- Language: English
- Published: July 2012
- Region: Peru
Peru Autos Report 2012
- Published: February 2012
- Region: Peru
- 32 Pages
- Business Monitor International
Business Monitor International's Peru Autos Report provides industry professionals and strategists, corporate analysts, auto associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Peru's automotive industry.
Peru is showing signs of becoming one of the most promising auto growth markets in Latin America, thanks to impending regulations, free trade agreements with major markets and low vehicle ownership levels. Vehicle demand is also being supported by a favourable consumer profile and the improved availability of vehicle financing, which helped new car sales grow a robust 24% year-on-year (y-o-y), to 136,048 units, between January and November 2011, according to estimates from the Peruvian Association of Automotive Representatives (Araper). In 2012 we expect continued consumer confidence, the government's expansionary fiscal stance and its attempts to renewal the national vehicle fleet to help sales grow by an impressive 22%, to 180,072 units.
More support to new vehicle sales will come from the government’s attempts to curb the used car market, particularly imported used cars. To that end, in November 2011, the Ministry of Transport and Communication unveiled its bonus chatarreo, or fleet renewal programme, in an attempt to reduce the average fleet age, which currently stands at 17 years. Although the scheme is yet to be implemented, measures to impose a maximum age for used imported cars or increased taxes on the least efficient imported cars could help the new vehicle market attract more buyers.
In the longer term we expect a growing number of infrastructure projects and private sector investment to help drive sales, particularly in the commercial vehicle segment. We accordingly forecast an average growth of nearly 14% each year for the remainder of our forecast period, to 2016.
However, Peru’s rush towards free trade agreements with Asian countries is heating up competition among Asian carmakers. Toyota Motor has seen its market domination being challenged by South Korea’s Hyundai Motor, which is currently the second most popular carmaker in Peru. Toyota had 16.5% market share during the first eleven months of 2011 while Hyundai cornered a 13.5% market share during the same period. Both companies are benefiting from the FTAs their respective governments have signed with Peru. Meanwhile, the Chinese carmakers have also been able to increase their presence in the market, thanks an FTA signed between China and Peru in March 2010. There are as many as 96 Chinese brands currently operating in Peru, with Chery Automobile, Geely Automobile and Great Wall Motors being the most popular names.
Peru's business environment has undergone remarkable progress, with the country's legal framework increasingly capable of processing growing outside interest in the economy. Such high-profile FTAs should further boost Peru's overall business environment. However, owing to the small size of its autos market and the lack of a domestic manufacturing segment, Peru ranks 8th in BMI’s risk/reward ratings for the autos industry in the Americas, faring only slightly better than Venezuela. SHOW LESS READ MORE >
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How We Generate Our Industry Forecasts
- Toyota Motor
- Hyundai Motor