Vehicle sales recovered in February with 11,151 new unitsbetween imported and assembled cars, after the decline recorded at the beginning of the year.

In January and February 2023, car sales totaled 21,461 units, which is 16% more than the sales recorded in the same months of 2022 (18,474 vehicles).according to information from the Chamber of the Ecuadorian Automobile Industry (Cinae).

The top-performing brands in the past month come from Korea, the United States, Japan and China.

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Looking at the segments, it can be seen that buyers prefer light SUVswhich are sport utility vehicles, which differ from sedans in that they are taller and more robust.

They keep a list of the most wanted, because its share in global sales is 43%. In January and February 2023, 9,404 SUVs were sold, compared to 5,788 cars and 3,787 trucks.

In the offer of SUVs, the most desirable car prices for drivers between $18,001 and $20,000.

There are several reasons to understand why people have become more inclined towards sports cars. One of them is that, because of his design and capacity, they are considered more resistant to possible damage or settlement caused by potholes on streets or roads in poor condition, commented David Molina, CEO of Cinae.

The second factor responds to an internal cultural issue in the country. Along with fuel subsidies, citizens have historically demanded bigger cars, Molina pointed out. In other countries, this does not happen, because these vehicles consume more fuel, and since there are no subsidies, the price of hydrocarbons is more expensive.

In addition, the manager explained that, according to increases the presence of hybrid cars in the countryMore and more SUVs of this type are being sold because they represent savings in fuel costs.

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Although sports cars are mostly bought, van merchandising had a higher percentage of annual growth. The figures show that between the first two months of 2023 and the same period in 2022, truck sales increased by 22%, in the case of SUVs it was 17% and cars by 12%.

What is happening is that trucks have significant penetration among drivers, mainly because they consume subsidized diesel and this affects the user’s economydescribed Molina.

Regarding performance of local industry, A Cinaeo spokesperson expressed regret that the market share of assembled cars is still low.

Of the 21,461 units sold in the first months of the year, only 14% correspond to assemblies (3,117 vehicles). This result is positive, however, as it represents an increase compared to the 2,175 assemblies that were shipped in January and February 2022.

The improvement is the result of the fact that at the international level freight rates for goods stabilized, after the global container crisis. The decrease in transportation costs has affected assembly costs, which Ecuador’s industry has taken advantage of to increase production volumes, Molina said.

Eight years ago, the industry ceased to have a 50% share of the national market. In 2015, it managed to capture 53%, but since 2016 it has been declining due to the fact that CKD products have become more expensive due to taxes, duties and other things. Currently, imported vehicles dominate with 85.5%.

In the context of political conflicts that threaten the continuity of Guillermo Lasso as President of the Republic, and with the possibility of a new strike, the director of Cinaea noted that he is still It remains to be seen whether the situation has affected the interest in buying a vehicle by the user.

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What happens is that the political scenario has triggered country risk, making productive loans more expensive which companies can access. According to the Central Bank of Ecuador, on March 9, the indicator was 1,585 points.

Molina explained that this is harmful because limits investments, since financial institutions contracted productive financing, favoring consumer loans. In other words, less money is lent to businesses, but more resources are allocated to the public to borrow and spend.