Just before closing in 2023, the automotive sector is experiencing its first decline in accumulated sales this year. A few months ago, they already noticed a decline, but in November the decline reached 16.6% and thus sales from January to November recorded a negative balance of -0.4%. 441 fewer vehicles were sold than in the same period in 2022.
The latest report from the Association of Automobile Companies of Ecuador (Aeada) shows that 123,409 vehicles have been sold so far this year (last year there were 123,850 on this date). Until October, there was still an accumulated growth of 1.4%. But already in November – in that month alone – 10,280 new vehicles were sold, two thousand less than in November 2022, when 12,328 were sold.
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The decline in sales is also visible in comparison with the units sold in October (10,426), which is 1.4% more than those sold in November last year.
The segment of light vehicles: cars, trucks and SUVs has an accumulated decline of 0.5% with 596 fewer units sold and an even greater decline in November (-17.7%). The union explains that this drop is a consequence of the drop in sales of trucks and passenger vehicles, which decreased by 25 percent and 21 percent.
Sales of commercial vehicles (vans, buses and trucks) also show a decline of 7.1%, falling from 1288 units sold in November 2022 to 1196 units last November, with truck sales being the most affected with a decrease of -13.8 %, towards to Aeada. However, this category overall still has a positive cumulative of 1.1%, albeit showing a month-on-month slowdown.
Stagnation of the economy affects the decline in sales
Genaro Baldeón, CEO of Aeade, comments that vehicle sales have been constantly decreasing in the last five months, for example, the second half of 2023 is 12% below that of the same period in 2022.
Why do these sales collapses occur? It explains that vehicle procurement is linked to the performance of the economy, access to and costs of finance, consumer expectations and, in the case of commercial vehicles, business confidence.
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Analyzes that several indicators speak of the stagnation of the economy. “This shows the decline in global turnover of various economic activities in recent months,” explains the main cause of the drop in sales.
In October, the World Bank indicated that the Ecuadorian economy would grow by 1.3% in 2023 and predicted that it would be 1.90% in 2024 and 2.20% in 2025. On the other hand, the Central Bank of Ecuador initially forecast growth of 3.1% for 2023, but adjusted it to 2.6% in March and 1.5% in September.
Records in electrified vehicles and motorcycles
The segment that maintains the upward trend is hybrid and electric vehicles. In November, 1,440 of these vehicles were sold, which corresponds to 14% of total sales.
Electrified vehicles have grown by 44% in sales and already have a 9% market share
Its accumulated sales are up 72.6% when comparing the 11,129 units sold from January to November 2023 with 6,449 in the same period last year. Also, comparing sales in November (1,440), a growth of 113% is recorded compared to November 2022 (676). Aeade classified these indices as historical sales records.
Another segment that records records are motorcycles. Last November, 19,829 units were sold, up 11% from November 2022 (17,853) and has achieved accumulated growth of 6% year-to-date in 2023 (I)
Source: Eluniverso
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