Guatemala vehicles market dropped down 3.5% in 2018 for the third year in a row. The new vehicles’ market is experiencing a severe erosion due to the importation of used cars. Ford and Hyundai shine within the Top10, while the leadership is still held Toyota.
Economic Environment
Guatemala economic growth is expected to have grown at a broadly steady pace in the fourth quarter of last year. The index of economic activity averaged only slightly below the reading from the third quarter in October and November. Meanwhile, data suggests that domestic demand should have remained robust in the fourth quarter with inflationary pressures moderating and remittances continuing to grow at a solid, albeit slightly softer, pace compared to the third quarter.
On the other hand, the external sector likely remained the weak spot in the final quarter of last year. Exports contracted in November over the same month a year prior while import growth accelerated, and the trade deficit consequently widened. This follows a third quarter during which the merchandise trade deficit grew larger and the current account surplus narrowed.
Market Trend
Guatemala’s vehicles market hit the best level ever in the 2015 with a record of 30.359 sales, before to start declining.
According to data released by the local association of car manufacturers (AIDVA), total new vehicles sold in 2017 have been 25.620, down for the second year in a row, losing 4.8% from the previous year.
The reasons behind this decline is caused by the unfair competition of used vehicles imported and sold in Guatemala’s market without regulations or restrictions on the age, condition or condition of the vehicles. More over, in Guatemala the approval of a gas emission regulation is urgently needed, which could help to prevent the entry of vehicles, which have been banned from travelling abroad due to the high levels of pollution.
Indeed, even the 2018 closed up negatively with sales down 3.5% – according to the forecast – with 28.920 units.
The Superintendency of Tax Administration (SAT) is promoting, although there is nothing concrete, new controls to prevent the entry of used vehicles with anomalies, structural defect of problems.
The market leader was Toyota with 10.007 sales (-3.4%), followed by Hyundai – up 1 spot from the previous year – with 3.583 (+0.5%) and Kia with 3.514 (-9.1%). Nissan and Ford registered outstanding performances within the Top10.
Tables with sales figures
In the tables below we report sales for Top Brands
