Santo Domingo – The automotive landscape in the Dominican Republic has undergone a dramatic transformation, with Chinese vehicles emerging as the dominant force in the new car market. According to data from the United Automotive Industry Group (Guía-RD), China supplied 14,556 new vehicles to the Dominican market in 2025, dwarfing the United States’ contribution of merely 2,944 units. This establishes a remarkable ratio of five Chinese vehicles for every American car entering the country.
The ascendancy of Chinese automakers is attributed to a dual strategy of competitive pricing and sophisticated design. Modern, attractive vehicle designs coupled with increasingly affordable prices have positioned Chinese brands as the preferred choice for Dominican consumers. The average Free On Board (FOB) value for new vehicles declined to $22,228, making new car ownership more accessible compared to used alternatives. This price advantage has been crucial in shifting consumer preference toward new vehicles from authorized dealerships, which offer manufacturer warranties and eliminate the uncertainties associated with pre-owned vehicles.
Despite tariff exemptions for American vehicles under the DR-CAFTA free trade agreement, the U.S. maintains leadership only in the used vehicle segment, importing 32,700 units compared to China’s 505. Dominican consumers increasingly view Chinese vehicles as a secure investment with guaranteed dealership support.
Market dynamics have been further influenced by broader economic conditions. A 4% reduction in overall vehicle imports during 2025 enabled importers to balance supply with diminished demand. The Dominican Central Bank’s restrictive monetary policy, which pushed interest rates on consumer loans to 19.4% annually, reduced purchasing power and compelled consumers to reconsider spending patterns.
In response to these market shifts, importers have diversified their offerings to include hybrid and super-hybrid vehicles, which saw import growth of 54.7% in the previous year. These models provide enhanced fuel efficiency and superior warranties, adding significant value to the new car market amidst evolving consumer preferences and economic challenges.