Last modification: 14 mar 23

Peru is composed of 25 regions and 1 province*. They are Amazonas, Ancash, Apurimac, Arequipa, Ayacucho, Cajamarca, Callao, Cusco, Huancavelica, Huanuco, Ica, Junin, La Libertad, Lambayeque, Lima, Lima*, Loreto, Madre de Dios, Moquegua, Pasco, Piura, Puno, San Martin, Tacna, Tumbes, and Ucayali

Poverty and unemployment levels have fallen dramatically in the last decade, and today Peru boasts one of the best performing economies in Latin America.

Thank you to contributors to the Peru WikiFleet page: BDO: Arval-Relsa

Chapter 1: Economic and business environment


Population 33.9 million people (2022)

Peruvian emigration began rising in the 1980s due to an economic crisis and a violent internal conflict, but outflows have stabilized in the last few years as economic conditions have improved. Nonetheless, more than 2 million Peruvians have emigrated in the last decade, principally to the US, Spain, and Argentina.


7.74 million (city)
10.7 million (urban area)


Major cities

1. Lima (9.87 million)
2. Arequipa (1.26 million)
3. Trujillo (850,230)
4. Chiclayo (799,034)
5.Huancayo (659,300)


Spanish (official) 84.1%, Quechua (official) 13%, Aymara (official) 1.7%,


US$226 billion (2021)
US$6,666 per capita (non adjusted) nominal 


Unemployment rate

8.3% (April 2022)

Source: Trading Economics

Main industries

mining and refining of minerals; steel, metal fabrication; petroleum extraction and refining, natural gas and natural gas liquefaction; fishing and fish processing, cement, glass, textiles, clothing, food processing, beer, soft drinks, rubber, machinery, electrical machinery, chemicals, furniture.

artichokes, asparagus, avocados, blueberries, coffee, cocoa, cotton, sugarcane, rice, potatoes, corn, plantains, grapes, oranges, pineapples, guavas, bananas, apples, lemons, pears, coca, tomatoes, mangoes, barley, medicinal plants, quinoa, palm oil, marigolds, onions, wheat, dry beans; poultry, beef, pork, dairy products; guinea pigs; fish



Peruvian Sol
currency code: PEN

Interest rate

5.5% (June 2022)

Source: Trading Economics

Fleet Maturity Index (scaling)

Approximately 71% of multinational companies in Peru offer company's cars to some of their employees.

Political key info

Pedro Pablo Kuczynski Godard won a very narrow presidential runoff election in June 2016. Facing impeachment after evidence surfaced of his involvement in a vote-buying scandal, President Kuczynski offered his resignation on 21 March 2018. Two days later, First Vice President Martin Alberto Vizcarra Cornejo was sworn in as president.


8.78% (May 2022)

Source: Trading Economics

Chapter 2 : Automotive market, segments & sales

Total Car park

Approximately 2.77 million vehicles (one in 11 inhabitants, est. 2017)

Average vehicle age is 13 years


New vehicle registrations (Cars, LCV, Trucks)

In 2022, a total of 159,814 new light vehicles registrations were reported. (up 1.7% year-over-year), being 44% SUVs, 20% pickups, 15.3% sedans, and 8% hatchbacks.

source: AAP (Peru automobile association)

2,680 electric vehicles were sold in 2022, being 2,048 HEV, 165 BEV, and 107 PHEV.

source: SUNARP

Top 5 brands (total market)

2021 sales

1. Toyota (31,005 units)
2. Hyundai (16,095)
3. Kia (12,035)
4. Chevrolet (11,848)
5. Nissan (8,843)

source: Car Industry Analysis


Model preference top 5 (total market)
  1. Toyota Hilux
  2. Kia Rio
  3. Toyota Yaris
  4. Toyota Etios
  5. Hyundai Accent

Source: AhoraSeguros (2018)

Chapter 3: Company car market

Total Fleet Park (company cars)/Fleet penetration in total fleet sales

553,000 vehicles (approximately 20% of the country's total car park)

  • Of this amount, about 12,200 vehicles (2% of the corporate car park) entail operational leasing contracts.
  • Most of the country's company cars are for utility purposes, as opposed to benefit cars for executives.  

