The end of 2023 was not according to the expectations of the automotive sector, which estimates that sales fell by 2%, which is contrary to initial projections of growth of up to 5%. However, while most segments have declined, two have grown in supply and demand in the local market: electrified vehicles and motorcycles.

Genaro Baldeón, Executive President of the Association of Automobile Companies of Ecuador (Aeade), points out that despite the reduction, the commercialization of electric and hybrid vehicles increased by 73%, and motorcycle sales increased by 6%.

With an estimate of 2% lower sales, the automotive sector ends a complicated 2023 and predicts an equally difficult 2024.

The latest union report showed that between January and November 2023, 11,129 units of this type of vehicle were sold, in November alone 1,440, which represents 14% of total vehicle sales and also an increase of 113% compared to November 2022, when 676 units were sold .

Baldeón indicates that there are factors driving this hybrid and electric market, on the one hand, a greater preference for sustainable mobility, and on the other, awareness of the impact of mobility on the environment.

However, the biggest incentive is explained by tax breaks for vehicles with new technologies. “The payment of tariffs, VAT (value added tax) and ICE (special consumption tax) for electric vehicles has been abolished; and for hybrids, a differentiated tariff scheme is applied and the payment of ICE is exempted,” analyzes Baldeón.

In addition, it shows that the supply of electrified vehicles has increased globally, including significant growth in Latin America. Ecuador is no exception, because by the first half of the year alone, sales had already increased by 53% compared to the previous year.

This is also reflected in the increase in supply. Baldeón points out that the hybrid and electric market has diversified in the country and that the number of available models has increased by 720%, going from an offer of 13 models in 2015 to 107 in 2023.

Best-selling electric and hybrid models

(from January to November 2023):

Other: 1,673 units sold

Total: 11,129 units sold

Sale of motorcycles with historical records

On the other hand, in the case of motorcycles, Aeade supports its good performance in the search of Ecuadorian consumers for alternatives for their mobility. “Faced with a panorama of high insecurity and economic uncertainty, they have found a more affordable answer in motorcycles, which has diversified considerably in recent years. The growth of motorcycle sales showed figures in the few months of 2023 that are considered historical records,” says Baldeón.

Union data shows that 184,618 motorcycles were sold from January to November, 10,422 units more than in 2022. May and November were the months in which the most motorcycles were sold in Ecuador with 20,005 and 19,829 respectively.

7 out of every 10 motorcycles sold in Ecuador are Chinese and 29% of buyers are in Guayas. What are the best selling brands?

This market is also dominated by Chinese brands. Four out of every five motorcycles sold in Ecuador are Chinese.

These are the five best-selling motorcycle brands

(from January to November 2023):