Analysis of of sales of the
main vehicle vehicle
brands in Guayaquil
Análisis de las ventas de las principals marcas vehiculares de
Guayaquil
Brithany Nahomy Sánchez Bustamante[*]
Marcelo Javier Bastidas Jimenez*
ABSTRACT
This
study focuses on the analysis of the automotive market in Guayaquil during the
year 2023, with the purpose of providing a comprehensive understanding of the
factors shaping the dynamics of the sector. The analysis focuses on three main
areas: consumer preferences regarding vehicle brands, the performance of the
main brands in terms of sales volume, and the impact of import tariffs on the
final price of automobiles. It investigates how consumers' purchasing decisions
are influenced by aspects such as the brand, design, and technology of vehicles
and how these preferences affect the competitiveness and success of brands in
the market.
Keywords: automotive sector - local
economy, vehicle sector, market conditions, sales trends
RESUMEN
Este estudio se centra en el
análisis del mercado automotriz en Guayaquil durante el año 2023, con el
propósito de ofrecer una comprensión integral de los factores que moldean la
dinámica del sector. El análisis se orienta a tres áreas principales: las preferencias
de los consumidores con relación a las marcas de vehículos, el desempeño de las
principales marcas en términos de volumen de ventas y el impacto de los
aranceles de importación en el precio final de los automóviles. Se investiga
cómo las decisiones de compra de los consumidores se ven influenciadas por
aspectos como la marca, el diseño, y la tecnología de los vehículos y cómo
estas preferencias afectan la competitividad y el éxito de las marcas en el
mercado.
Palabras
clave: Sector automotriz
- economía local, sector vehicular, condiciones del mercado, tendencia de
ventas
INTRODUCTION
The automotive
sector is important for the
local economy due to its significant contribution to GDP, through the
manufacture, sale and maintenance of vehicles, thus generating income that
boosts the country's economy (Ramírez & Gómez, 2021). In addition, this
sector has a notable impact on employment generation, as it requires
professionals such as engineers, assembly designers, sales personnel, and
related services such as insurance, etc. (Martínez, 2022).
According to the
Asociación de Empresas Automotrices del Ecuador (AEADE, 2023), in Guayaquil,
Chevrolet leads
the ranking of vehicle brands, followed by Kia, Toyota, Hyundai, Chery, Suzuki,
Renault and Great Wall. The demand for vehicles has increased due to population
growth, economic growth, and improved quality of life (AEADE, 2023). In
addition, innovation in dealerships has played an important role, especially
with the introduction of electric and hybrid vehicles Garcia & Perez,
2022).
The
analysis of vehicle sales in Guayaquil is enriched by applying the
"Branding" theory of Philip Kotler, recognized as the father of
modern marketing. According to Kotler, branding is the process of building and
managing a brand to establish an emotional connection and differentiation in
the consumer's mind. This theory is fundamental to understanding how brands
such as Chevrolet, Kia and Toyota create clear identities that influence
consumer perception and ultimately their purchasing decisions. Chevrolet stands
out for its robustness in the pickup truck segment, while Toyota reinforces its
image with advanced technology in hybrid cars. Chinese brands, such as Chery
and Great Wall, have captured significant market share by offering vehicles
with competitive value propositions, demonstrating how differentiation and
delivering on the value promise are crucial to sales success (Kotler, 2021).
In addition, Kotler points out that
branding has a direct impact on the consumer's buying process. Brands implement
branding strategies to be preferred by consumers, which translates into
increased sales. In the context of Guayaquil, the growing demand for electric
and hybrid vehicles reflects how brands are adapting their strategies to meet
consumers' expectations of sustainability and technology. Constant
communication, promotions, and the perception of social responsibility are
essential elements that strengthen customer loyalty and increase market share
(Kotler, 2021; Fernández & Ruiz, 2020).
The purchasing power of Guayaquil's
population and accessibility to credit make vehicle purchases attractive, along
with factors such as fuel prices and subsidies (López, 2021). Marketing
strategies include advertising in traditional and digital media, sponsorships,
events, promotions, and influencer marketing (Fernandez & Ruiz, 2020).
