Gloria Camargo
The Colombian automotive sector continues to face a sharp slowdown, according to data from the Single National Traffic Registry (Runt) and calculations made by the National Association for Sustainable Mobility (Andemos). During the month of June, vehicle registrations experienced a significant drop of 38.1% compared to the same month of the previous year, which represents the largest monthly decrease so far this year.
In June this year, 14,435 units of new vehicles were registered, as opposed to 23,323 units registered in the same period last year. Unlike other Latin American countries, where new vehicle registrations have shown positive behavior in the first months of the year, Colombia and Chile face a negative outlook in terms of volume.
This downward trend in vehicle registrations has been maintained since August 2022, and for the first half of 2023 a 26.6% drop has already been consolidated with a total of 90,869 units, which represents a reduction of 32,980 units compared to the first half of the previous year.
According to the seasonal analysis carried out by Andemos, using figures from the first semester, it is projected that the vehicle market at the end of 2023 will reach 198,410 units. However, the last 12 months have shown an atypical behavior in relation to seasonality, which suggests the possibility that the figures at the end of the year will be below 190,000 units.
The Opinion Survey of the Automotive Sector carried out by Andemos reveals that several factors are affecting the performance of the market. These include the economic slowdown, the decrease in consumer confidence indices, the exchange rate, prices, inflation, access to credit and interest rates.
In addition, the delays in the emission certification procedures (CEPDs) and the uncertainty about the impact of the entry into force of the technical regulation for tires starting next month have also had a negative impact on the sector, generating concern among businessmen. of the sector.
It is important to highlight that the automotive sector plays a fundamental role in the Colombian economy. According to a study presented by Andemos in 2022, it 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 in trade activities alone. and industry. Therefore, a contraction in sales has negative effects on the entire chain of related activities, due to its multiplier impact on chained value added, employment and state revenue.