Authorities plan to remove the selective consumption tax and customs duty on importation of hybrid vehicles, and to limit imports of used cars.
If approved these measures will revitalize the auto market with the use of modern environmentally friendly technologies, which will mean more investment in suitable workshops and trained personnel for their maintenance.
Sales of new cars at the end of 2012 in Nicaragua will total over 12,000 units.
Data published by the Central Bank of Nicaragua (BCN) indicates that during the first five months of the year imports of sedans, vans, minibuses, trucks and ATV’s have gone up relative to previous years, surpassing even the 2008 statistics.
In the view of Charles Benda, secretary of the Nicaraguan Association of Motor Vehicle Dealers (Andiva) the increase in sales is related to the "... improvement seen in the export sector: the high price of livestock, meat and coffee, and dynamism of the economy", reports Laprensa.com.ni.
Car dealers project selling 8,500 units by the end of 2011, 20% more than in 2010.
The Nicaraguan Association of Motor Vehicles, Andiva, said that despite the increase, the country remains the smallest importer of vehicles in the region.
"2011 is a year of recovery for the new vehicle industry," said, Sergio Mantica, Isuzu Sales Manager, Nicaragua and organizer of the Fair Andiva 2011 to El Nuevo Diario.
Although the numbers do not match those of 2007, a record year, in 2011 Nicaraguans are set to spend $112 million on new vehicles.
In 2009, unit sales fell by 50%, in the context of the global economic crisis. Recovery starting in 2010 recovery has now been confirmed in 2011 being spurred on by the growth of the Nicaraguan economy.
It is estimated that during the year over 8000 new vehicles will be sold according to the sales projection from the first half. With an average price per unit of $ 14,000, the years sales will be about $112 million.
In 2010 sales totaled 6.627 new cars, 29% higher than in 2009.
Despite the increase, officials of the Nicaraguan Association of Motor Vehicle Dealers (Andiva) indicated that the figure is far from the levels of 2008, when it totaled to 10.500 units.
"Andiva expected for this year to at least maintain 2009 sales levels, or grow between 5 to 10 percent, which would raise vehicle sales to more than seven thousand units," reports Laprensa.com.ni.