It’s been five years since the Colombian car industry sold more than 12,000 units in a month – May 1998 (12,983). However, in June, automakers and importers sold dealers 12,054 vehicles, according to data gatherer Econometría SA.
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First half sales totalled 65,449 vehicles, up 27.2% year on year, and 130,000 units for the full year is the target. Close to 150,000 were sold in 1997.
The main reason for the strong sales this year is the US dollar, pegged at the same level as in 2001. Colombian peso revaluation was 3.02% in 2003; 13.98% in 2004; and 2.80% this year.
This is good news for importers because it makes fully imported cars more competitive. In fact, most local assemblers’ sales this year were full imports from Venezuela, Ecuador and Mexico rather than cars built here from CKD packs.
Other factors have also helped: in June, duties on imported cars with engines smaller than 1.4 litres were assessed at the same level (25%) as locally assembled units.
This came after the European Commission accused the Colombian government of import duty discrimination in a report dated March 2001. That year, fully imported cars attracted a 35% tariff and locally assembled vehicles 20%.
In the document (Trade Barriers Regulation – Proceedings concerning Colombian practices affecting Community exports of motor vehicles to Colombia), the EC cited just-auto.com as one of their sources of data.
As well as the duty adjustment on cars with sub-1.4-litre engines, there was a reduction of duty on Mexican imports (from 35% to 10%), and importers’ sales overtook those of local assemblers for a 51.3% market share.
GM still tops the sales chart, with 23,960 vehicles and 28.7% growth YTD. The General is followed by Sofasa (Renault and Toyota distributor), with 14,296. Third is Hyundai (7,833) and fourth CCA (Mazda and Mitsubishi), with 5,314.
Also of note: two Chinese automakers entered the Colombian market in June – Chana with micro-pickup trucks and Hafei with micro-vans.
Juan Vargas
