After a 50% year-on-year fall in new car sales in 2020, Panamanian businessmen expect a 25% increase in the number of units sold in the local market by 2021.

The covid-19 outbreak generated a health and economic crisis that severely affected the automotive industry. The most recent report of the Comptroller General of the Republic specifies that between January and November 2019 and the same period of 2020, the number of new vehicles sold in the Panamanian market decreased 54%, going from 44,101 to 20,349.

Gustavo De Luca, Association of Automobile Distributors of Panama (ADAP), told Laestrella.com.pa “… the covid-19 situation has represented a great challenge for the automotive industry, of which we are still deeply resenting its negative effects. With sadness we lost around 1,000 direct jobs in the industry and suffered a 50% drop in new car sales compared to 2019.”

See “Vehicles: Sales Potential by Brand”

After this abrupt drop in sales, businessmen in the sector expect that in 2021 the sector will start to recover.

The article states that “… Although the pandemic is not yet over, to push the recovery of the economic activity of the automotive industry, for 2021 a market of 30,000 units is projected, which would represent an increase of 25% over 2020.”

Source: laestrella.com.pa

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