In June 2012, the Ecuadorian government implemented a quota system for automobile imports. Recently, due to the decline in international oil prices, the government further reduced the quota for imported cars and assembly parts, but this was followed by a significant decrease in automobile sales and an increase in local automobile prices.

According to AEADE (Ecuadorian Automobile Industry Enterprises Association) data show that from 2009 to 2011 Ecuadorian car sales have been rising, but since the implementation of the import quota system in 2012, Ecuadorian car sales began to decline, in 2014 sales decreased by 15.1% compared to 2011.

The fall in international oil prices has led to a reduction in import quotas

Ecuador has been running an international trade deficit since 2009, with a trade deficit of $2.09 billion in 2012. In addition, the growth of car sales has aggravated local vehicle exhaust emissions, seriously affecting the environment. The widening trade deficit and deteriorating environment prompted the Ecuadorian government to impose quotas on imported cars.

2015 is the fourth year of the implementation of the import quota system, as a country with oil exports as the main financial revenue, affected by the decline in international oil prices, Ecuador issued a new policy, which stipulated that the quota of imported vehicles and assembly parts in Ecuador in 2015 was reduced by 57% compared with 2014, which is a historic low.

Electric cars may be the spring of the Ecuadorian car market

Due to the reduction of the quota of imported cars, the model and number of cars for market sale have been greatly reduced, the price of local cars has been rising, and the phenomenon of layoffs and even closure of dealers' direct stores. In order to make up for the vacancy in the market demand for automobiles and reduce the harm caused by automobile exhaust emissions, electric vehicles have become a good choice in the current market.

To this end, the Ecuadorian government has launched a tax relief policy for imported electric vehicles, which will reduce tariffs, special consumption taxes, value-added taxes and other taxes on imported electric vehicles according to their selling prices. Ecuador's Foreign Trade Council passed a resolution in June to exempt imported electric vehicles from tariffs. Tariffs on electric vehicle batteries and charging devices will also be reduced to 0%.

Under the policy environment of traditional car import quota restrictions and the promotion of electric vehicles, energy-saving and green electric vehicles will become a new choice for Ecuadorian consumers in the future, and electric vehicles will become the spring of the Ecuadorian auto market in the future.