Peru push for better mobility
Composed of 25 regions and one province, the economy for Peru (and its 31mn inhabitants) has been improving in recent years. Poverty and unemployment levels have fallen dramatically in the last decade and the country actually boasted one of the best performing economies in Latin America in 2018.
Its capital city Lima has approximately 9.87mn residents and the country has a non-adjusted GDP per capita of US$6,774.
Peru's GDP would be better if it weren't for the country's mobility constraints. According to Global Fleet's Wikifleet page on Peru, some 5.5% of the country's GDP is loss as a result of these problems, being 1.5% from accidents, 1.5% from health-related issues, 1.5% from lost time, and 1% from fuel costs.
Much of this stems from long home-to-work commute time. In Lima, approximately 16% of its population commute to work with cars, and about 57% of them spend more than two hours a day on this commute.
As such, residents and businesses alike have been working toward improving the situation. To reduce the time and the cost of commuting, nearly 10% of inhabitants have been relocating closer to their place of work or study.
Businesses, moreover, have been coming together to resolve traffic congestion by stimulating the use of bike sharing systems by workers, customers, and suppliers, through the country's Urgente Pedal (Urgent Pedal) pact which was signed by several companies in 2017.
bikes in Lima, Peru (source: Shutterstock)
Regarding the automobile industry, the country has approximately 2.77mn vehicles in all (one in 11 inhabitants), with the average age of vehicles being 13 years. Some 553,000 corporate cars are present in the country, or about 20% of the total car park.
In the latest full-year report (2017), car sales rose nearly 10% year-over-year to 180,281 units but sales were pointing downward in the second semester of 2018. The drop was impacted by an increase of the selective consumption tax ISC on new gasoline vehicles which rose to 10% from 0% last year.
According to the report, the best-selling brands are from Asia, being Toyota selling 39,703 units (17.5% of market share) in 2017, Hyundai selling 27,396 units (15.2%), and Kia selling 20,525 units (11.4%). Among the best-selling vehicles in the country are the Toyota Yaris and Kia Rio compact cars, as well as the Toyota Hilux pickup.