"3.4% drop in premium vehicle sales in Peru marks an uncertain year."

The situation of the premium vehicle market in Peru has been the subject of analysis in recent months, and the results up to July 2023 reflect a contraction of 3.4% in new vehicle sales compared to the same period last year, according to data provided by the Automotive Association of Peru (AAP). This decline, while concerning, occurs in a context of economic recovery following the ravages of the pandemic and a greater demand and supply that characterized last year. Antonio Rivera, general manager of BMW Group Peru, emphasizes that the growth experienced in 2022 has not been sustained in 2023, highlighting fluctuations in the automotive market. The decrease in the premium sector is less severe than the drop recorded in the light vehicle segment, which reports a decline of 13.5%. Mike Pariamachi, business manager of cars at Divemotor, mentions that the premium market has proven to be more resilient to the current crisis. However, experts like Willard Manrique from the University of Piura warn that the recovery of consumption and consumer confidence at the local level is still not optimal, which could complicate projections for the rest of the year. Amid this uncertainty, projections for the premium segment are not entirely encouraging. Alejandro Ruiz de Somocurcio, manager of premium brands at Gildemeister, along with other executives in the sector, anticipates that the year will close with sales levels similar to those of 2023. However, the prospect of an additional contraction of between 1% and 3% remains, suggesting that the path to recovery will be gradual. Manrique estimates that premium segment sales levels could reach pre-pandemic figures between 2025 and 2026, depending on the stabilization of supply chains and the recovery of consumer confidence. In this context, some brands have managed to stand out. Mercedes-Benz, for example, has reported a growth of 16.7% up to July, becoming the only brand in the top 3 that has not seen a decline in sales. Pariamachi attributes this success to an expansion of its portfolio, as well as specific demand for its high-end vehicles, which are bolstered by innovative marketing strategies, such as driving experiences on a Formula 1 circuit. Mercedes-Benz's focus on its Top-L line, which includes luxury sub-brands such as Maybach and AMG sports models, has allowed for a steady flow of sales. The entry prices for AMG vehicles range from $100,000 to $300,000, demonstrating that the luxury segment remains attractive to a market niche willing to invest in exclusivity and quality. Meanwhile, Volvo has surprised with a remarkable growth of 49.3% and expects to sell around 600 units this year. With a clear focus on transitioning to a 100% electric portfolio by 2050, the brand has begun to offer exclusively electrified vehicles in Latin America, including the Peruvian market. Currently, nearly 50% of its sales correspond to plug-in hybrid or electric models, and this percentage is expected to rise to 80% by the end of the year. Jaguar Land Rover, although with more limited projections, is also positioning itself in the market with an average ticket of $100,000, seeking to offer a more exclusive experience to its consumers. However, the BMW brand, which leads the premium sector in Peru, has experienced a decline of 10.9% in its sales, although Rivera remains optimistic about maintaining its top position thanks to a diversified portfolio that includes gasoline, hybrid, and electric models. The drop in Mini, which reached 36.7%, is attributed to a historic sales record in 2022, highlighting the fluctuating dynamics of the market. The lack of units available for sale has limited the brand's growth, posing challenges in inventory management and market supply. In summary, the landscape of the premium vehicle market in Peru currently reflects a challenging environment, where brands must adapt to market conditions and consumer expectations. The recovery of the sector, while possible, will depend on both internal and external factors, and the coming years will be crucial in determining when pre-pandemic levels will be reached again. With a combination of innovation, quality, and a focus on sustainability, the premium sector may find in adversity an opportunity to redefine its path toward the future.