Guatemala. Toyota holding 25.8% in a moderately positive market

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Guatemala vehicles market
Kia-ProCeed-2019

Guatemala vehicles market in 2019 is reporting a moderately positive performance. Indeed, Year to Date November sales have been 22.693, projecting the full year to 25.538, up 5.7%. Toyota leads with 25.8% of share, keeping a wide gap over Hyundai and Kia.

Economic Environment

Guatemala economy seems to have accelerated again in the third quarter, judging by the monthly economic activity index, after growth picked up in the second quarter. In September, economic activity was buttressed by robust growth in the wholesale and retail trade, manufacturing, and financial services sub-sectors.

On the other hand, the merchandise trade deficit widened in the three months ending in September compared to Q2 despite strong export growth, likely weighing on the external sector and by extension the wider economy. Although data for the fourth quarter is limited, remittances remained robust in October, boding well for private outlays.

Market Trend

Guatemala’s vehicles market hit the best level ever in the 2015 with a record of 30.359 sales, before to start declining. Indeed, total new vehicles sold in 2017 have been 25.419, down for the second year in a row, losing 4.8% from the previous year.

The reasons behind this decline is caused by the unfair competition of used vehicles imported and sold in Guatemala’s market without regulations or restrictions on the age, condition or condition of the vehicles. More over, in Guatemala the approval of a gas emission regulation is urgently needed, which could help to prevent the entry of vehicles, which have been banned from travelling abroad due to the high levels of pollution.

Indeed, even the 2018 closed up negatively with sales down 4.9% – according to the forecast – with 24.168 units.

The Superintendency of Tax Administration (SAT) is promoting, although there is nothing concrete, new controls to prevent the entry of used vehicles with anomalies, structural defect of problems.

In 2019, the market is likely to report a small improvement from last year. Indeed, according to data released by the local association of car manufacturers (AIDVA), Year to Date November sales have been 22.693, projecting the full year to 25.538, up 5.7%.

Toyota holds the market throne – with 25.8% of share – keeping a wide gap over the followers. Hyundai and Kia are contending the second position, but the former is actually ahead by a few units, holding 14.5% of share.

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