The number of new light cars sold in Ecuador reaches 113,397 between January and November of this year17% more than in the same period of 2021 when 97,206 were sold, which shows that the Ecuadorian car sales market is recovering.
The new commercial vehicles (trucks, vans and buses) purchased between January and November of this year total 15,12620% than the same period of time in 2021.
The top 6 of the brands that accumulate the most units sold this year are, in order, Chevrolet, Kia, Toyota, Hyundai, Chery and Renault, according to figures from the Association of Automotive Companies of Ecuador (Aeade).
Genaro Baldeón, executive president of Aeade, acknowledges that currently the offer available in Ecuador is diversifying. “However, in the country each time the availability of vehicles with price ranges of up to $15,000 decreases, because the models that enter have better equipment and production costs in the world have increased due to higher costs of raw materials, energy, logistics and global inflation”.
In addition, the Vehicles in Ecuador pay 22 taxes that make their price more expensive and that hinders access to vehicles with new technologies, adds Baldeón.
In the automotive sector, he hopes that the President of the Republic, Guillermo Lasso, fulfills his campaign promise to reduce the tax burden that adds up and makes the final price of cars among the highest in the region.
Jaime Cucalón, president of the Ecuadorian Automotive Association (AEA), affirms that Chinese-made cars entered to take 50% of the Ecuadorian market. “It includes cars at very low prices, which has made them more accessible to citizens, this was not the case five years ago. There are dozens of Chinese vehicle brands.”
The list of the ten cheapest cars in the Ecuadorian market includes three Chinese-made: two electric and one fuel.
The high tax burden remains, says Cucalón. “The only ones that have lowered their tariffs are hybrids and electrics, but these have a marginal import.”
“Although there is a recovery in sales, we are still waiting for the regime to lower taxes as offered in the campaign, so prices will be more realistic in relation to other countries,” says Cucalón,
There are Vehicles in Ecuador that cost double what they are worth in Peru or Chile. “In this country, cars are paid two for one. In Mexico they cost 30 or 40% less than the price here. The reduction in taxes would allow us to have cars of a much better quality, with less consumption and pollution at more affordable prices”.
There is no short-term measure aimed at reducing the tax burden, says Cucalón. The only thing that could lower its price is the entry into force of the trade agreements that the country is negotiating with South Korea and Mexico. “As long as something like that doesn’t happen, I don’t think there will be a government decision to lower tariffs, even though it was a campaign offer.”
Historically it has been said that the cars were loaded with taxes to cover the fuel subsidy, but today the latter are lower, but the price of the car taxes is still high, says Cucalón.
The sector plans to reduce the special consumption tax (ICE) which is up to 35% and tariffs with a ceiling of up to 40%. With the application of both, the price of new imported cars doubles. “In car sales companies half of what they produce is to pay taxes.”
The ten most economical vehicles in the Ecuadorian market*
1.- D1 of the Zhidou brand ($8,690).
It is electric, has a range of 100 km, a maximum acceleration of 120 km/h and a power of 18 kW. It charges for six hours on a 220 volt line. It has three doors, speeding alarm, electric windows, 5-inch digital screen and air conditioning.
2.- JY7222-ZQR 4X2 from the Jiayuan brand ($9,200).
It is completely electric and for city use. It allows you to travel with a range of 80 to 100 km and recharges in a 110 or 220 volt outlet in six to eight hours. It has a free height to the ground of 18 centimeters. It is automatic transmission and has disc brakes on all four wheels.
3.- Picanto 1.0 X Line of the Kia brand ($13,099).
It is one of the brands preferred by Ecuadorians and has the guarantee of the technology of the South Korean transnational. Between January and November of this year, 2,845 units of the Kia Picanto have been sold, ranking second in the list of best-selling car models in the country this year. This is the most basic Kia Picanto version without air conditioning.
4.- Picanto 1.2 X Line of the Kia brand ($13,899).
Of gas. It’s a five-speed manual plus reverse. 1.2 L MPI (multipoint injection) type engine with electronic power steering, without air conditioning. Front disc and rear drum brakes and electric front windows. Fuel consumption of 85 km per gallon.
5.- Picanto 1.0 X Line AC from the Kia brand ($14,099).
This version is gasoline with air conditioning. It’s a five-speed manual plus reverse. 1.0 MPI engine with electronic power steering. Front disc and rear drum brakes, and electric front windows. Gasoline consumption of 90 km per gallon.
6.- KWID Zen AC 1.0 5P 4X2 from the Renault brand ($14,345).
It is a compact with all the equipment that an SUV has. It is the only one in its category with electric steering, which allows greater control at the wheel and more comfort in each manoeuvre. It has an instrument panel with LED screens, air conditioning and electric front windows.
7.- Arrizo 3 Comfort from the Chery brand ($14,690).
This Chinese proposal is equipped with a 1.5 cc Acteco engine and has a power of 107 HP (horsepower). It also has radar and reversing camera, airbags front, driving safety systems (ABS, EBD, ESP), tire pressure monitoring and air conditioning. It consumes a general average of 67 km per gallon.
8.- GranDi10 1.2 5P TM HB AC (CKD) of the Hyundai brand ($14,990).
The smallest hatchback of this company offers low fuel consumption, anti-lock braking system (ABS), electronic stability control (ESP), four-wheel disc brakes, electric locks with central locking, electric windows, air conditioning, among other features .
9.- Sandero Zen Phase II AC 1.6 5P 4X2 TM of the Renault brand ($14,995).
It has a 1.6 L engine with 111 HP (horsepower) and air conditioning. It complies with the Euro V standard, therefore it generates fewer emissions of polluting gases. It has a distribution chain and does not require changing the belt, three-point safety belts, electronic stability control and hill start assistant.
10.- Picanto 1.2 X Line AC from the Kia brand ($15,099).
It is gasoline, manual, five-speed plus reverse. Engine type 1.2 L and 83 HP with MPI (multipoint injection) and electronically assisted steering. Front disc and rear drum brakes and electric front windows. Fuel consumption of 85 km per gallon. (YO)
*The prices of the cars are referential according to the Aeade.
Source: Eluniverso
Paul is a talented author and journalist with a passion for entertainment and general news. He currently works as a writer at the 247 News Agency, where he has established herself as a respected voice in the industry.
