Guatemalan vehicles market decreases only marginally despite COVID-19 pandemic. Indeed, Full Year 2020 sales have been 23.856, down 3.5% compared to 2019. Toyota holds more than 25% market share and keeps growing.
Economic Environment
The economy likely remained in the doldrums in Q3 amid the ongoing health crisis. Economic activity continued to contract in July–September, although the drop in September was the softest since the outbreak of the crisis in March.
Moreover, merchandise imports dropped at a quicker rate in July compared to the prior month, suggesting that domestic demand remained frail. More positively, however, exports of goods returned to growth in the same month for the first time since February, while household consumption should have been supported by solid growth in remittance inflows in Q3, although the pace of expansion eased from the prior quarter.
Turning to Q4, prospects are less than rosy due to a surge in new Covid-19 cases across the globe, which will likely dent exports and the tourism sector, while remittances could suffer from renewed restrictions abroad
Market Trend
The Guatemalan vehicle market has been slightly affected in 2020 by the global COVID-19 pandemic, which did not impact sales significantly.
The market hit the best level ever in 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 are 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. Moreover, 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 traveling abroad due to the high levels of pollution.
Indeed, even 2018 closed up negatively with sales down 4.9% – according to the forecast – with 24.168 units.
In 2019, the market reported a small improvement from last year. Indeed, full-year sales were 24.727, up 2.3%.
Full-Year sales for 2020 have been 23.856, reporting only a 3.5% decrease compared to 2019.
Brand-wise, this year the leader Toyota (-1.9%) gained 40.4% market share, followed by Hyundai (-4.9%), which lost 0.2% share. Kia (-3.2%) was in the third position and gained 0.1% market share.
The most sold model in the country is the Toyota Hilux with 2.909 sales (-2.6%), holding 12.2% market share.
