A month on from the government’s announcement of a special interest rate offer on locally assembled vehicles, Colombian new vehicles sales slowed to 15,324 units last month, 302 fewer than in February.
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Econometría analysts said sales were down 17.5% year to date because the economy had slowed to 0% growth. They project GDP growth of 2.5% to 3.5%, so the full year tally could be close to 200.000 vehicles.
Current consumer apathy is due to understandable concern about how long and how deep the credit crisis will go.
Oliverio García, executive director of the Colombian Automotive Association (ANDEMOS), said: “Getting interest rates down does not help commerce because people are afraid and don’t want debts. If you want to help the automotive market, get the prices down through tax reduction.”
He was referring to the fact that Colombia levies the highest tariffs and VAT on vehicles in the region. The Economist Intelligence Unit said in a recent report that Colombia is 49th out 57 countries in the world with the most expensive cars.
Passenger car sales in the first quarter of 2009 fell 17.8%; taxis were down 0.3%; SUVs off 11.5%; pickup trucks down 18.6%; vans down 24.7%; trucks off 40.4%; and buses up 1.4%.
Audi was the fastest growing brand, with sales up 50% year on year; Mercedes-Benz (passenger cars, trucks and vans) grew 33%; Hyundai 12.6%; Volkswagen 10.7%; and Subaru 1.8%.
BMW last month launched its updated 3 series and the X5 diesel; Ford the F-150 double cab; Kia the new Soul; and Porsche opened two new dealerships in Medellín and Cali.
Juan Vargas
