Global Courant 2023-05-01 16:00:44
Luis Pedro Martínez-Mont, brand manager of Toyota Guatemala, reviewed for Prensa Libre how the automotive sector is doing, the numbers and balance sheets, the different macroeconomic variables, the problems that some manufacturers have solved after the pandemic and how they overcome the international logistics situation.
In general terms, how is the automotive market in Guatemala analyzed in 2023 and 2024?
We come in an abysmal growing position; no growth had been observed since 2021 and in the first months of this year, demand has been quite strong.
We continue to have problems with the supply of vehicles by the factories, although it has already improved to a certain extent; The shortage continues in some lines and in our case, such as the Hilux, Prado or Rav 4. Competitors have also had some inventory limitations. So, the waiting time for some models is a little longer than usual, but we see the light at the end of the road and we believe that by next year we will have a level stock.
What is your analysis of national macroeconomic performance?
Guatemala is one of the most beneficiary countries in all of Latin America, and we really did not have such strong restrictions during the pandemic and that helped us a lot; there is the increase in family remittances that have risen each year, which is something positive; exports are fine; tax collection is also very good, a healthy banking system and the exchange rate does not fluctuate as much as in other countries. All this gives us stability to plan better.
It refers to double-digit growth rates…
Yes, double digit from 2020 to 2021; from 2021 to 2022 it is the same trend and so far in the first quarter as well. The month of March was historic in sales.
There were some problems in the general production chain, what is the vision?
The logistics issue is already quite normalized since the end of last year, and for this, especially in the second semester, the great growth that was obtained in the second semester of 2022 will not be observed.
By 2024 there will be a balance between having more supply and stock of vehicles, and demand will have to decrease a “little bit” because there is no market that continues to grow so aggressively.
By 2024 there will be a balance between having more supply and stock of vehicles in Guatemala, according to Luis Pedro Martínez-Mont. (Free Press Photo: Juan Diego González)
It will return to normal levels…
In my opinion, I think so, although it is something very difficult to see. In 2024 there will be new authorities and that may have an impact on the market; apart from the leading interest rate that has been adjusting, but that has not really hit (reflected) in the vehicles today.
In the real market, how have these adjustments influenced?
Although there have been increases in the rate, they have been quite decent and we believe that it has affected other sectors, such as real estate, more than the automotive sector. In addition, there is a lot of competition in the entities for the placement of credit and a very flourishing market is being enjoyed. On the other hand, inflation is already easing a bit, so we don’t think there is much of a problem on the financing side.
Specifically for Toyota Guatemala, what are the plans?
By 2023 we continue to be the most aggressive brand and continue to hold the highest market share. We have new launches, not only of hybrid vehicles, but of other lines that are going to come to compete in segments where we were not before, such as the “B” size SUV segment. We don’t have any models there and we’re going to start participating, so they can help us generate more volume.
It is an aggressive plan for this year…
Yes, totally, and there is a sales forecast that is higher than last year and we could say that it is 20%. We have been breaking records for 24 months. We have a brand that focuses on quality, reliability and the Guatemalan market highly appreciates those qualities. We also try to focus a lot on customer service.
In your opinion, what explains this trend?
The demand. The orders have been spectacular and we have a factory that supports us, that understands us when we have a lack of inventory, and they are always working hand in hand with us. The other aspect is that we plan well in advance and in the company we have always been aggressive than with the uncertainty of covid-19. We continue to focus on what we are good at: car production and customer service.
Where is Toyota going in Guatemala?
We want to be closer to our customers; So we have opened many workshops in the province, we are very strong, and we want our service to be the number one reason, not just the product, so that the customer prefers Toyota. We are planning to open a sales room, and probably next month we will finish construction in Cobán, Alta Verapaz, and by 2024 we will open another sales room in the northern part of the country.
What is the Kinto platform?
We have not yet launched it in Guatemala, but it consists of a mobility program with different branches. Now we are going to start with the car rental and we will have five models. People will be able to download an app that hasn’t been released yet, sign up, a credit card is included, and a reservation can be made via mobile device on the days they want to use the vehicle of their choice.
They have different vehicles such as Corolla, Raize, RAV 4, but two models will be included that people are not used to renting. For example, if someone needs to move, he can rent a Hilux pickup; or if he will take a family trip, he can rent a Hiace. So, what we try to do is facilitate the mobility of clients. The service will be ready in a period of one to two months.
