In a dynamic and ever-evolving market like the Dominican Republic, vehicle importation plays a crucial role in mobility and the country’s economic development. In 2021, the flow of imported vehicles revealed a series of revealing figures that reflect both the challenges and opportunities facing this sector.
Vehicle Importation: A Detailed Analysis
During 2021, the Dominican Republic imported a total of 123,278 vehicles, underscoring the significant importance of this market to the national economy. Of this figure, 26,579 vehicles were new, representing 21.5% of the total, while 96,699 vehicles were used, comprising the remaining 78.4%. This proportion reveals a ratio of 3.6 used vehicles for every new vehicle imported, highlighting the market’s preference for second-hand options.
Vehicle Fleet: Challenges in Modernization
One of the most notable concerns in the Dominican automotive landscape is the average age of the vehicle fleet. Recent data indicates that 60.5% of vehicles in circulation are over 15 years old, presenting significant challenges in terms of road safety, energy efficiency, and emissions. Modernizing and renewing this vehicle fleet is a key priority to enhance the quality and sustainability of transportation in the country.
Contributions to Fiscal Revenue: Economic and Fiscal Impact
The Dominican automotive sector plays a fundamental role in generating fiscal revenue. In 2021, it ranked first among the top 10 productive sectors with the highest revenue impact for the General Directorate of Customs (DGA), contributing a total of RD$25,880 million. Additionally, it paid RD$18,179.2 million to the General Directorate of Internal Taxes (DGII). Together, the automotive sector made a total contribution of RD$44,060 million to fiscal revenue, highlighting its economic significance and contribution to the national budget.
Investment in Research and Development: Driving Innovation
Investment in Research and Development (R&D) is a crucial factor for competitiveness and technological advancement in the global automotive industry. In a broader analysis, it is revealed that eight automakers, including Volkswagen, Daimler, Toyota Motor, Ford Motor, BMW, General Motors, Honda Motors, and Nissan Motor, are among the top 35 companies worldwide investing in R&D. These companies allocate an average of 7,805 million euros each to research and development activities, representing approximately 5% of their sales. This continuous investment drives innovation in safety, efficiency, and sustainability in the automotive industry.
In summary, vehicle importation in the Dominican Republic is a vital component of its economy and transportation infrastructure. As the sector continues to evolve, addressing existing challenges such as modernizing the vehicle fleet and promoting research and development is essential to ensure sustainable growth and safe, efficient mobility for all Dominicans.
