Ecuador Autos Report - Business Monitor International - Industry Reports

Ecuador Autos Report

Ecuador Autos Report - Business Monitor International - Industry Reports
Ecuador Autos Report
Published Aug 06, 2016
36 pages — Published Aug 06, 2016
Price US$ 1,295.00  |  Buy this Report Now

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� Business Monitor International Ltd Page - maintain its quota of USD---mn for the import of completely built-up units (CBUs), CKDs and auto parts. The trade restrictions differ from the ---- quotas in that only USD---mn worth of CBUs may be imported representing a -- decline from ----. The remaining quota amount is reserved for the import of CKD vehicle kits and CKD chassis kits and components. While locally assembled vehicles have made up an increasing percentage of total new cars sold over the last -- years, imports still accounted for --.- of new cars sold in ----, down from --.- the previous year. As a result, the continuation of import restrictions will still drastically limit the supply of new vehicles to market compared to pre----- levels, which will keep overall sales volumes low. ...Furthermore, since many of the biggest importers of CBUs also conduct assembly operations, the added uncertainty around inventory management may also negatively impact their production plans. The result will be increased supply bottlenecks for the market in general and a mismatch of vehicle supply and demand.

...Although import quotas will create strong supply constraints, the main factor driving autos sales into negative territory will be the general shrinking of economic activity in the country. The April ---- earthquake in Ecuador will add to the headwinds facing the oil-dependent Ecuadorian economy. ...The April ---- earthquake in Ecuador will add to the headwinds facing the oil-dependent Ecuadorian economy. Our Country Risk team expects the earthquake which struck Ecuador in the middle of April ---- to create new pressures on the government s fiscal accounts and send gross fixed capital formation even lower as investors pull out capital in the wake of the tragedy. In addition, as low oil prices become standard for the global oil industry in ---- and remain so up to ----, Ecuador s undiversified, oil-exporting economy is expected to grow considerably slower than pre----- rates. Our Country Risk team have revised down their real GDP growth forecast for ---- to a decline of --.- from their previous forecast of a -.- contraction.

...Worsening trade balance due to the oil price collapse will mean import restrictions are maintained over ----, leading to further vehicle production and sales declines. The April ---- earthquake will add to the country s economic woes and this will further drag on consumer and business confidence, leading to a fall in spending on big-ticket purchases. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Ecuador Autos Report" Aug 06, 2016. Alacra Store. Jun 20, 2018. <>
Business Monitor International - Industry Reports. (2016). Ecuador Autos Report Aug 06, 2016. New York, NY: Alacra Store. Retrieved Jun 20, 2018 from <>
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