Demand in the auto industry is bolstered by the purchase of pick-ups and SUVs, while sedan orders are “practically dead.”
Turbulence in the automotive industry appears to have ceased after nearly four years of crisis with factory delays and cost overruns, so dealers are preparing to sell at least 25,000 new units in the Salvadoran market by the end of 2024.
Do you notice that there will be percentage growth. Not as fast as last year, but it will remain in growth. More or less is estimated at 3 percent versus the previous year’s growth. We should walk through 25,000 units, explained José Roberto Renderos, director of Porsche El Salvador.
The sector experienced a grey season after the covid-19 pandemic due to a global shortage of microchips, which caused a stoppage in the plants of the big manufacturers and increased the cost of each unit.
The disruption of the supply chains was added to the disruption of supply chains and resulted in some manufacturers having waiting lists to deliver new units until 2023.
Renderos said the dealers are up to date with the purchase orders. However, the sector faces some limitations – such as the bottleneck in the Port of Acajutla, in Sonsonate, which has slowed the entry of new cars. “Sometimes the ship comes, they tell him he can’t dock, he’s going to South America,” he said.
Rebound in pick-up and SUV demand
Dealer figures do not include used vehicles, which estimate the entry of four second-hand units imported from the United States for each new car sold.
In the new segment, sales of the sedans are practically dead – while it is the fastest growing item in imported vehicles. However, dealers keep positive numbers on pick-up orders.
Then comes SUVs in new, obviously it’s where there are more options, more brands, more models, more price ranges, from $20,000 to $80,000. Another fort, on the industrial side, is trucks too, Renderos added.
As of July 2024, the vehicle fleet exceeded 1.81 million vehicles, with an annual growth of 4.76 per cent. Of these, 67.3 % corresponds to vehicles and 32.6 % to motorcycles.
The Central Reserve Bank (BCR) reports that vehicle imports exceeded $377.1 million in the first semester, between units for goods, tourism and human transport. This figure increased by $17.4 million (4.8 per cent) compared to the value of the same period in 2023.
This article has been translated after first appearing in Diario El Mundo