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The United States is the most significant player in El Salvador’s aftermarket auto parts and accessories market. In a country with stagnant economic growth, U.S. imports in 2018 increased by 1% from the previous year. Industry leaders remain confident and expect higher growth in future years. With 30% of the total Salvadoran import market, U.S. companies enjoy a reputation for high quality products with excellent warranties. The Vice Ministry of Transportation reported that the total number of vehicles in circulation is 1,182,662 in El Salvador, out of which approximately 40% are concentrated in the capital city of San Salvador. 454,282 are new vehicles and 728,380 are used.
Vehicles in circulation increased by 8% from the previous year. Additionally, due to the bad condition of roads and weather conditions, vehicles deteriorate quickly and need frequent repair and/or maintenance. Unreliable, unsafe, and inefficient public transportation are considerations by Salvadoran’s when deciding to buy a car. Vehicles are distributed by type as follows: 531,821 automobiles, 211,809 pick-ups, 289,566 motorcycles, 40,067 heavy trucks, 32,545 light trucks, 34,615 minibuses, 7,351 buses, 10,578 truck heads and 13,283 trailers, 4,872 all-terrain vehicle (ATV), 116 ambulances, 6,039 other types.
61.55% of the used vehicles imported to El Salvador are between 5 and 8 years old. The government is trying to implement a new law to reduce the current used vehicle age allowed from eight years to seven for vehicles imported into the country. Leading automotive brands present in the market include: Audi, Porsche, Nissan, Honda, Hyundai, Kia, Toyota, Chevrolet, Mitsubishi Motors, BMW, Hino, Daihatsu, Chevy, Isuzu, Jeep, Ford, Dodge, Mazda, VW, and Peugeot.
el salvador
Summary
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There are no restrictions to import auto parts or accessories to El Salvador. Importers, distributors, and end users are receptive to U.S. automotive products due to their quality, warranty, and geographic proximity. Nevertheless, the industry is extremely price sensitive. Some products (such as cleaning products for cars) need to be registered at the National Medicine Directorate (Dirección Nacional de Medicamentos, DNM).
El Salvador was the first country to implement the Central America-Dominican Republic-United States Free Trade Agreement (CAFTA-DR) and most of U.S. origin automotive parts received immediate tariff elimination when the agreement came into force. A certificate of origin is required, which can be extended by the U.S. exporter or the manufacturer.
Market Entry & Barriers