During May 2020, only 96 vehicles were reported for sale in the Panamanian market, 98% less than the same period in 2019.
The General Comptroller of the Republic reported that in the context of restrictions to economic activity by the outbreak of covid-19sales have fallen considerably, since between May 2019 and the same month of 2020, the number of new units registered in the country decreased from 4,048 to 96.
At the beginning of 2020, 25% of the automobile type vehicles circulating on the streets of Central American countries were of the KIA, Suzuki, Mazda and Nissan brands, while of the total of light cargo vehicles, Ford, Mitsubishi and Chevrolet monopolized 14%.
The report "Vehicles in Central America", from the Trade Intelligence Unit of CentralAmericaData collects the most updated information on the automotive market in Central American countries.
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.
From January to April 2020 companies in the countries of the region imported from Mexico new tires for $5.9 million, exceeding in 13% the reported in the same period of 2019.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
In Guatemala since April 12, interactions in the digital environment associated with the purchase of vehicles has rebounded; however, in April and May, prices of cars and pickups grew more slowly compared to the number reportes on the first quarter of the year.
Through a system that monitors in real time changes in price levels, interests and consumer preferences in Central American countries, developed by CentralAmericaData, it is possible to project short and long term demand trends for the different products, sectors and markets operating in the region.
In Costa Rica, Bridgestone began partial operations on May 11 and now announces that it will completely normalize its activities at the plant in Heredia by the end of June.
Following the outbreak of covid-19 in the country, the tire manufacturer decided to temporarily close the operations of its plant located in the canton of Belen.
During the first two months of 2020, motorcycle imports into the markets of El Salvador and Panama contracted the most, with year-on-year falls of 38% and 36%, respectively.
Figures from the Trade Intelligence Unit of CentralAmericaData: [GRAFICA caption="Click to interact with graphic"]
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.
Focusing on increasing income from after-sales services and making alliances with banks to offer better financing conditions are some of the strategies that car dealers in Panama intend to implement in this new reality.
Representatives of Ricardo Perez S.A., a Toyota brand distributor in the country, believe that because the purchase of a vehicle represents the second most important financial transaction in a family, the automotive sector will be seriously affected in this context of the spread of covid-19.
So far this year in the Central American markets, the interest in vehicles for cargo transport reported a clear upturn, with Guatemala, El Salvador and Panama being the countries that registered the greatest increases in interactions associated with the topic.
Through a system that monitors in real time changes in consumer interests and preferences in Central American countries, developed by the Trade Intelligence Unit of CentralAmericaData, it is possible to project short and long term demand trends for different products, sectors and markets operating in the region.
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.
Making alliances with factories, applying distance protocols at points of service and encouraging the use of digital platforms are some of the strategies that have begun to be implemented by new vehicle distributors in the region.
Managers of Grupo Q, a company that operates 40 salesrooms in Central America, explained that given the spread of covid-19 and the restriction of consumer mobility, they are working to deepen alliances with factories and achieve a comprehensive chain of savings in different areas.
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.
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.
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