The typical vehicle consumer in Guayaquil
is between 25 and 50 years old, middle and upper class, and tends to prefer
SUVs for their versatility, but also looks for sedans and compacts for the
city. Family, social status, and technological and safety features are
important factors in their purchase decision (Rodríguez, 2022). There is a
growing interest in hybrid and electric vehicles due to their sustainability
and long-term savings (Ramírez & Gómez, 2021).
In terms of brands, Chevrolet leads in the
pickup truck segment with models such as the D-Max, Kia has a strong presence
with models such as the Kia Sonet, and Toyota stands out especially in the
pickup truck and hybrid car market with models such as the Corolla Cross.
Chinese brands, such as Chery, Great Wall and JAC, have captured approximately
30% of the market in the first four months of 2023 (AEADE, 2023).
Vehicle sales in Guayaquil are significant
in the national context, although other cities such as Quito, Esmeraldas, Durán
and Ambato also show notable growth (López, 2021). The COVID-19 pandemic
affected sales in 2020, but in 2021 there was a recovery due to the economic
reactivation and the easing measures adopted by the government (Martínez,
2022). However, the sector faces structural challenges, such as the high tax
burden that makes vehicles more expensive (García & Pérez, 2022).
In Guayaquil, SUVs, especially Chinese
models such as those from Chery, are increasingly popular due to their price
and competitive features. In addition, there is an increased interest in
electric and hybrid vehicles, driven by events such as the Auto show 2023
(AEADE, 2023). Consumers are looking for economical and technological vehicles,
valuing value for money and fuel efficiency (Rodriguez, 2022).
The public's perception of brand quality
and reliability varies, influenced by personal experience, brand reputation and
the opinions of family and friends (Fernández & Ruiz, 2020). Sales
strategies differ between national and international brands, with national
brands focusing on promoting their local identity and competitive prices, and
international brands focusing on their global reputation and a wider range of
models (López, 2021).
Vehicle dealerships play a key role in the
market by being the main points of sale for new and used vehicles, offering
maintenance, financing, and insurance services (García & Pérez, 2022).
Ecuador's economic and political situation may affect sales, influencing
factors such as credit availability and the population's income (Martínez,
2022).
The automotive market in Guayaquil faces
challenges such as competition, economic volatility, and government
regulations, but it also has opportunities thanks to the growth of the middle
class, urbanization, and the need for mobility (Ramírez & Gómez, 2021).
Brands are adopting new technologies and promoting electric and sustainable
vehicles, although full adoption may be limited by costs and infrastructure
(García & Pérez, 2022).
Government policies influence vehicle sales
through taxes and environmental regulations, affecting prices and demand
(López, 2021). The perception of sustainability and social responsibility of
brands is also important for consumers, valuing sustainable practices and
corporate social responsibility (Fernández & Ruiz, 2020).
The future projection
of the automotive market in Guayaquil will depend on several factors, but growth
in vehicle demand is expected due to
increased urbanization and the growth of the middle class (Rodríguez, 2022).
Increased adoption of clean and efficient technologies, such as electric and
hybrid vehicles, is also anticipated, driven by environmental regulations and
increased awareness of sustainability (Ramírez & Gómez, 2021).
Overall,
this article aims to provide a comprehensive and up-to-date understanding of
the Guayaquil automotive market by analyzing various aspects ranging from
consumer preferences to the macroeconomic implications that shape the industry.
A detailed approach to these aspects not only provides an understanding of the
current market dynamics, but also predicts future trends that may affect
consumers and automakers in the region.
MATERIALS AND METHODS
In
order to determine consumer preferences regarding vehicle brands in Guayaquil
and evaluate the impact of import tariffs in 2023 on the final price of
vehicles marketed by the main brands in the market, we intend to conduct a
simple random sampling and then a survey.
According
to the results of the last National Population and Housing Census of Ecuador,
the population of Guayaquil over 18 years of age was approximately 1.6 million
people. To calculate the size of the random sample needed for a population of
1.6 million people with a confidence of 95% and a margin of error of 5%.