Source: Arval-Relsa

In Peru, approximately 71% of the multinational companies in the country offer company cars or vehicle benefits for employees, according to a 2020 Global Fleet study done in partnership with Willis Towers Watson.

Evolution fleet sales (last 5 years)

In 2021, LCV sales rose 51% to 41,420 units from 27,503 (source: OICA)

2020: 27,503 units
2019: 40,266 units 
2018: 36,349 units
017: 46,718 units

Top 5 fleet brands (fleet market)

National statistics are yet to be acquired.

However, for multinational vehicle leasing group Arval-Relsa
1. Toyota
2. Nissan 
3. Renault

Fleet Model preference top 5 (fleet market)

National statistics are yet to be acquired.

However, for multinational vehicle leasing group Arval-Relsa, the most requested models are the Toyota Hilux pickup, Mitsubishi L200 pickup, and Chevrolet N300 van.

Chapter 4: Taxation & legislation


The basis of Company Car taxation in Perú is reflected in this overview. Different types of taxes are considered here: taxes related to the registration of the vehicle, income taxes and VAT aspects. Expected future developments are also briefly listed, if any.

  1. Car taxation: Vehicle property tax
  • Taxable event


Vehicles: cars, vans, station wagons, trucks and buses not older than three years (Period counted from the first registration in the Vehicle Property Registry)

  • Taxable person

OWNER (individual or entity) on 1 January of every taxable year

  • Tax due

1% x the Vehicle’s original purchase value, import value or value registered on books

  • Taxable period


  1. Income tax
  • Income tax for car industry

Taxable Income x 29.5%

  • Deduction of car expenses (rental, leasing, leasing, fuel, lubricants, maintenance, insurance, repair, amortization, etc.)

Permitted when they are used in permanent way for the development of the business.

  • Accelerated asset amortization – Cars acquired by Leasing

Accelerated amortization on the leasing contract period, under special requisites.

  1. VAT
  • VAT applicable

(Car import/ car sale/car lease value) x 18%

  • Deduction

VAT payable = Output VAT – Input VAT

Enterprises recognized as general taxpayers are entitled to use the input tax to credit against the output tax.

Output VAT = sales value*applicable tax rate

Input VAT = purchase value*applicable tax rate

  • Leasing

Taxable as financial service: Leasing interests x 18%

  1. Excise tax
  • Excise tax applicable

Vehicles import/ vehicles sale (by importer), included in the following NANDINA Tariff item numbers:

8703.31.10.00/ 8703.90.00.90

8704.21.10.10- 8704.31.10.10

8704.21.10.90- 8704.21.90.00

8704.31.10.90- 8704.31.90.00

Import: value+duty X 10%

Car sale: value x 10%


8702.10.10.00/ 8702.90.99.90

8703.10.00.00/ 8703.90.00.90

8706.00.10.00/ 8706.00.90.00

8704.21.00.10/ 8704.90.00.00

8707.10.00.00/ 8707.90.90.00

Import: value+duty X 30%

Car sale: value x 30%


  1. Company Car
  • VAT Due on private use of company cars


  • Company car

Limited deduction for cars of categories A2, A3, A4, B1.3 and B1.4, assigned to use on Management, Direction, Representation or administration activities:

- Limited number of vehicles depending on annual income.

- Non permitted deduction when vehicle purchase value is over 30 Tax Units (2018 Tax Unit = PEN 4150)

Company car provided for private use of employee is taxable for employee, as part of work income.

  1. Income Taxes – drivers’ personal taxation
  • Private car in the personal tax return

- Expenses deductible by driver if he assumes the expenses, and driver’s income qualifies as business income.

- Expenses not deductible on driver´s personal tax return if cost are assumed directly by Company. Duly supported, deduction is allowed to the Company (with limits settled on point 5).

