New car sales rising but far from pre-pandemic

New car sales are recovering faster than the industry expected, but are a long way from pre-pandemic levels.

In the month of August  24,731 units have been sold, which represents a growth of 98% compared to the  the12,467 units sold in 2020, according to the figures from Panama the Association of Automobile Dealers (Adap).

The strong growth is due to the fact that sales in April, May, and part of June 2020 were almost nil because dealers were not operating due to mandatory closures said Anthony Salerno, president of Adap.

When the accumulated figures up to August 2021 are compared with the same period in 2019, sales reflect a decrease of 21%. The monthly average for this year is about 3,100 vehicles, down from the nearly 4,000 registered two years ago.

“We are still far from pre-pandemic figures, which is understandable, but if we bet on the economic reactivation and, to a large extent, the reactivation of jobs, we can see the recovery of the sector with more optimistic lights,” he said.

Salerno said that the goal at the beginning of 2021 was to exceed 30,000 units, but “due to the demand perceived in recent months, we are confident of reaching a market of more than 36,000 units of new cars sold.”

Everything will depend, however, on the challenge facing the sector, with reduced inventory levels due to global limitations to the supply chain and logistical complications, factors that put pressure on prices, he explained.

From a marketing point of view, the sector has adapted to the new requirements imposed by the pandemic and has been holding virtual fairs, in which users can find products, financing offers, and car insurance in a digital market.

Salerno also referred to the role that banks play in this sector, both to finance dealer operations and to purchase vehicles from customers. “The activation of consumption and its financing will be important players in the speed of recovery of our economy,” he said