Nicaragua vehicles market in 2020 began the year negatively but plummeted even further in Q2 and has not yet recovered effectively. Indeed, 279 units have been sold in September (-71.4%), leading Year to Date sales at 2.344 units (-73.6%). The leader Toyota still holds 23.8% of the market despite losing in double-digits as well.
Economic Environment
The economy contracted 7.9% in Q2 according to recent data, despite the lack of a domestic lockdown. Exports plunged on lockdowns abroad and the collapse in international travel, while private consumption and fixed investment also fell sharply amid uncertainty generated by the pandemic.
However, government consumption growth was solid. Turning to the third quarter, momentum appeared to recover somewhat, with the annual decline in economic activity much softer in July and August amid stronger showings from the manufacturing and mining subsectors.
Moreover, remittances surged in the quarter, likely propping up private consumption. That said, the hotels and restaurants subsector remained extremely downbeat, likely as foreign visitors stayed away.
Market Trend Year to Date
The Nicaraguan car market underperformed drastically in 2020 and was unable to recover at all after plummeting even further in Q2 mirroring the contraction of the GDP. Indeed, 279 units have been sold in September (-71.4%), leading to 2.344 units sold Year to Date, a whopping 73.6% decrease in sales compared to 2019.
Brand-wise the leader remained Toyota, holding 23.8% market share, followed by Nissan with 15.2% share and by Hyundai with 8% share.
Medium-Term Market Trend
Nicaragua vehicles market has lost steam in 2017, following the all-time record established in the previous year, when sales hit 19.091 units. Indeed, in 2017 total new vehicle sales have been 9.500, while in 2018 the market registered a flat performance.
In 2019, sales are marginally negative. Indeed, as reported by the local association of car manufacturers, Year to Date November sales have been 10.491, projecting the full year to 11.448 (-1.2%).
In Q1 2020 the market started with a very negative trend with a loss of 62.1% and 1.153, but the situation got even worse in Q2, leading to 1.511 units being sold in the First Half (-74.6%).
Tables with sales figures
In the tables below we report sales for the Top 10 Brands
