Speculation over the effects of a trade agreement signed between Colombia and United States caused a downturn in Colombian vehicle sales last month.
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Econometría said 3.4% or 738 fewer vehicles were sold compared to October.
The trade agreement actually said that, in the next 10 years, there will be a gradual VAT and tariff decrease between the two countries, beginning 1 January 2008. Right now, tariffs are about 35% on most imported cars.
But some media said things like “tariffs will fall to zero on New Year’s Eve”, gossip spread and sales fell.
Nonetheless, the Colombian market is up 38.4% YTD with 182,336 vehicles sold. Best improving brands were Ssangyong (174.5%), Subaru (153.9%), Ford (68.0%), Kia (52.8%) and Daihatsu (50.3%).
The general industry view about next year’s sales suggests another 10% hike due to the country’s economic growth (5% projected for 2007) and stable government policies.
Juan Vargas
