Guatemala vehicles market in 2020 reported a sharp drop in sales in Q2, but has recovered effectively in the last month despite COVID-19 infections remaining stable. Indeed, 2.193 units have been sold in September (+7.5%), leading Year to Date sales at 15.086 units (-18.5%).
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 Year to Date
After the heavy drop reported in Q2 this year, the Guatemalan car market has significantly recovered in the past few months even reporting some growth, in fact in September 2.193 units were sold (+7.5%), leading Year to Date sales still at an 18.5% drop with 15.086 units sold.
Brand-wise, Toyota remains the leader, holding 26.1% market share, followed in the distance by Kia with 14.6% share and Hyundai with 13.8%.
Medium-Term Market Trend
Guatemala’s vehicles 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%.
In Q1 2020 6.170 units were sold, illustrating a stable market (-0.6%), but the situation quickly degenerated in Q2, leading First Half sales at 9.183 units, a 25.7% decrease in sales.
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Tables with sales figures
In the tables below we report sales for the Top 10 Brands
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