BMI's Executive Summary

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The Sector At A Glance

Key Insights On The Automotive Sector Of Peru

The absence of any significant investment by industry majors in Peru's automotive market sees Business Monitor International (BMI) reiterate its forecasts for the sector in the Peru Automotives Report for Q406. The trend of positive growth for the sector has continued during the second half of the year, with Peruvians buying more new vehicles on the back of increased consumer confidence and greater purchasing power. In fact, industry data shows that Peru boasts Latin America's fastest growth rate in the new car market.

The Peruvian automobile industry association Araper reported a 42% increase in new car sales for the period January - July 2006. According to Araper, in the first seven months of the year new car sales totalled 17,573 units. Sales relating to station wagons, vans, multipurpose vehicles (MPVs) and sports utility vehicles (SUVs) rose by 41%, while sales of commercial vehicles including pick-up trucks and vans were up by 32%. Heavy vehicle sales soared by 75%. In July alone, some 2,794 new vehicles were sold. Toyota continues to enjoy a stranglehold on the market. In the period January-September the carmaker's sales exceeded 6,000 units, while its market share rose to 30.8%. A bullish Toyota has set itself the target of more than 8,000 units for 2006. BMI is forecasting total vehicle sales of 71,265 units for 2006, rising to 82,170 units by 2010.

The current strength of new car sales in the Peruvian market against the traditional weight of used imported vehicles has led Dai Ichi Motors, one of the biggest importers of used vehicles in the country, to predict that new vehicle sales will surpass sales of imported vehicles this year. According to Dai Ichi, new vehicle sales could account for 60% of the market, while used imports will account for 40%.

In terms of industry developments, an interesting scene for future competition has been set with the arrival of four Chinese automotive brands on the Peruvian market. In November, the brands Great Wall, Hafei, Geely and FAW commenced their foray into the market via local distributor Zona Motors. The brands are expected to preserve features that reflect the cars' origins, leading Zona Motors to believe that they will change the face of the sector. Zona Motors is eyeing more than 3% of the market in 2006, rising to 5% by the end of 2007.

The interest of the Chinese brands in Peru is in line with BMI's Business Environment Ranking for the country, which sees Peru retain first place. Vehicle ownership is below average for the region, suggesting there is still room for growth in the market.

Contents

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Chapter 1 – SWOT Analysis

Peru Auto Industry SWOT

Peru Economic SWOT

Peru Business Environment SWOT

Chapter 2 – Latin America Regional Overview

Table: Latin America Autos Production – Historical Data & Forecasts (CBUs unless otherwise stated)

Table: Latin America Autos Sales – Historical Data & Forecasts (CBUs unless otherwise stated)

Chapter 3 – Business Environment Rankings

Table: Latin America Business Environment Ranking

Economics – Long-term Risk

Politics – Long-term Risk

CBU Output Growth

Vehicle Ownership/Penetration Potential

Regulation

Competitive Environment

Chapter 4 – Industry Forecast Scenario

Table: Peru Autos Sector – Historical Data & Forecasts (CBUs unless otherwise stated)

Chapter 5 – Macroeconomic Forecast Scenario

Table: Peru – Economic Activity

Country Snapshot: Peru Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption And Stratification

Table: Wages Per Year

Chapter 6 – Special Focus: Latin America: Automotive Focus Report On Premium Cars

Regional Overview

Table: Competitive Landscape: Regional Comparison

Table: Prospects For Growth In Latin America’s Premium Car Markets

Market Size & Opportunities For Growth

Table: Best-Selling Vehicles In Peru In 2004

Customer Profile

Key Players

SWOT Of Peruvian Premium Car Market

Special Focus: Commercial Vehicles

Table: Peru New Vehicle Sales

Chapter 7 – Competitive Landscape

Market Overview

Market Structure

Table: Peru Auto Sector – Key Players January 2006

Chapter 8 – Company Monitor

GM Regional Overview

Table: General Motors Regional Car Sales

Table: General Motors Regional Production

General Motors Regional SWOT

Company Profiles

Toyota

DaimlerChrysler

BMI Forecast Modelling

Automobile Industry

Sources

Appendix: Regional Demographic Data

Table: Wages (ave. per annum), US$

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, GDP, US$bn

Competitive Landscape for Latin America Automotives: Sample of  
Companies Ranked

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Rankings and Competitive Landscapes by production and sales; market share and change on previous year; number of employees, ownership structure and year established. Also includes analysis of company expansion, export and investment strategies.

Network of Latin American Automotive Sources

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BMI's Latin American Automotives Reports are based on an extensive network of multilateral organisations, government departments, automotive industry associations, chambers of commerce and company reports. Information sources include:

BMI's Affiliates and Partners in Latin America

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