According to the Ecuadorian Chamber of Automobile Manufacturers (Cinae), 49% of new cars sold in Ecuador from January to November 2025 were vehicles assembled in China...

[Quoted report] According to data from the Ecuadorian Chamber of Automobile Manufacturers (Cinae), 49% of new cars sold in Ecuador from January to November 2025 were vehicles assembled in China. With the entry into force of the China-Ecuador Free Trade Agreement in May 2024, Ecuador will continue to reduce import tariffs on cars from China starting from January 1, 2026. 2026 will also become the phased reduction of tariffs on cars with China. The third year. The report pointed out that tariff concessions are divided into different periods according to vehicle type, covering 5 to 20 years; according to the established timetable, the last batch of models will achieve zero tariffs in 2044.

The same tax cut will also cover China motorcycles. The report recalled that before the agreement came into effect, China motorcycles would have to pay a 30% tariff when entering Ecuador; starting from January 1, 2026, the tax rate will be reduced again (the specific reduction will be subject to the final tariff list of Ecuador).

brief comment

The tax cut on China has entered its third year, which means that the cost advantage of China cars in Ecuador will change from a "phased" to a "predictable long-term curve." It is especially suitable for exchanging stable supply and deep cultivation of channels in exchange for share. For complete vehicle exporters, it is recommended to recalculate the 2026 price system according to the new tax rate as soon as possible; at the same time, sorting out the concession period by model category, giving priority to segments with fast tax reductions and large demand (usually compact cars and urban SUVs, as well as entry prices that are more sensitive to fuel consumption/maintenance). For the two-wheeled motorcycle business, the original base of 30% tariff is higher. The tax reduction has more obvious flexibility on retail prices, but it will also trigger more intense price competition. Exporters should regard quality, spare parts and after-sales network as a moat to avoid falling into a simple price competition. It should be reminded that the Ecuadorian market has a high acceptance of "China assembly", but the competition is equally crowded. What can turn the tax reform dividend into a sustainable advantage is not a one-time price cut, but faster delivery, more stable channels, lower total cost of ownership (TCO) and more reliable after-sales protection.

Source:https://www.primicias.ec/economia/enero2026-reduccion-aranceles-carros-motos-china-ecuador-112698/

Source: Guangdong Good Car

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