El Salvador. Car market grew 6.8% in 2018

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El Salvador vehicles market
Honda-Civic_Sedan-2019

El Salvador vehicles market in 2018 started recovering, after the 2017’s awful performance. Indeed, the year ended with sales at 9.379, up 6.8%.

Economic Environment

Salvadoran GDP growth in El Salvador reached 2.5 percent in 2018 and its per capita GDP is US$4,058. However, El Salvador suffers from persistent low levels of growth. Annual GDP growth has exceeded 3 percent only twice since 2000 and averaged just 2.3 percent in the last five years. The country’s economy is expected to grow at 2.4 percent in 2019.

El Salvador’s levels of public debt (70.7 percent of GDP in 2018) are a matter for concern. The pension system reform in 2017 reduced the financing needs of the public sector. As a result, it is expected that the fiscal deficit will stabilize around 2.5 percent of GDP in the coming years.

Market Trend

Salvadoran auto market is constantly losing terrain in recent years, after the record scored in the 2012.

Indeed, in the last two years the new vehicles market declined hitting in the 2017 the lowest level in this decade, with 8.783 sales, down 3.3% from the previous year. 

After several discussions regarding the opportunity to define more strictly rules for the import of used vehicles, no actions had been taken so far by the government and the new vehicles sales are penalized by the still huge bulk of used imported vehicles market.

In 2018, according to data released by the General Directorate of Customs, the market started recovering, with sales at 9.379, up 6.8%.

Service Solutions

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