Car Sales Collapse Again

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.

Tuesday, May 12, 2020

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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By 2019, the situation has improved and according to reports from businesspeople, an average of 350 units per month have been placed. This year was promising, given that 480 vehicles were sold in January. However, the health crisis resulting from the covid-19 outbreak has prevented the sector from recovering. reports that "... in February and March this year vehicle sales fell to 370 units per month, 110 units less than in January, which is equivalent to a 22% contraction compared to January's results."

Also see "Vehicle Repair: Business Outlook"

For the economist Luis Murillo, "... in this new context there are two serious problems, on the one hand the commercial houses are going to be left with a vehicle fleet that they will not be able to place and on the other hand the debtor is not going to be able to continue paying and runs the risk of losing his investment if the government does not remove a moratorium."

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

For specific forecasts for your country and your business sector, see the interactive report "Information System: Covid-19 and Business Forecasts".

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