Sales of New Cars in Ecuador Dropped by 18.2% in 2024

New car sales in Ecuador saw a significant drop in 2024, with only 108,266 units sold—an 18.2% decrease compared to 2023, according to the annual report from the Association of Automotive Companies of Ecuador (AEADE).

This marks the second consecutive year of decline. In 2022, 134,170 new vehicles were sold, followed by 132,388 in 2023. By December 2024, only 8,701 new cars were sold, representing a 2.2% decrease compared to December 2020, the year of the pandemic.

While sales rebounded in December 2021 and 2022 with 10,145 and 11,393 units sold, respectively, the numbers dropped again in 2023 to 9,053 and fell further in 2024 to 8,701.

Breakdown of Vehicle Sales

- Light Vehicles: In 2024, sales reached 98,042 units, a 19.5% drop from 121,736 in 2023.

- Heavy Vehicles: Sales also declined slightly, with 10,224 units sold in 2024 compared to 10,652 in 2023—a reduction of 4%.

Hybrid Cars Buck the Trend

Amid the overall decline, hybrid vehicles (those with both electric and combustion engines) performed exceptionally well. Sales surged to 12,726 units in 2024—12 times the amount sold in 2020. Hybrid vehicles were the only segment to grow, with a 21.8% increase in sales compared to the previous year.

Electric Vehicles Struggle

In contrast, the electric vehicle market contracted. In 2024, 1,778 electric cars were sold—a 2.5% decrease compared to the 1,823 units sold in 2023.

Factors Impacting Sales

Genaro Baldeón, executive president of AEADE, attributed the decline in new car sales to several factors, including the uncertainty surrounding the presidential elections, security concerns, and an energy crisis, all of which dampened consumer confidence. “Additionally, there was a contraction in credit,” he added.

While most of the automotive market faced challenges in 2024, hybrid vehicles stood out as a rare bright spot in an otherwise tough year.

Source: El Mercurio.