The fall in the dollar boosts vehicle imports in Paraguay and overwhelms repair shops

The 24% drop in the dollar against the guaraní so far this year drove a 31.7% increase in vehicle imports to Paraguay in the first quarter, with sales growth of over 19%, especially in the SUV segment. However, the surge has overwhelmed the capacity of authorized service centers, prompting dealerships to invest in infrastructure and spare parts.

The Paraguayan automotive market is experiencing a period of strong expansion, driven by the sharp fall of the dollar against the guarani. In the first quarter, vehicle imports rose 31.7%, while sales grew more than 19%, fueled by consumers looking to take advantage of the local currency's increased purchasing power.

The dollar closed the last week quoted at G. 6,000, the lowest level in nearly a decade. Year to date, the US dollar has lost 24% of its value against the guarani, which has become the Latin American currency that appreciated the most during this period. Since the prices and financing contracts for new cars are structured in dollars, the guarani's appreciation directly reduces the real cost of installments and cash payments.

This scenario has especially favored the SUV segment, which already accounts for 60% of light vehicles imported into the country. Families have prioritized versatility, safety, and resale value, consolidating the leadership of brands such as Toyota, Kia, and Chevrolet.

For companies associated with the Cámara de Distribuidores de Automotores y Maquinarias (CADAM), the rapid growth has brought logistical challenges. The 19.3% increase in sales is squeezing operating margins and requiring faster inventory cycles to avoid stockouts. The main bottleneck, however, lies in after-sales service: the expansion of the vehicle fleet has saturated the capacity of authorized service centers, and dealerships are now prioritizing investments in infrastructure, importation of spare parts, and technical staff training to maintain customer loyalty.

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Updated: Jun 2, 2026, 10:35 AM