A
sample of 385 individuals would then be surveyed, using the personal interview
technique by intersection on the street.
In
the case of the concessionaires, the information provided by the
Superintendence of Companies, Securities and Insurance was considered, which
indicates in its ranking of companies 2023 that there are a total of 236
concessionaires in the city of Guayaquil. The sampling applied in this case is
that of trials, reaching a sample of 5 people, belonging to different
concessionaires. The survey technique used is the in-depth interview.
These
results highlight the relevance of reputation in the automotive market, as most
consumers seem to attach great importance to this factor when choosing a
vehicle. This trend indicates that familiarity and trust in traditional brands
play a crucial role in the purchase decision. The preference for brands with an
established reputation underscores the importance of maintaining a good image
and trust in the market to attract consumers.
RESULTS
According to the preceding graph, it can be observed
that a significant majority of people consider very likely 47.94% or likely
31.96% the possibility of buying a vehicle of a traditional brand such as
Chevrolet, Kia or Toyota. Overall, this represents 79.90% of the responses.
On the other hand, a smaller group considers this
possibility as unlikely 9.54%, indifferent 7.22%, or not likely 3.35%, adding
up to a total of 20.11% who do not see the likelihood of buying a vehicle from
these traditional brands with such certainty.
These results indicate that consumers tend to prefer
traditional brands because of the familiarity and trust they have with . The strong inclination to consider highly likely the
purchase of vehicles from traditional brands such as Chevrolet, Kia or Toyota
reinforces this notion, underscoring the importance reputation and trust in consumers'
purchase decision. These results highlight the relevance of reputation in the
automotive market, as most consumers seem to attach great importance to this
factor when choosing a vehicle. This trend indicates that familiarity and trust
in traditional brands play a crucial role in the purchase decision. The
preference for brands with an established reputation underscores the importance
of maintaining a good image and trust in the market to attract consumers.
These results highlight the positive perception
consumers have of the quality of traditional brand vehicles compared to other
options available in the market. The majority of respondents show a high level
of satisfaction, which underscores the importance of maintaining high quality
standards to retain consumer preference, the value for money of traditional
brand vehicles in Guayaquil is well valued by most consumers. This positive
perception highlights the competitiveness of these brands in the local market
by achieving a balance that meets customer expectations in terms of quality and
cost, consumers attach to the availability of after-sales services and spare
parts when deciding to purchase a vehicle from a traditional brand. The high
valuation of these services indicates that consumers value not only the initial
quality of the product, but also the ongoing support and accessibility of
maintenance. Maintaining a solid after-sales support and spare parts system is
crucial for customer loyalty and competitiveness in the automotive market.
These results show that there is a diversity of opinions among respondents
regarding the consideration of purchasing a vehicle from a Chinese brand.
Although a significant percentage is willing (totally or partially), there is
also a considerable proportion that is indifferent or even unwilling.
This picture may reflect the varying familiarity
consumers have with Chinese brands in terms of quality and reputation compared
to traditional brands. Neutrality and low interest may indicate a lack of
information or direct experience with vehicles from these brands. These results
could influence the marketing and positioning strategies of Chinese brands in
the market, highlighting the importance of improving the perception of quality
to attract more consumers.
A minority segment perceives these vehicles as very
reliable 15.21% or reliable 24.49%, for a total of 39.70% with a favorable
opinion. In contrast, a considerable proportion of respondents consider them
unreliable 33.98% or directly unreliable 7.74%, adding up to 41.72% who have a
negative perception of the reliability of Chinese brands in this aspect. These
results underscore the need for Chinese brands to improve the perception of
reliability among consumers. Confidence in long-term durability and performance
is crucial in the vehicle purchase decision, significantly influencing consumer
preference.
These findings indicate significant consumer demand
for the integration of advanced technologies in Chinese brand vehicles. This
perception highlights the strategic importance for Chinese brands to focus on
developing and promoting technological innovations to remain competitive in the
global automotive market.
