Land Rover to enter Peru

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LIMA -- U.K.-based Inchcape is to invest $5 million in the coming year to set up a local operation and promote the sale of Land Rovers in Peru.

The company hopes to eventually capture at least 3% of the local automobile market with its Rover and Land Rover marques. The company projects earnings of at least $25 million by 2000.

Inchcape has hired Momentum, Ogilivy & Mather to handle advertising for the launch.

Peru currently has a ratio of one car for every 43 residents (in a population of around 24 million), with car sales increasing yearly. New car sales grew by an average of 7% in the first five months of the year.

Yet, despite this growth, per capita car sales remain relatively low in Peru. In 1997, 39,240 new cars were bought in the country. In comparison, 181,000 new cars were purchased in Chile, which has a population of less than 14 million.

The fastest selling new cars are Korean-made Daewoos, which represented 23% of new car sales, or 2,918 automobiles, as at April 1998.

Copyright June 1998, Crain Communications Inc.

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