AUTOMOTIVE

The automotive industry’s sales numbers in Ecuador have been going up in recent years thanks to FTAs, although more consumer confidence is needed to maintain growth rates in the years to come.

Eduardo Pellegrini CEO, AUTOLIDER ECUADOR

IN 2012, MERCEDES-BENZ decided to name a representative company in Latin America that would provide solidity and the right image to commission business in Ecuador. Autolider, which already accomplished this task in Uruguay with high quality standards, was the option chosen by Daimler to manage its sales and services in Ecuador. After successfully starting in 2014 and overcoming the 2015-2016 crisis in the Ecuadorian automotive industry, we have seen a steady, sustained growth of our sales in all business areas. 2017 marked the revival of the market, supported by the start of the scheduled reduction of tariffs on European products, thanks to an FTA between Ecuador and the EU. Another factor helping the recovery of the market was the greater confidence in the new government, which strongly boosted demand especially in the premium car segment. In 2020, we want to add to our existing networks in Quito, Guayaquil, and Cuenca, larger sales outlets in Guayaquil and new comprehensive networks in Ambato and Manta.

Nicolás Espinosa PRESIDENT, AUTOMOTORES Y ANEXOS SA (AYASA)

AYASA IS A COMPANY that is continuously growing, aiming to expand based on the opportunities offered by the market and country. Ayasa has developed a 2020 Strategic Plan. The opening for the 2020-2025 plan is already happening. The motto "Passion that moves you" is included in the 2020 plan because this is the message that we are trying to send to people. Ayasa’s key to remaining competitive has been the incorporation of new brands such as Foton from China, following the development of the heavy vehicle market in Ecuador. Today, Foton is in the market, and we are the leaders in vans, with 17.3% of segment participation. We want to achieve real numbers in the heavy vehicles market. We have gone from selling 291 units in 2017 to 886 units so far this year. Ayasa incorporated a new business line with the representation of car-rental companies such as Alamo and National. Additionally, we established our Nextcar division, where our clients can access services such as financing or insurance.

Diego Luna GENERAL MANAGER, AUDI ECUADOR

AUDI HAS BEEN IN ECUADOR for 45 years; however, recently the company moved the importer from Miami to Quito. The company has two shareholders, namely the two main dealers in Ecuador: Induwagen in Guayaquil and Ecuawagen in Quito. Regarding the brand at an international level, Audi was not important until 20 years ago, at which point the brand changed its line of production, and cars such as the Audi 80 and 100 ceased to exist. Recently, we launched the Q8 and the e-tron, the first electric SUV from Audi. Audi has started to gain traction in Ecuador and competes strongly with BMW and Daimler. Three years ago, Ecuador removed its quotas. Basically, imports were capped at a certain level. The dollarization, however, has helped us greatly in terms of the capacity of Ecuadorians to make monthly loan payments. We knew that 2019 would be difficult, and we expect the entire sector to sell 130,000 units. We foresee a small fall for 2020.

Genaro Baldeón EXECUTIVE PRESIDENT, ASSOCIATION OF AUTOMOTIVE COMPANIES OF ECUADOR (AEADE)

AEADE REPRESENTS ABOUT 130 COMPANIES that operate across the marketing and services chain of the Ecuadorian automotive sector. It integrates vehicle importing companies, local manufacturing, tires companies, and all vehicle distribution, or retail activities. In addition, we also represent companies that provide replacement products, automotive parts, and related services. Some companies are dedicated solely to after-sales services, and we also cover financing and insurance activities that directly impact the sector. 2017 saw the commercial agreement with the EU go into force and import quotas removed, after which the market grew steadily. In 2019, 132,000 vehicles were sold, 110% more than 2016. Meanwhile, 2018 delivered a tax contribution of USD1.63 billion from the commercialization of vehicles alone. The automotive sector is clearly among the leading contributors to the Ecuadorian treasury. More recently, Ecuador saw renewed interest in trade negotiations with the US.