After a 50% year-on-year fall in new car sales in 2020, Panamanian businessmen expect a 25% increase in the number of units sold in the local market by 2021.
In Panama, the distributors' union is asking the government to open up sales channels, which is included in the third block of the return to normal scheme, whose start date has not yet been defined.
In Panama, social distancing measures have been applied and vehicle repair shops are allowed to have only 10 employees, which makes the provision of most services unfeasible.
For the Association of Car Dealers (ADAP), the decision of the Panamanian authorities to approve the reopening of vehicle workshops is positive; however, the restrictions applied in the context of the covid-19 outbreak complicate their operation.
Due to the crisis generated by the Covid-19, car dealers in Panama estimate that during 2020 the number of units sold could fall by almost 50% compared to the figure reported in 2019.
If businessmen's forecasts are true, the negative trend of recent years would continue, since during 2019 47,866 units were registered in the country, 6% less than in the previous year.
According to the reported decrease in new car sales in 2017 and 2018 in Panama, during 2019 the negative trend continued, as 47,866 units were registered, 6% less than the previous year.
Reports from the General Comptroller's Office of the Republic explain that since 2017 there has been a drop in new vehicle sales, since 56,905 units were sold that year, 15% less than cars sold in 2016.
After the number of new vehicles sold in Panama fell 11% between 2017 and 2018, this year the distributors’ guild estimates that the year-on-year decline could be just 2%.
Focusing on segments looking for SUVs is one of the strategies Panama's new car dealers are using to boost sales.
Focusing on segments that seek vehicles such as Data of the General Comptroller of the Republic of Panama specify that between 2016 and 2017 the number of new vehicles registered in the country fell 15%, and between 2017 and 2018 the fall was 11%.
In Panama, small cars gain market preference, as most buyers look for models ranging in price from $9,000 to $22,000.
The latest report of the General Comptroller of the Republic, according to the behavior reported in recent years, details that between January and November 2018 45,898 new vehicles were registered in Panama, 13% less than in the same period of 2017.
Consistent with the fall in new car sales reported in Panama since last year, fuel consumption has decreased around 6% up to September 2018.
Data from the General Comptroller detail that from January to September 2018, 12,938 new automobile type vehicles were registered, 21% less than the 16,299 units registered in the same period of 2017.
The union of vehicle dealers in Panama expects stability in sales of new cars next year, after the year 2017 showed deceleration with respect to the previous year.
Laestrella.com.pa reports that "...The executive explained in an interview with Xinhua that Panama should not expect to see a greater fall in 2018 than in 2017, following a period between2000 and 2016, with a slight interruption in 2008 and 2009, in relation to with the global crisis, in which Panama's economy grew significantly, as did vehicle sales."
Even though tax incentives have been in place since 2012 for buying hybrid or electric vehicles in Panama, preference for these types of cars in the local market is still low.
Law 69 of October 12, 2012 contemplates tax incentives for the import of hybrid and electric cars framed within the promotion of new and efficient techniques and technologies in energy consumption.
The dealers' association projects closing 2017 with a 10% drop in new vehicle sales compared to last year.
The figures for the first three months of the year have not been very encouraging for companies that import and sell new cars in the country, since during that period the number of new vehicles registered was 11% lower than in the first quarter of 2016.
The union of vehicle dealers reported that the brands Toyota, Hyundai and Kia led sales in the country, with 35,000 units sold in 2016.
Figures from the Association of Automobile Dealers in Panama (ADAP) indicate that these three brands are the most commonly traded in the country. Capital.com.pa indicates that the Toyota brand"... leads the list with 42,249 vehicles sold in the last three years. In 2014 14,223 cars were sold and although in 2015 there was a drop in sales (13,642) they rebounded in 2016 and 14,384 cars were sold."
In the first quarter of the year,14,891 new cars were sold, which is 1,298 more than in the same period last year.
It is expected that this year the growth rate will be maintained and will rise above the 7% increase that was reported in 2014, when 60,000 new cars were sold during the year. Toyota, Hyundai, Kia, Nissan, Suzuki and Honda were still the most sought after brands, according to information from the Association of Automobile Dealers of Panama (ADAP).
In 2014 60.304 new vehicles were sold, 7% more than in 2013, with Toyota, Hyundai and KIA being the top of the list of best selling brands.
According to the Automobile Dealers Association of Panama (ADAP), sales projections for 2014 were for 58,000 units, however, with the Panama Motor Show sales surpassed 60,000 units. It is expected that for 2015 growth will be around 2% to 4%.