from 2011, obtained thanks to a second quarter share at 22.9%. Last year Kia was the market leader, while in first quarter it has been outpaced by Hyundai.

Hyundai was the 2nd, with 2.054 sales and 13.6% of share. In Q2 share was at 14.9%, up 2.8 from Q1 and 4.4 points from last year.

Toyota was 3rd with 2.045 sales, only 9 units below Hyundai, and a share of 13.6%, up 4.1 points from last year. In Q2 share at 19.8% was recovering after a slow start of the year. Toyota held the best-selling model, the Hilux.

Nissan was 4th, with 1.394 sales and 9.3% of share, up 1.5 points from last year. After a strong start of the year, in the second quarter its share declined at 8.0%, down 2.8 from the previous.

Chevrolet was 5th, losing 4 spots from last year, with 1.123 sales and a share of 7.5%, down 6.0 points from last year.

Volkswagen in 6th was the best European, with 939 units and a share of 6.2%, down 2.9 points from last year. After a strong Q1 with share at 9.1%, in the second the share declined at 3.9%.

In the table below, the best 20 brands, ranked for year-to-date position:

Rank

Brand

2011

Q1

Q2

I Half

 

2011

Q1

Q2

I Half

1

Kia

4.271

724

1.907

2.631

 

14,5%

10,8%

22,9%

17,5%

2

Hyundai

3.080

814

1.240

2.054

 

10,5%

12,1%

14,9%

13,6%

3

Toyota

2.780

396

1.649

2.045

 

9,5%

5,9%

19,8%

13,6%

4

Nissan

2.278

726

668

1.394

 

7,8%

10,8%

8,0%

9,3%

5

Chevrolet

3.962

551

572

1.123

 

13,5%

8,2%

6,9%

7,5%

6

Volkswagen

2.325

615

324

939

 

7,9%

9,1%

3,9%

6,2%

7

Fiat

1.173

416

255

671

 

4,0%

6,2%

3,1%

4,5%

8

Suzuki

858

166

149

315

 

2,9%

2,5%

1,8%

2,1%

9

Mercedes

579

154

146

300

 

2,0%

2,3%

1,7%

2,0%

10

Isuzu

1.088

96

168

264

 

3,7%

1,4%

2,0%

1,8%

11

Renault

744

33

187

220

 

2,5%

0,5%

2,2%

1,5%

12

Jeep

250

116

101

217

 

0,9%

1,7%

1,2%

1,4%

13

Mitsubishi

447

146

44

190

 

1,5%

2,2%

0,5%

1,3%

14

SsangYong

347

105

74

179

 

1,2%

1,6%

0,9%

1,2%

15

Mahindra

350

95

72

167

 

1,2%

1,4%

0,9%

1,1%

16

BMW

376

65

87

152

 

1,3%

1,0%

1,0%

1,0%

17

Ford

550

68

78

146

 

1,9%

1,0%

0,9%

1,0%

18

Audi

203

71

63

134

 

0,7%

1,1%

0,8%

0,9%

19

Great Wall

423

29

101

130

 

1,4%

0,4%

1,2%

0,9%

20

BYD

253

115

0

115

 

0,9%

1,7%

0,0%

0,8%

Looking at the best-selling model, we got only few data, regarding the top of the list.

The best-selling model in the first half 2012 was the Toyota Hilux, with 1.530 units and a share of 10.2%, up 3.7 points of share from full year 2011. Nissan Frontier was the second with 921 sales and 6.1%, up 1 spot from last year.

Third was the Kia Rio, with 778 units and 5.2% of share, flat on last year, followed by the Hyundai Tucson with 606 units and the Hyundai Accent with 517 units.

In the table below, the top 10 models, ranked for year-to-date position:

Rank

Model

2011

I Half

 

2011

I Half

1

Toyota Hilux

1.913

1.530

 

6,5%

10,2%

2

Nissan Frontier

1.473

921

 

5,0%

6,1%

3

Kia Rio

1.525

778

 

5,2%

5,2%

4

Hyundai Tucson

882

606

 

3,0%

4,0%

5

Hyundai Accent

n.a.

517

 

n.a.

3,4%

6

VW Gol

1.140

440

 

3,9%

2,9%

7

Hyundai Santa Fe

765

316

 

2,6%

2,1%

8

Kia Sportage

723

301

 

2,5%

2,0%

9

Kia Sorento

n.a.

298

 

n.a

2,0%

10

Chevrolet S10

1.100

282

 

3,7%

1,9%

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