The importance of consumer perception and personal
experience in the willingness to recommend automotive products from Chinese
brands. The variability in responses suggests areas where these brands can
focus on improving perceived quality , reliability and
customer satisfaction to strengthen consumer trust and loyalty, key factors in
the decision to recommend vehicles to others.
The results focused on the commercial advisors of
vehicle dealerships in Guayaquil reflect a combination of challenges and
significant achievements. In the first half of the year, they faced a slow
period and changes in the market, which required them to adapt to aggressive
marketing strategies and fluctuations in demand. However, these difficulties
were overcome with discipline and teamwork, leading the brands to stand out
nationally and internationally, even under adverse economic conditions such as
increased tariffs and taxes. These achievements highlighted the ability manage
uncertainty and thrive in changing situations. In reflecting on these
experiences, it is important to consider how they have shaped the identity and
core values of sales teams.
Trade advisors mentioned that import tariffs
significantly impacted the automotive market, initially boosting sales due to
early purchases. However, starting in April, higher prices reduced demand,
especially for foreign and premium brands. To counteract this, other brands
adjusted prices and offers, which helped stabilize and even increase sales in
some cases. Brand loyalty and effective marketing strategies also played an
important role. Chinese brands took advantage of the change in the market to
stand out, demonstrating the importance of adapting quickly to new economic
conditions.
Respondents believe that, despite the increase in
taxes such as VAT and ICE, the vehicle market remained stable in 2023, thanks
to subsidies and financing strategies that allowed consumers to purchase
higher-value vehicles, raising the average ticket. Brands adopted measures to
mitigate the impact of tariffs, such as absorbing part of the additional costs
and offering attractive promotions, which helped maintain competitiveness. In
addition, price , especially in lower maintenance
costs, favored certain brands, making them more accessible. Together, these
strategies and the dealerships' ability to adapt contributed to stable sales,
despite external economic pressures.
When discussing with interviewees the strategies
adapted to counteract the tariffs, they mentioned that the automotive companies
implemented various strategies to manage the economic impact. While some brands
absorbed part of the cost of the increase, they were also forced to increase
prices. Chinese brands, in particular, adjusted their pricing strategies to
capture a larger market share, while other brands faced greater challenges in
adjusting their prices. In addition, dealerships emphasized direct contact with
customers through test drives and personalized experiences to highlight the
quality of their vehicles. Despite the 15% VAT increase, dealerships managed to
avoid negative results and mitigate the impact on customers. Consumer reaction
was mixed: some initially resisted the price increase, but many adapted over
time, adjusting their expectations and budgets.
The increase in import tariffs has generated greater
price among vehicle consumers, which has had a diverse impact on their
behaviors and preferences. Many customers have sought more economical options,
considered other makes and models, or opted for used vehicles to offset higher
costs. This shift in preferences has led to a decrease in demand for high-end
vehicles and an increase in interest in more affordable models, including
Chinese brands that offer good value for money. Dealers have responded by adjusting
their sales strategies and promotions, offering incentives and discounts to
attract and retain buyers. Although most customers have shown dissatisfaction
and increased price sensitivity, a significant portion remain loyal to the
brands, recognizing that price increases are a consequence of external economic
factors. This commitment and loyalty has enabled
dealerships to maintain a strong customer base despite economic difficulties.
The interview reveals a noticeable shift in consumer
preferences toward smaller models, influenced by price increases and vehicle
availability. Consumers have begun to place more value on the offerings and
attractive features of economical models, leading to
a decline in demand for premium brands in favor of more affordable options.
Despite the competition, premium brands maintain their appeal among customers
who value excellence and prestige, helping them retain a strong base of loyal
consumers.
When import tariffs were mentioned, they have
significantly impacted the competitiveness between traditional and Chinese
brands in the automotive market. The need to compete with the low prices of
Chinese brands has forced traditional brands to improve their sales and pricing
strategies, benefiting consumers. Despite the increase in prices due to
tariffs, traditional brands are trying to educate customers about the
price-quality ratio and the track record of their products. In short, Chinese
brands have gained market share, while traditional brands have had to adapt
quickly to remain competitive.
