National car sales show little growth
Car dealers are blaming national tariffs and import quotas on continuing slow sales. In the first nine months of 2014, sales grew only 1.31%.
The president of the Association of Automobile Companies, Diego Luna, says that growth in the years prior to the tariff and import quotas imposed in 2012, averaged 11%. He says he expects growth to remain flat for the rest of 2014 and for 2015.
Luna says that the trade agreement between the European Union and Ecuador will provide some relief when it goes into affect in 2016. “Currently, European cars represent only 2% of the market and that should go up when the tariffs and quotas are removed.” He adds: “The problem is that European cars are more expensive than those made in Asia, which make up most of Ecuador’s car and light truck sales, so increased sales of European models will not restore sales to pre-2012 levels.”