Guatemala vehicle fleet on the rise, but why?
Guatemala’s vehicle park has been growing at a steady pace recently, increasing to some 3.76 million units (passenger cars, trucks, and motorcycles) at the start of 2019.
Although much of this is due to a 13% increase in motorcycles to 1.5 million units, the increase in the automobile park is highly attributed to used car imports.
Despite importing cars more than 10 years old is not permitted, it is not really enforced. As such, many cars considered scrap metal or banned due to their high levels of pollution are being brought into the country from the United States, negatively impacting Guatemala's own remarketing industry.
In 2018, approximately 62% of the car park in Guatemala was more than 10 years old. These cars, however, are targeted for individuals who usually have lower incomes, and this is something that does not really pertain to the age of the corporate fleet market, according to Fleet LatAm Advisory Board Member Mirella Juarez.
“Our corporate cars are quite new. The companies we work with usually sign new car leasing agreements of 5-7 years, so they are all less than 10 years old,” says Ms. Juarez who is the CEO of local automobile leasing company Arrend Leasing.
Mirella Juarez (source: Arrend Leasing)
Guatemala is composed of 22 departments which are home to approximately 16.9 million people, most of which are residing in the southern half of the country, particularly in the mountainous regions and more than half of them in rural areas.
With an estimated GDP of US$75.6 billion, GDP per capita equates to some US$4,473 in the country without calculating purchasing parity. Approximately one in 4.5 people have a car.
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