The Ecuadorian market, despite the crisis, offers around 488 models. Prices fell, on average, between 2% and 4.5% over the past year.
One of the sectors that recovered the fastest in 2021, in relation to the deep fall of 2020, was the automotive.
That recovery was possible, to a large extent, thanks to the rapid reaction of companies linked to the sector, who saw in the pandemic an opportunity to exploit digital channels, reach larger audiences and regain lost ground.
Dynamization of financing
According to Genaro Baldeón, executive president of the Association of Automotive Companies of Ecuador (Aeade), 119,200 units were sold, which represented 40% more with respect to the first year of the pandemic.
“After a severe contraction during 2020, throughout 2021 the automotive market it recovered considerably, thanks to the process of economic reactivation, driven by the dynamization of financing, new investments for productive activity and higher levels of consumption ”, he assured.
However, total sales closed almost 10% below what was recorded in 2019.
Limitation by the world market
Baldeón pointed out that local recovery has been limited by logistical problems and chip production semiconductors worldwide.
However, representatives of automotive brands in Ecuador, for the most part, handled these problems adequately. Until the middle of the year, a waiting list of up to three months was registered, when the normal was one month, but in the second half of 2021, it improved and sales were close to what was had before the health crisis.
The Aeade assured that, although the decrease in the inventory and world catalog of cars is real, it has been possible to maintain lower scarcity levels with respect to other economies, due to the diversification of the offer.
Which segments have recovered the strongest?
The vehicle segments that had an early and faster recovery were those linked to the activity productive, such as trucks, vans and motorcycles. Its recovery exceeded -even- the sales of the year 2019: trucks 26% better than 2019, trucks and motorcycles 12% more than 2019.
This behavior goes hand in hand with the increase in household consumption and economic growth which, according to the central bank of Ecuador (ECB) reached 4% until December 2021.
On the other hand, global shortage problems were minimized thanks to the constant increase in supply in the Ecuadorian market for the past six years.
In 2016 there were 66 brands in the country, in 2021, the number reached 137. In terms of models, the spectrum went from 327 to 488 in 2021.
This has allowed vehicle prices to decline steadily since 2017, with the added boost of the trade agreement with the European Union. (JS)
What type of vehicle do Ecuadorians prefer?
Consumers have changed their preferences throughout 2020 and 2021 and this is evidenced by observing that SUVs have been the best-selling vehicles in Ecuador since last year. This is largely due to the fact that those vehicles had a more accessible offer, between $ 20,000 and $ 30,000. Additionally, there was an average $ 1,600 reduction in price over the past year.
According to Antonio Romero, a sales executive in the automotive sector, it does not mean that consumers have only opted for cheaper options, but that they are also looking for more functionality when purchasing these types of goods.
Another segment where there was an important reduction in costs was that of trucks, which is the one with the highest demand in commercial vehicles. On average, the price dropped more than $ 1,173, bringing the total value from $ 53,324 to $ 52,151.
Another factor that affects both supply and prices is the quality of the subsidized fuel. But nevertheless, It is expected that this situation will begin to change in 2022 through the signing of more contracts for the private sector to import fuels from outside the state monopoly of Petroecuador.
La meta para 2022 es que los niveles de ventas alcancen las 130 mil unidades al año, lo que se tenía antes de la pandemia.
The used car sector moved $ 16 million in 2021
The sale of pre-owned or used vehicles also participated in the dynamism of the entire automotive section. In 2021, a growth of 25.53% was experienced, which represents an average of 118 units sold per month and an economic movement of around $ 16 million.
In 2020, amid the initial onslaught of the pandemic, sales did not exceed 94 units per month.
According to information from OXL Autos, just over 1.31% of visitors to its website ended up buying a vehicle.
The shortage of electronic chips, which affected the entire supply chain in various industriesIt also affected the pre-owned and used car market; but it has not reached a level of chronic shortage, according to Felipe Pérez, a salesman in the sector.
Although the growth of the Ecuadorian used car market is important, it did not reach the dimensions of what happened in other countries. Thus, for example, in Colombia, 66% more were sold with a total of more than 1 million units sold.
