In the countries of Central America, more than 21 million people are looking to buy a vehicle online, and of this consumer segment, close to 4% explore options for acquiring a Suzuki brand car.
CentralAmericaData's interactive information system monitors in real time the changes in consumer habits in all markets in the region, with fundamental information to understand the current commercial environment in which companies from all industries must operate.
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.
As the economies of Central America begin to relax the restrictions that have been taken to prevent the spread of covid-19, sales of pickup trucks are predicted to be among the most contracted.
Using a demand-income sensitivity model developed by the Trade Intelligence Unit of CentralAmericaData, it is possible to project the variations that household demand for different goods and services will undergo as the most critical phases of the spread of covid-19 pass and mobility restriction measures are lifted in the countries of the region.
The sharp drop expected in the income of centers dedicated to providing general mechanical services for cars and trucks in Central America will be mainly explained by the drop in demand from end consumers and bus rental companies.
The "Information System for the Impact Analysis of Covid-19 on Business", prepared by the Trade Intelligence Unit of CentralAmericaData, measures the impact that the crisis will have on companies according to their sector or economic activity, taking into consideration various scenarios for the coming months.
Costa Rica, Panama and Nicaragua are the Central American markets which reported reductions in sales of new and used vehicles during 2018.
According to figures from the Ministry of Finance of Costa Rica, from January to November 2018 imports of new vehicles totaled 31,008 units, and used vehicles 17,134 units, registering falls of 12% and 23% respectively compared to the first eleven months of 2017.
The union of vehicle distributors projects better results in the second semester than those obtained between January and June, closing the year 2017 with 19,000 units sold.
At the Andiva Motor Show 2018, which begins today in Managua, the Nicaraguan Association of Automotive Vehicle Distributors (Andiva) plans to sell between 1,800 and 2,000 units.
The business sector estimates that if the trend observed in the first semester is mantained, by the end of the year the overall sales will be 3,000 units below the sales of 2016.
The Superior Council of Private Enterprise (Cosep) estimates that in the first half of the year vehicle sales were 15% lower than those in the same period in 2016.According to the Cosep, last year 20 thousand vehicles were sold.
A reduction has been foreseen of between 15% and 20% in car sales this year, due to changes in the conditions of bank financing and insurance policies.
According to Rafael Lacayo, president of the Nicaraguan Association of dealers of Motor Vehicles (Andiva), the decision taken by banks to demand as a deposit 15% of the value of the vehicle instead of 10%, as has been the case until recently, will have a direct impact on sales this year.
In 2015 55,000 motorbikes were sold and importing companies plan to increase sales by 11% during 2016 to reach 62,000 units.
An article on Elnuevodiario.com.ni reports that "... Sales of these vehicles in the Nicaraguan market reached a volume of 55,000 units in 2015, representing the best commercial result since 2008 and an increase of 23% compared to 2014, according to the Nicaraguan Association of dealers of Motor Vehicles (Andiva).
During 2014 15.100 new vehicles were sold which is 4.45% more than sold in 2013.
Although the automotive industry experienced a slight slowdown in sales in early 2014, goals for the end of the year were reached, thanks to a rebound in the fourth quarter.
Elnuevodiario.com.ni reports that "... In 2012 a total of 12,524 units were sold, which demonstrates the annual rate of growth of the sector which is benefiting from the financing terms offered by various financial institutions. "
The country's economic growth is attracting new companies looking for space in a market that expects to sell over 15,000 new cars in 2014.
Automotive companies are planning significant investments in order to meet demand from Nicaraguan customers. Grupo Q will invest $12 million in 2014 mainly in infrastructure.
The Nicaraguan Association of Motor Vehicle Dealers (Andiva) has stated that "the goal is 15,225 units this year in sales from the distributors that make up the Nicaraguan Association of Motor Vehicle Dealers (Andiva)."
At the Andiva Fair held on 20 to 24 November 1200 cars were sold, almost double the amount reported in 2012.
In terms of trade this sector of the economy generates up to $400 million a year.
According to Alvaro Rodriguez, vice president of the Nicaraguan Association of Motor Vehicle Dealers (Andiva), the event's success is due in part to the banks which took part offering credit facilities with low interest rates and quick credit approval.
Distributors expect that at the end of 2013 a record will be broken when they register sales of 14,000 new cars.
Laprensa.com.ni reports: "The stabilization that the industry has experienced in recent years has been driven in part by attractive financing rates and the various marketing strategies which have been carried out."
One of the strategies is the trade sector fair Andiva Motor Show produced annually by the Nicaraguan Association of Automotive Vehicle Dealers (Andiva). In 2013 the sector expects 5% growth in sales, reaching 14,500 new vehicles, said Rafael Lacayo, president of Andiva.
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.