New models, better financing conditions and increased imports of used units would boost the sale of electric vehicles next year in Costa Rica.
Danissa, Q Group, BMW and Laudreni Auto, agencies in the country dedicated to marketing electric vehicles, estimate that between 2019 and 2020 their combined sales will increase by 45%, from 342 to 497 units.
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.
Entrepreneurs in the sector have stated that the phenomenon affects Costa Rica exclusively, since at the global level prices of automobile sales are maintaining an upward trajectory.
According to statistics from the Ministry of Finance in Costa Rica, 5,835 new and used units came into the country in the first five months of the year, which represents a 16% drop compared to the same period in 2017.
Up to December 2017, 45% of the vehicles circulating in countries in the region were automobiles, and 13% were light load units.
Data from the report "Vehicular Fleet in Central America", compiled by the Business Intelligence Unit at CentralAmericaData, details the different characteristics of the vehicles that transit the streets of Central American countries.
Currently, the average engine size of new cars sold in Guatemala is 1,485 cc, while in 2011, the average size was around 1,625 cc.
Figures from CentralAmericaData's report entitled "Central American Vehicle Park" show that between 2011 and 2017, the average engine size of the vans sold in Guatemala was also reduced, as in 2011 average engine capacity was 2,962 cc, while in 2017 this figure is around 2,419 cc.
In December 2016, 20% of the vehicles circulating in the countries of the region were between 1 and 5 years old, and 19% between 6 and 10 years old.
Data from the report"Vehicle Fleet in Central America 2016" compiled by the Business Intelligence Unit at CentralAmericaDatashows the different characteristics of the vehicles circulating in Central American countries.
In Costa Rica, companies in the automotive sector predict that eventual abrupt increases in the price of the dollar would have a greater impact on the spare parts market than on the sale of vehicles.
Most of the vehicle distribution agencies in the country agree that if the exchange rate continues its upward trend, a negative effect could be seen on the automotive spare parts market, since these are products that are imported in dollars but sold in colones, the local currency.In the case of vehicles, which are marketed in dollars, most companies believe that the dollar price increase has not yet had a significant impact, but they are focusing on advising their customers on how to manage the foreign exchange risk when taking out a loan to buy a car.
About 50% of the 147,000 new vehicles sold between March 2016 and December 2017 were financed by banks and financial institutions, for close to $1 billion.
An analysis of the vehicle fleet in Costa Rica by the Business Intelligence Unit at CentralAmericaData reveals that placement of loans for vehicle purchases during the period between March 2016 and March this year amounted to $1.2355 billion.
Of the total number of vehicles circulating in the country in January 2017, 61% corresponded to automobiles, 21% to motorcycles, 11% to light-duty vehicles and 3% to heavy loads.
Figures from the"Central American Vehicle Park"report, prepared by CentralAmericaData's Business Intelligence Unit, indicates that in January 2017, 1.5 million vehicles were circulating, of which more than half corresponded to automobiles.
Of all vehicles circulating in the country at the end of 2015, 63% were automobiles, 19% motorcycles, 13% light duty vehicles and 3% heavy load vehicles.
Figures from the report "Vehicular Fleet in Central America" prepared by the Business Intelligence unit at CentralAmericaData.com, indicate that 1.3 million vehicles were in circulation up to December 2015, of which 63% were cars.
In the first five months of the year nearly 36 thousand vehicles came into the country, 26% more than in the same period in 2015 and 24% more motorcycles.
Of the 35,690 vehicles that entered the country between January and May 2016, 72% were new units, and the rest were used.In the same period, the country imported 32 thousand new motorcycles.
In the past five years used cars lost 24% of market share due to improvements made in installment terms and interest on loans for buying new vehicles.
The market for used vehicles in Costa Rica has seen five years of decline, lacking attractive incentives for imports and being at a competitive disadvantage to the new vehicles market.
Although it has not yet reached pre-crisis 2008 figures, imports of vehicles continue to grow, with 47,750 units imported in the first eight months of the year.
The Association of Importers of Vehicles and Equipment reported the entry between January and August of 47,750 units, of which 26,561 correspond to new cars and the remaining 21,190 were used ones.
In 2014, 84 000 new and used vehicles were sold in Guatemala, Costa Rica and Nicaragua alone, and it is expected that 2015 will close with an annual growth of nearly 10% across the region.
While the region has generally shown an upward trend in the marketing of vehicles, mainly new ones, the characteristics of each of the countries, particularly with regard to access to bank credit, makes the behavior of the auto market different in each.
The Costa Rican Automotive company has acquired a car dealership in Dallas, bringing the number of subsidiaries of the company operating out of Costa Rica to five.
The new branch in Texas, was born under the brand Atkinson Toyota South Dallas and is dedicated to marketing Toyota and Scion brands of cars. Purdy Motor plans to continue expanding its operations primarily in North America.
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