While most countries in the region have seen a significant slowdown in new vehicle sales, the sale of new model-year vehicles in Costa Rica increased 24.9 percent in 2015, according to the organizing committee of Expomovil 2016, an annual car show that brings together the country’s largest dealers offering their biggest discounts of the year to thousands of car buyers.

Organizers said that consumers are choosing more fuel efficient vehicles than ever before, leading to improved air quality as well as less trips to the pump for consumers.

According to the Latin American Association of Automobile Dealers, most markets in Latin American witnessed a significant slowdown in new vehicle sales last year, with only Mexico and Costa Rica standing out with strong growth.

Officials said that consumer preference for more environmentally-friendly vehicles is helping the country to lower its emissions of greenhouse gases and reducing air pollution, especially in the San Jose metro area.

 

Legislation could spark big increase in demand for electric and hybrid vehicles

Meanwhile, a bill that is making its way through Costa Rica’s Legislature has the potential to spark a significant increase in demand for electric and hybrid vehicles, analysts believe.

Members of the Legislative Assembly’s Commission on Government and Administration heard arguments in favor of Legislative Bill 19744, known as the Incentive and Promotion of Electric Transport Act, last month.

The bill proposes significant incentives for motorists who choose to purchase electric and hybrid vehicles, including a complete exemption from import duty and related taxes, and an exemption from the standard 13 percent sales tax.

Those purchasing electric and hybrid vehicles would also be exempt from paying the annual road tax known as ‘marchamo’ for a period of five years, and would not have to pay parking meters.

Drivers of these vehicles would also be exempt from San Jose’s vehicular restrictions, or “tag days” in which vehicles whose license plates end in a certain number are restricted from driving in the core city during certain days of the week.