Automotive Sector: Strategies in the New Business Reality

Making alliances with factories, applying distance protocols at points of service and encouraging the use of digital platforms are some of the strategies that have begun to be implemented by new vehicle distributors in the region.

Monday, May 4, 2020

Managers of Grupo Q, a company that operates 40 salesrooms in Central America, explained that given the spread of covid-19 and the restriction of consumer mobility, they are working to deepen alliances with factories and achieve a comprehensive chain of savings in different areas.

You may be interested in "Vehicles: Post Quarantine Sales Outlook"

Regarding the decline in sales, José Roberto Renderos, brand manager of Grupo Q, told Elmundo.sv that "... We had a fall as a sector of 70% (in March) and for the rest of the year there are estimates worldwide of falls of between 30% and up to 50%, depending on the markets."

According to reports from CentralAmericaData, it is predicted that when Central American economies begin to relax the measures taken to prevent the spread of covid-19, sales of motor vehicles will contract by about 45%.

Also see "Vehicle Repair: Business Outlook"

Renderos added that "... the most serious situation of all is that of El Salvador, because the closure is total. In the rest of the countries of Central America they operate partially, generating some form of income to sustain operations, but especially jobs."

Ask for specific forecasts for your country and your business sector in the interactive report "Information System: Covid-19 and Business Outlook."

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More on this topic

Used Cars: Demand in the New Reality

September 2020

During the first seven months of the year, 26,188 vehicles were imported to El Salvador, of which 18% were new units and 82% were used. Second-hand cars are still in demand in this new business scenario.

According to representatives of the Association of Vehicle and Automotive Parts Importers (Asiversa), the demand for used vehicles has been maintained in this context of economic crisis, but sales have fallen due to the drop in prices.

Commercial Vehicles Boost Recovery

September 2020

After vehicle sales practically disappeared due to the decreed quarantine, the distributors in El Salvador begin to notice an incipient reactivation of the market, which is explained by the demand for units for commercial use.

Months ago CentralAmericaData predicted the behavior that is currently confirmed by vehicle distributors in El Salvador.

Vehicles: New Reality, New Strategies

May 2020

Focusing on increasing income from after-sales services and making alliances with banks to offer better financing conditions are some of the strategies that car dealers in Panama intend to implement in this new reality.

Representatives of Ricardo Perez S.A., a Toyota brand distributor in the country, believe that because the purchase of a vehicle represents the second most important financial transaction in a family, the automotive sector will be seriously affected in this context of the spread of covid-19.

Car Sales Collapse Again

May 2020

During 2019 and the first month of 2020 in Nicaragua, light vehicle distributors reported that their income improved compared to 2018, however, in February and March of this year sales fell again, due to the crisis caused by covid-19.

In 2018 a political and economic crisis occurred in the country, which impacted the sales of the automotive sector, since for that year on average 200 new units of light vehicles were sold per month.

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