7 Jun 21

Wikifleet Andes update: What's happening in Chile, Peru, Ecuador?

Although Chile saw a 30% drop in overall vehicles sales to 258,835 units last year, the country's commercial vehicle market -including pickups- was hit to a lesser extent, and according to some of the latest Wikifleet updates on the country, the 2021 forecast looks even better.

Have a look at the State of the Latin American fleet market, a session presented by Fleet LatAm expert Pascal Serres, recorded at the 2021 Global Fleet Conference.

Compared to the overall market, sales of the Toyota Hilux pickup last year only fell 16.5% year-over-year and the country's best-selling Mitsubishi L200 pickup also fared better than the overall market. 

In terms of alternative fuels, the use of diesel vehicles is popular for some corporate fleets as it is approximately 30% cheaper in the country. On 31 May, gasoline averaged US$1.28 per liter while diesel was priced at US$0.88. 

Meawnwhile, approximately 0.8% of new vehicle sales in the country are electrified vehicles. Although Chile has long term plans such as electrifying 100% of public transport and 40% of private transport by 2050, the country does not have a firm short-to-mid term strategy on electric mobility.

However, to support the commercial market, the Chilean tax system does offer fiscal benefits for light commercial vehicles (LCV). While trucks and vans are considered tax deductible expenses for companies, other types of vehicles receive much less benefits, fiscally speaking. 

Some of the most popular LCVs in the country are the Hyundai Porter and Kia Frontier, both with some 1,700k cargo capacity.  

Hyundai Porter II Freezer trucks (copyright: Hyundai)

As for 2021 forecasts, new light vehicle sales this year are expected to increase by some 38% to more than 356,000 units, contributing to the 5 million or so in light vehicles seen in the country today. The largest leasing and car rental companies in the country are local firm Mitta with 17,000 vehicles (up 30.8% in 2020), followed by Europcar-Tattersall with 13,000 units (up 62.5%). 

Approximately 66% of multinational companies in Chile are offering car benefits to its employees. 

Considering some of the latest news in the country, we'd like to point out that multinational leasing company Arval (in 1Q21) appointed Luc Soriau as its new General Manager in Latin America. Besides Chile, he now heads operations in Brazil, Peru and Colombia. 
Peru and Ecuador 
To compliment the Andes region, we'd like to highlight a few updates on the Peru and Ecuador Wikifleet pages, mainly those related to electrification. 

In Peru, governments have partially implemented tax breaks on EV purchases. Meanwhile, other incentives such as lower fees at tollbooths and parking facilities as well as EV related services are underway. 

So far this year, the fleet of Arval-Relsa in the country increased by 50 vehicles to 5,850 units and ALD Automotive's fleet rose by 500 vehicles to 2,500 units. According to Wikifleet Peru, approximately 71% of the multinational companies in the country are offering some type of car benefit to their employees. 

As for Ecuador, incentives to push EVs are a bit better. Besides a government mandate on the exemption or reduction of vehicle import taxes on these types of vehicles, breaks are also given on the purchase of EVs. Vehicle owners also receive other benefits such as lower fees at tollbooths, parking facilities, and related services. 

The leading vehicle leasing and car rental company in Ecuador is Mareauto AVIS.

For more information on these countries and others, visit Wikifleet, a collaborative effort by the Global Fleet team covering five regions and nearly 50 countries around the world. 

Authored by: Daniel Bland