Peru 2020. Top brands underperform in market down 17.5%

Peru car market
The 2021 Jaguar XE

Peruvian vehicles market falls due to the global pandemic affecting sales. Indeed, Full Year 2020 sales have been 125.090, down 17.5% compared to 2019. The top 3 brands (Toyota, Hyundai Kia) fall severely and lose market share.

Economic Environment

The gradual economic recovery appears to be continuing in H2: Economic activity expanded in August, albeit at a slower pace than in July, amid the staged reopening of commercial activities.

More recently, business confidence turned positive for the first time in nine months in October after credit growth surged in September, while the finance minister announced on 5 November that mining and construction operations would not be halted in the event of a second national lockdown, boding well for activity in Q4.

Moreover, the resumption of international flights and the reopening of key tourist sites in November will be a welcome boost to the shattered tourism industry. Meanwhile, President Vizcarra was removed from office on 9 November after Congress unexpectedly voted to impeach him over as-yet-unproven corruption allegations.

The move promotes the head of Congress, Manuel Merino, to interim president and plunges the country into political disarray ahead of elections scheduled for April 2021.

Market Trend

The Peruvian vehicle market has been affected in 2020 by the global COVID-19 pandemic, which impacted sales significantly. 

The market has been growing consistently in the decade 2004-2013 hitting a record of 174.495 sales before being frozen by economic recession and decline for three consecutive years at the 153.876 sales in 2016. However, in 2017 the market stabilized posting a feeble recovery, with 163.668 sales, up 6.4%. In 2018, the market has been quite unstable, closing with 147.803 sales, losing 9.7%.

In 2019, according to data released by the A.R.A.P.E.R. (Association of Peruvian Car Manufacturers), they held a flat trend. Indeed, Full-year registrations have been 151.658 (+0.2%).

Full-Year sales for 2020 have been 125.090, reporting a 17.5% decrease compared to 2019.

Brand-wise, this year the leader Toyota (-23.9%) lost 1.5% market share, followed by Hyundai (-31.1%) which lost 2% market share. Kia (-35.3%) was in the third position and lost 2.1% market share as well.