In a context of lower consumption by Colombian households due to the already economic slowdown in the country, the automotive sector continued for another month in the red.
As reported by the National Association for Sustainable Mobility (Andemos), vehicle registrations reached 14,435 units in June, which represents a 38 percent reduction compared to the 23,323 registered in the same period of the previous year.
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Despite the fact that car sales have fallen in every month of this 2023, this is the most pronounced so far this year. The May reduction was 30 percent; that of April, 33 percent; that of March and February, 17 percent, and that of January, 20 percent.
total, there are 9 consecutive falls if those of October, November and December of last year are also counted, which were 3, 4 and 13 percent, respectively. The last positive month was September 2022, with a 5 percent increase in sales.
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The industry has presented a significant economic decline.
Falls by brands
Except for Mazda and Ford, which rose 155 and 17 percent, respectively, in June, all the top 10 car brands fell in the sixth month of the year.
Toyota led in sales with 2,315 units, but these contracted 16 percent compared to June 2022. The same happened to Renault, which was in second position by selling 2,042 units; however, there was a 59 percent drop compared to the same period of the previous year.
Sales of brands such as Chevrolet (-49 percent), KIA (-27 percent), Nissan (-37 percent) and Suzuki (-74 percent) also fell. Likewise, those of Volkswagen were reduced by 69 percent and those of Hyundai, another 32 percent.
Regarding premium brands, the first on the list fell: BMW (-5.4 percent), Mercedes-Benz (-39.7 percent) and Audi (-25.5 percent). However, sales of Mini soared (285 percent) and those of Volvo increased (35.4 percent).
By segments and cities
By segments, the car fell 57 percent in June compared to the same period of the previous year; pick up dropped 33 percent; van sales, 13 percent, and taxi, 10 percent.
And by cities, in Bogotá sales fell by 29 percent; in Medellín, 32 percent, and in Barranquilla, 60 percent. Also in Funza the drop was 50 percent in June and in Sabaneta, 78 percent.
On the contrary, vehicle sales will increase 35 percent in the municipality of Villa del Rosario, in the north of Santander, and 12 percent in Envigado, in the south of the Aburrá valley, in the department of Antioquia.
Despite the general decline, in June sales of hybrid electric vehicles (HEV), plug-in hybrid vehicles (PHEV) and fully electric vehicles (BEV) will increase by 35 percent. These reached 2,965 units.
In Bogotá sales fell by 29 percent; in Medellín, 32 percent, and in Barranquilla, 60 percent.
Market challenges
In the first semester, sales totaled 90,869 units, which represents a reduction of 32,980. Given this situation, Andemos projects that by the end of 2023 the market would only reach 198,410 units.
The Opinion Survey of the Automotive Sector carried out by the union reveals that various factors are affecting the performance of the market. The most important are the economic slowdown, the decrease in consumer confidence indices, the exchange rate, prices, inflation, access to credit and interest rates.
According to him union president, oliverio garcia, Another conjunctural factor that has had a negative impact on the sector are the delays in the emission certification procedures (CEPDs), and as of next month the uncertainty about the impact of the entry into force of the technical tire regulation will be added, which has generated a high concern for entrepreneurs.
“The sector contributes 160 billion pesos in chained added values, including 35.5 billion pesos in direct and indirect collections for the State, and generates more than 400,000 direct and indirect jobs only in commerce and industry activities. Therefore, a contraction in sales has negative effects on the entire chain, due to its multiplier impact,” they point out from Andemos.
García also called on the Government to provide support in the paperwork and certification processes with the aim of preventing them from adding to the structural demand problems currently facing the sector.
The sale of new motorcycles also shows a slowdown.
Archive / WEATHER
Motorcycles also fall
The Marketing of new motorcycles also shows a slowdown. In May, the latest data published by Andemos, 58,302 units were sold, which represents a contraction of 16.6 percent compared to the same period of the previous year.
The fall in sales in April was 23 percent; that of March, 18 percent; that of February, 19 percent, and that of January, 9 percent.
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