  1. Import duties

Vehicles subject to duties

Included on NANDINA tariff item Code 87.03 “Passenger cars and other motor vehicles principally designed for the transport of persons (other than those of heading 8702), including station wagons ( "break" or "station wagon") and racing”

Tax application

CIF x 6%

Source: BDO (2018)

Meanwhile, owing to a 10% increase of the ISC selective tax on consumption determined by the ministry of economy and finance, the price of new passenger vehicles operating on gasoline in Peru is seen increasing some 12% on into the second semester of 2018, something that will affect upcoming fleet renewal decisions. Source: Peru's automotive association AAP.

Chapter 5: Car policies

Corporate cars in Peru pertain more to vehicles used for utility purposes as opposed to benefit cars for company executives.

Utility vehicles, or those used to support company operations, commonly involve pickups and vans. They are mostly used by on-site workers, technicians, construction supervisors, among others.

Benefit vehicles such as sedans, hatchbacks, and SUVs are mainly used by salespeople, managers, directors, and other executives. Usually, the higher the job position, the more exclusive the vehicle is. 

Sometimes, the vehicle could be used for personal use but it really depends on the policy of each client. To monitor whether the driver is using the vehicle for business or personal use, tools such as GPS can be used. To better manage fleets, it is ideal for leasing companies to have a central communication center which directs phone calls to the appropriate department needed.   

For Arval-Resla

  • Traffic accidents are handled directly with insurance companies
  • In the case of vehicle maintenance or if the car breaks down, customers contact the central office to request service.
  • Traffic ticket fines, however, are managed internally. Once recieved, customers are informed. 

Chapter 6: Funding methods

Approximately half of the cars in Peru are bought in cash while the rest are acquired through bank loans, special financing or leasing. 

Chapter 7: Fuel

3 May, 2021
Average gasoline price per liter: US$1.00 (world average is US$1.15)
Average diesel price per liter: US$0.94 (world average is US$1.02)

September, 2020
Average electricity price per kWh Households: US$0.19 (world average is US$0.14)
Average electricity price per kWh Business: US$0.13 (world average is US$0.12)



  • Gasoline in Peru is mixed with up to 7.8% ethanol.
  • Pushing for the import of cars using natural gas by reducing ISC tax to 10% from 30%.
  • To push for the reduction of gasoline vehicles, there is 0% ISC tax on electric vehicles.

Chapter 8 : TCO components

Traveling by personal car to and from work in Lima costs an average of 238 Peruvian sols (US$73) per week, while using other means of transport cost 40 sols on average, nearly five times less. The former (private car) includes the cost of maintenance, insurance, fuel, parking, etc. 

Traffic is one of the reasons why traveling in your own car can get expensive. Besides fuel consumption increasing every time you sit in a traffic jam, road congestion increases wear and tear on vehicle parts. This, in turn, results in more maintenance and a shorter life for your vehicle.

Average weekly public transportation cost in Lima
minibus: 30 sols
bus: 39 sols
motorcyle: 55 sols
taxi: 57 sols
mototaxi: 66 sols

Source: Study carried out by the Pacifico University graduate school and consultancy firm Marketwin called "Tráfico y Tendencias de la Movilidad Urbana en los Limeños" (Traffic and tendencies of Urban Mobility in Lima). 


Chapter 9: Safety, insurance and telematics


Safety regulation is not very strict in Peru. According to the transport and communication ministry, among the features needed on cars are very basic (e.g. bumpers, windows, and brakes).

Most robbed car brands

  • Toyota
  • Nissan
  • Hyundai
  • Kia
  • Chevrolet
  • Volkswagen 


Approximatly 23% of the cars in Peru have insured, and about 70% of drivers have the SOAT obligatory insurance for bodily injury

SOAT covers all persons who are victims of a traffic accident (driver, vehicle occupants and pedestrians). It is very complete as there is no limit as to the number of victims in an accident. However, there are various types of vehicle insurance. While getting protection which includes bodily injury, collision, and theft can give you peace of mind, opening up a policy for only bodily injury and protection only in the case of a total loss could pose some high risks.

Cheapest models to insure:

  • Suzuki Alto 800
  • Chery New QQ
  • Chevrolet Spark
  • Volkswagen UP
  • KIA Picanto
  • JAC J4
  • Hyundai i10
  • MG 3.


