Colombia | Automotive Outlook 2022

New vehicle sales have tended to stabilize since 2021, with a higher share of utility vehicles, a lower share of cars and strong growth in cargo vehicles. In 2022 and 2023 we estimate sales similar to the 250 thousand units of 2021. Sales of motorcycles and used vehicles have shown great traction.

Key points

• Key points:
• Mobility restrictions, supply problems, input shortages and high costs have affected global vehicle production, which remains below its pre-pandemic levels, putting upward pressure on sector prices.
• In Colombia, output and imports declined in 2020 and have recovered, with respect to that year, but at different rates, with weak production. Vehicle prices have been under upward pressure, mainly since the second half of 2021.
• In 2020, households reduced some of their spending, including on vehicles, which allowed them to save more. These retained savings in 2020, as well as higher incomes due to the recovery of the labor market and credit, boosted vehicle demand in 2021.
• Automobile and utility sales will slow their growth in 2022 and 2023, in line with the behavior of durable consumption. Freight transportation is growing, consolidating its current high sales levels.
• Electric and hybrid vehicles are showing a vigorous dynamic supported by growing demand and continuous economic policy efforts.

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