The outlook for automotive aftermarket product exports to Honduras looks positive, with an expected 15 percent growth rate over the next three years. An aging car population, coupled with increasing car ownership in major cities, continues to fuel demand for automotive parts and accessories. An estimated 70 percent of the total vehicle population, registered at over 1.4 million units in 2015, is at least five years old and in need of repair. The number of motorized vehicles is predicted to double in five years’ time and the distances traveled should also increase due to an accelerated urban expansion. Although road infrastructure is improving, many primary and secondary roads are still in poor conditions throughout the country. Growing consumer awareness over the importance of scheduled servicing and preventive maintenance is also influencing the market. Total Honduran imports of automotive aftermarket products is estimated at $243.1 million in 2016, accounting for an 18 percent increase from the previous year.
The vehicle population in Honduras has increased by over 300,000 units in the last five years, with a total of 1,416,678 registered units in 2015. At present, the largest vehicle category is being led by motorcycles (accounting for 34% of the market), followed by pick-ups and all terrain (25%), automobiles (19%), luxury & work SUVs (9%), trucks and heavy vehicles (8%), and buses (2%). By fuel type, the largest segment is gasoline.
Honduras
Summary
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Many Honduran firms have enjoyed longstanding relationships with U.S. suppliers and the high receptivity to U.S. products is reinforced by the geographical proximity of the two countries. The duty assessed by the Honduran government at the time of customs clearance ranges from 0 to 15 percent for most items. For marketing purposes, Honduras can be divided into two regions: the North Coast, including San Pedro Sula, the country’s commercial and industrial capital; and the Central region, where Tegucigalpa, the political capital and largest city, is located. Tegucigalpa and San Pedro Sula are the major distribution centers for imported goods.
Honduras, located in the heart of Latin America, is only at a 2-hour flight from several U.S. gateway cities and 48 to 72 hours by sea. With the lowest logistical costs in the region, Honduras serves as a distribution platform for the rest of Central America. Puerto Cortés, the largest deep-water port in the region, is the first port in Latin America to qualify under both the Megaports and Container Security Initiatives (CSI), which now make approximately 90 percent of all transatlantic and transpacific cargo imported into the U.S. subject to prescreening prior to import.
Market Entry