All vehicles in Peru in the road transport and distribution industry are required by law to report their GPS location to the SUTRAN monitoring and management center. The law is mostly aimed at preventing heavy vehicles from exceeding national speed limits and helping to reduce the high incidents of road accidents in Peru. 

Companies that provide fleet control software are required to transmit the following vehicle data to SUTRAN.

  • Vehicle Registration
  • Routes Traveled
  • Speed
  • Geolocation (Latitude and Longitude)  

Approximately 82% of Peruvians drive their vehicles below the minimum standard of what is considered to be good driving, according to a study called "Driving Style" carried out by road safety company Tracklink. 

This minimum standard of good driving considers having a 9% frequency of accidents, which is the maximum percentage "acceptable" in the European Union. In the case of Peru, this number is above 40%. Moreover, on a 0-100 scale with 100 being best, 82% of drivers in Peru failed to reach the 55-point minimum considered to be acceptable driving.  The average score in Peru was 38.3.



Chapter 10: Environment

Tax incentives related to the purchase and circulation of vehicles as well as tollbooth and parking fees could be more robust and are still in the works.

However, since April 2018, Peru's environment ministry has set a Euro IV standard for imported vehicles, meaning that they must have modern emission control systems that reduce the emission of harmful gases into the atmosphere. Moreover, to jump-start hybrid and electric vehicle (EV) sales in 2019, the ministry of energy and mining will award bonuses to individuals or companies acquiring these types of vehicles. The ministry of economy and finance has also passed a decree which eliminates the ISC excise tax for those renewing their car parks with hybrids or EVs.

According to local reports, about 90% of Peruvians are interested in buying these types of cars. However, neither the commercial offer of EVs nor the necessary infrastructure for these types of vehicles is sufficient enough to really take advantage of tax breaks. Not only until 2022 or later will we see automakers really start bringing EVs into the market. Initially, they will be focusing on the luxury market, corporate cars, and passenger transport.

Part of the government’s 2019-30 national competitiveness and productivity plan, the regulations set subsequent electromobility milestones aimed at decentralizing pilot projects by 2021, setting technical standards for charging stations by 2025, and plans to have electric buses operating in Lima, Arequipa and Trujillo by 2030.

Electric Vehicles

The sale of electrified vehicles (BEV, HEV, and PHEV) reached 1,455 units in 2021, up 160% year-over-year. This still only represents 1% of the 157,100 vehicles sold in the country, according to local automotive association AAP. Although Peru still imposes an 18% tax on new vehicles, it is considering a reduction of import tax on EVs. This decision should be made by March 2022. 

If passed, Peru would be following in the footsteps of neighboring Bolivia. The country eliminated taxes on BEVs and HEVs in July 2021, and this includes taxes on the components required to assemble them. In the meantime, companies linked to the local energy sector are seeking long-term regulatory changes and public-private partnerships aimed at harmonizing the basic fundamentals of the industry, including aspects such as developing a standard connection for vehicles wanting to recharge on the electricity grid.

Chapter 11: Mobility

Peru loses 5.5% of GDP due to mobility problems: 1.5% in accidents, 1.5% in health, 1.5% in lost time and 1% on fuel.

  • In Lima, about 16% of its residents use their own cars to get to and from work.
  • Approximately 57% of residents in Lima spend more than two hours a day traveling back and forth to work.
  • As such, 8% of the residents in the city have moved closer to their work or place of study to reduce the time and cost of commuting.

To resolve traffic congestion, one thing Peru is trying to do is stimulate the usage of bike sharing systems, something that is lacking in the country.

In February 2017, the Urgente Pedal (Urgent Pedal) pact was signed in Lima, a commitment to contribute to sustainable mobility by promoting the use of bicycles for workers, customers and suppliers. Within one week after the launch of the proposal, nine entities and business groups signed the pact.

However, according to to a study on traffic in the metropolitan region of Lima carried out by consultancy company Marketwin in September 2017, only 2% of the population in the city would be willing to replace their car with a bicycle or non-motorized vehicle.



Chapter 12: Key trends to watch