Toyota Prado, a favorite in Panama
Likely a residual effect from the recent real estate boom in Panama and high consumer confidence, new car sales rose 30% in 2007. Incredibly, stats are currently on pace to increase an additional 30% in 2008. This is the story according to the Association of Auto Distributors in Panama. Toyota led all brands with 12,000 units sold, followed by Nissan.

The ultra luxury car market showed even greater growth as exotic brands like Masserati entered the market last year.

New car sales by year:

2003 17,071
2004 20,694
2005 24,717
2006 31,083
2007 41,375

The possible negative side to this story is that perhaps too many locals are exchanging their land and home assets for depreciating assets such as new vehicles. I have seen first-hand the astounding number of shiny new 4×4 vehicles, particularly Toyota Prados that are being driven around the remote countryside of Panama by formerly modest, working class locals.

Let’s hope these folks are also putting some money in the bank (in Euros).

This post's rating:

Related Stories

Filed under: Business on March 26th, 2008