It was noted that there was no clear trend in the
preference between the purchase of new and used vehicles. Some customers opted
for used vehicles due to the more affordable prices, especially in light of the
increase in the cost of new vehicles due to tariffs. However, many consumers
preferred to purchase new vehicles because of the warranty and more up-to-date
technology they offer. The used vehicle market continues to be active,
reflecting the economic constraints faced by many buyers, ,
who cannot always afford a new vehicle, whether on credit or cash. Brands
responded to this dynamic by offering clear information on the advantages and
disadvantages of both options, helping consumers make informed decisions. In
addition, the digitalization of marketing, driven by the pandemic, allowed
brands to reach more potential buyers through the Internet, which has
influenced purchasing decisions. This evolution in marketing and sales has been
crucial in adapting to changing market and consumer needs.
Brands have had to adjust their marketing and sales
strategies in response to import tariffs and price increases. Instead of
resorting solely to direct discounts, traditional brands have chosen to focus
on special events and benefits to avoid damaging their brand image. The
evolution of marketing has led to a greater need to offer tangible benefits and
measurable results in campaigns to stand out on social networks and other
media. Some brands have launched more aggressive promotions and discounts, enhancing
campaigns to highlight value for money and optimizing financing options. In
addition, they have implemented bonuses and incentive programs to alleviate the
impact of price increases and improve the shopping experience, thus maintaining
competitiveness and customer loyalty. These loyalty strategies and focus on
added value have been crucial in attracting and retaining customers in a
challenging economic environment.
It was mentioned that, due to import tariffs, there
has been an increase in demand for used vehicles because they are more
economical. However, promotions and discounts on new vehicles have attracted
some consumers, highlighting the importance of marketing strategies.
Preferences between new and used vehicles vary according to the offers
available, warranties and technology of the new models. The used vehicle market
remains relevant, but brands offering both types of vehicles have been able to
influence customers' decisions through promotions and price adjustments.
Key strategies include focusing on quality, offering
long-term benefits, and maintaining transparent communication with customers.
It is important to adopt new technologies, especially electric vehicles, and
improve the charging infrastructure. Efficiency in the supply chain, innovation
in locally produced vehicles, and diversification of import sources are
crucial. In addition, negotiating better terms with suppliers and seeking
strategic alliances will help reduce costs and maintain competitiveness.
CONCLUSIONS
After an exhaustive analysis of consumer preferences
in Guayaquil with respect to vehicle brands, clear trends towards certain
manufacturers stand out. The brands that stand out are those that combine
perceived quality and reliability; characteristics that significantly capture
the attention of the local market. Perception of safety, availability of
after-sales service and brand reputation emerge as determining factors in the
purchasing decisions of consumers in Guayaquil.
In addition, there is a growing inclination towards
brands that incorporate innovative technologies and have a clear commitment to
environmental sustainability. This reflects an evolution in the expectations of
the Guayaquil consumer towards vehicles that not only satisfy mobility needs,
but also align with values of environmental responsibility and long-term
technological progress.
The analysis of sales variations of the main vehicle
brands during 2023 reveals significant fluctuations in their market share. Some
brands have experienced remarkable growth, possibly driven by effective
marketing strategies, new model launches or strategic pricing adjustments to
better respond to local expectations. On the other hand, some brands have faced
challenges in increasing their share, probably due to intensified competition
or external economic factors.
Regarding the impact of import tariffs in the year
2023, a generalized increase in the cost of vehicles sold in Guayaquil has been
observed. This increase has significant upward pressure on sales prices,
affecting accessibility and demand in certain segments of the local market.
Brands have responded by implementing price structure
adjustments, optimizing the supply chain and diversifying suppliers to mitigate
these effects. However, consumers face a reality of higher prices, which could
influence their purchasing decisions and the competitive dynamics among
manufacturers in and around Guayaquil.
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* MSC. Salesian Polytechnic University,bsanchezb2@est.ups.edu.ec , https://orcid.org/0009-0003-9615-6535
* MSC. Salesian Polytechnic University,mbastidas@ups.edu.ec ,
https://orcid.org/0000-0001-6448-1286