The sector aspires to continue the recovery in sales during 2022, when it is just expected to exceed the levels of 201
Estimates indicate that by the end of this year around 120,000 units will have been sold, that is, 35,000 more than during 2020.
The seven taxes that make Ecuador sell the most expensive cars in the region
Between January and November of this year, 109,770 vehicles were marketed, in the same period of 2020 they were 76,268 and in 2019 121,654 were sold, according to the latest sales report from the Association of Automotive Companies of Ecuador (Aeade).
The leaders of the automotive sector believe that the recovery in sales will continue, despite the fact that there are no significant changes in taxes that imply a more pronounced reduction in prices.
Genaro Baldeón, president of Aeade, affirms that in 2020 there was a 35% reduction in the number of cars sold compared to 2019. “In 2021, sales are 45% better, but we are still 10% less than 2019, a year in which there was a 4% contraction compared to 2018.”
The latest tax reform in force since this month exempts all hybrid vehicles from the special consumption tax (ICE) regardless of their cost. Before there was only this tax exception if the car had a price cap of $ 35,000.
Since last September, the value to be paid for ICE has also been reduced by 15% in new technology cars that have maximum emission limits equivalent to the European Union standard EURO 4 or higher.
The ICE increases from 5% to 35% depending on the final value of the car.
“The reduction of taxes has helped the country have more supply, then, the consumer has a greater opportunity to choose and benefits from better price conditions, vehicles with modern technology can be bought at reasonable or affordable prices”, affirms Baldeón.
An expectation of the automotive sector to boost sales is the rationalization of the ICE and import tariffs, which is in the field of the central government. “The latest Economic Development Law delegates to the President of the Republic the power to reduce the ICE rate; this would be beneficial to the citizenry. It can also reduce the rate of the outflow tax (ISD) ”.
Jaime Cucalón, president of the Ecuadorian Automotive Association (AEA), indicates that during 2022 there should be greater growth, since the deliveries of the cars in the factories would be normalized, which was irregular in 2021.
The confinement and restrictions of production activities due to the pandemic caused delays in the manufacture of semiconductors (chips) in all factories, says Cucalón.
The forecasts are that 140,000 units will be sold during 2022. “Taxes on hybrids and electric vehicles have already dropped” and the tax on freight. “The tax on the exit of foreign currency begins to lower. These measures will help, in addition to the confidence generated by the Government of the President (of the Republic, Guillermo) Lasso ”.
When paying import duties, it is now calculated based on the cost of the car in port plus insurance, excluding the price of freight, which reduces this item that ultimately translates into the vehicle’s retail price.
Ecuador is one of the countries in the region where the cost of cars is higher due to the tax burden they have.
The Aeade selected the ten cheapest cars in the Ecuadorian market, those mentioned ordered from those with a lower price than the highest.
1.- Marca Zhidou (modelo Zhidou D1): $ 8.600
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.- Marca Chery (modelo Chery Q5 Luxury HB): $ 11.990
Fuel, it is of Chinese origin and a 1.0 L engine (multipoint electronic injection). It’s a five-speed manual with manually adjustable front seats. With fabric upholstery and electric glass.
3.- Chevrolet brand (Chevrolet Spark Life model): $ 12,600
Fuel, and 1.0 L SOHC engine. Front disc and rear bell brakes. Glass with manual elevation and the driver’s seat adjustable in height and the front ones are sliding.
4.- Marca Changan (modelo Changan Star 5 Pick up): $ 12.990
Fuel with 1,243 CC engine and 1,000 kg load capacity. It has an ABS anti-lock braking system. It is of Chinese origin. It’s manual, five-speed plus reverse.
5.- DFSK brand (model DFSK K01): $12,990
It is a fuel picop, with a load capacity of 900 kg. It is of Chinese origin and has a DK-12 type engine with 1.25 liter displacement. With air conditioning and electric front windows.
6.- Chevrolet brand (Chevrolet Spark GT model): $ 13,599
Fuel, with 1.2L DOHC four-cylinder engine. Front disc and rear drum brakes. With radio, 7 ” touch screen, electronic steering and air conditioning.
7.- Kia brand (Kia Picanto 1.0 X Line model): $ 13,610
Made out of fuel. It’s manual, five-speed plus reverse. 1.0 L MPI (multi-point injection) engine with electronically assisted steering. Front disc and rear drum brakes, and front power glass. Gasoline consumption of 90 km per gallon.
8.- DFSK brand (DFSK 07 Funvan model): $13,990
Fuel, with DK-12 engine and 1.25 L cylinder capacity. ABS brakes with front (ventilated) and rear drum discs and electronic assistance. Seat belt for eleven passengers.
9.- Kia brand (Kia Picanto 1.2 X Line model): $ 14,610
Made out of fuel. It’s manual, five-speed plus reverse. 1.2 L MPI (multi-point injection) engine with electronically assisted steering. Front disc and rear drum brakes and front power glass. 85 km per gallon fuel consumption.
10.- Shineray Brand (Shineray X30 Cargo model): $14,990
Fuel, with a 1.5-liter four-cylinder engine and a load capacity of 720 kg. Front disc and rear drum brakes. With front foggers and mp3 radio. ABS brakes.
Sales of commercial vehicles are the fastest growing
There are more new trucks on the roads of the country. Sales of this type of car that are part of the commercial segment (cars that are used in production activities) increased 31% between January and November of this year compared to the same period in 2020. If we compare with those sold during 2019, there is a 25% increase.
“The productive sectors require vehicles to move the load they have in internal and external trade, construction, agriculture or industry. This segment has a more accelerated recovery process than others, such as consumption in the case of light vehicles, ”says Baldeón.
A similar situation occurs in the case of vans, which are used for mixed activities, such as transporting light cargo and people. Its sale between January and November of this year was 38% higher than in the same period of 2020 and 12% higher than in the same time of 2019.
What is not recovering to pre-pandemic levels is the sale of vans. Until November of this year, 28% less were marketed than in 2019. Demand has dropped, since during 2020 and 2021 there has been no regular attendance at classes due to the pandemic.
The purchase of hybrid and electric vehicles has increased. Of the first, until November of this year 315% more have been sold than in 2020 and 183% more than in 2019.
From 1,311 hybrid cars that came out in 2019 and 892 in 2020 it rose to 3,706 through November of this year. (I)
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