The Colombian automotive market in 2006

The Colombian automotive industry has enjoyed a bumper year for sales so far in 2006. Robust results, including a 44.8% increase in new vehicle sales, have led the report to raise its sales forecast for the year and the remaining forecast period up to 2010 in the Colombia Automotives Report. Recent industry data show that in August, vehicle sales in the country totalled 18,081 units. The analysis group Econometría puts this figure 14% above sales reported in July. In the period January - August new vehicle sales totalled 120,385 units. Industry representatives are unanimous in predicting sales of 185,000 for the year, surpassing previous records. The report remains rather more cautious, however, despite the industry optimism, expecting a slightly lower 180,000 units to be sold this year.

The report believes the health of the Colombian market and growing consumer confidence may be seen in the country's fledgling premium brand market. In line with industry data, more and more Colombians are opting to buy luxury vehicles. Toyota, for example, has reported a 329% increase in demand for its Rav4 vehicles, while sales of its 4Runner are up by 13%. The growth of this market is attributed to better credit facilities and favourable interest rates.

Kia Motors is one of the manufacturers bidding to tap Colombia's premium market with the launch of four new products scheduled for 2007. Kia currently has a 2.9% share of the Colombian market and is eyeing a 5% stake in 2007. BMI places Colombia in second place in its business environment ranking given that vehicle ownership is below average for the region. There would also certainly seem to be significant scope for growth for manufacturers in the luxury niche.