Tuesday, October 3, 2023

Prices for cars “made in Europe” have fallen by 37%; These are the best-selling models

The current trade agreement between Ecuador and the European Union encourages brands from South Korea, Japan and the United States to introduce models manufactured in their factories in the European bloc.

The Ecuadorians bought more cars made in Europe between January and August 2023.

And that’s how it happened Sales of these vehicles increased by 20.5% compared to the same period in 2022, according to data from the Chamber of the Ecuadorian Automotive Industry (Cinae).

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However, of the 6,629 “made in Europe” vehicles that came to Ecuador, only 34% correspond to traditional European brands gathered on the same continent.

And that 66% left corresponds to vehicles assembled in Factories in Europe but brands other origins, especially Asia explains Cinae’s managing director, David Molina.

Hence this Car made in Europe which is one of the 15 Bestseller in Ecuador It is from a South Korean brand: the Kia Sportage SUV model.

The trade agreement is bearing fruit

He Trade agreement between Ecuador and the European Union in force since 2017, has encouraged Brands from South Korea, Japan and the United States Especially those who have assembly plants in Europe are brought to Ecuador every time Other models were manufactured on the old continent.

They do it for Benefit from the tariff reduction and have more competitive prices, adds Molina.

In 2023, the seventh year of the trade agreement, this will happen Tariffs for light vehicles which come from this commercial block Depending on the model and displacement between 1.3% and 5%.

Y in 2024 this Cars now have a 0% tariff so the market will continue to grow.

The average prices of vehicles originally from European brands such as Peugeot or Renault have recorded a decrease of 14% in their average prices since the agreement came into force.

But if this number also includes non-European brands that gather in the bloc, such as Kia and others, then that is the case Price decline reaches 37% in total.

It is explained by Genaro Baldeón, executive president of the Association of Automobile Companies of Ecuador (Aeade).

Although buyers know that the brands come from countries outside the Union, the fact that it is the vehicle is not clear Assembled in this European area is usually a catch.

“People associate Europe with prestigious products“ explains Molina.

With more competitive prices, Asian and US brands have made this possible thanks to the trade agreement with the European Union Cars “made in Europe” deserve more Weight in total sales in Ecuador.

Según Cinae, la Market share of vehicles of European and non-European brands assembled on this continent between January and August 2022 was 6.4% and Growth to 7.2% in 2023.

read traditionally European brands They also assemble their models in other countries outside the continent, such as: Mexico, Brazil and Argentina.

Baldeón clarifies that European brands benefit from the tariff reduction even if the cars are not assembled on this continent.

Cars made in Europe with Asian DNA

When analyzed by origin, it was found that most cars from the European Union were manufactured in Plants from Slovakia from Czech Republic and Hungary, in Central Europe. follows you Cars assembled in Spain.

These are the non-European brands that bring the most cars assembled in European factories to Ecuador:

  1. Kia, from South Korea.
  2. Hyundai from South Korea.
  3. Suzuki, from Japan.
  4. Toyota, from Japan.
  5. Ford, from the United States.

On the other hand, among the traditional European brands present on this continent, the French brands Peugeot and Citroën are the best sellers in Ecuador. Together they account for 17.2% of sales.

More European models and competitive prices

But Trade agreement was also encouraging European brands are bringing more models and also lower their prices explains Baldeon.

After Signing of the trade agreement Brands like Jaguar, Opel, DAF and Iveco, DS, Lotus which allowed us to diversify the available offering, he adds.

113 vehicle brands are sold in Ecuador, 29 of which are European.

The brands The French gained the most space according to Aeade, has increased in the Ecuadorian market in recent years.

The brands there sold around 2,025 units between January and August 2017. However, during the same period in 2023, sales increased to 4,761 vehicles The leading French brands include Renault, Citroën, Peugeot and DS.

Germany also recorded growth important. Sales rose from 1,499 vehicles between January and August 2017 to 3,226 units in the same period in 2023.

This country competes in Ecuador with brands like Volkswagen, Mercedes Benz, BMW, Audi, Porsche, Man and Opel.

Nation World News Desk
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