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Price is among the most important selling factors in Honduras, followed by quality, availability of parts, and delivery time. Honduran business people buy directly from the source if they feel that the cost-savings is sufficiently advantageous. U.S. exporters that offer attractive financing terms, low prices, warranty, and excellent customer service have the best chance of gaining market share.
There is a complete ban for the importation of used automobiles and passenger motor vehicles/buses of more than 10 and 13 years old, respectively, except for those considered to be classic collectible cars. The CAFTA-DR agreement does not address this trade restriction. Imports of refurbished and right-hand drive vehicles are also prohibited.
Barriers
Although growth is picking up in Honduras, the relatively higher cost of purchasing a new vehicle forces owners to maintain their old automobiles and buy parts and accessories more frequently. There are more than 300 retailers of automotive parts and accessories in Honduras who buy directly from overseas or through local distributors. Major mechanical auto repair industry segments include service stations, specialty repair shops, auto parts stores, vehicle dealers and independent garages. Japanese cars and light trucks dominate the market but parts are often purchased through the United States. American-made pickups, SUVs, heavy trucks and buses have stronger shares of the local market. There are also several major U.S. automotive dealers present in the Honduran market.
According to the “Regulation of Hazardous Gas Emissions of Automotive Vehicles” enacted in 2001, aimed at reducing the increasing air pollution levels generated by tailpipe emissions in the major cities of Honduras, all passenger motor vehicles need to be fitted with an emissions control system or catalytic converter. In general, most automotive aftermarket products and service equipment are expected to offer good sales opportunities in the Honduran market. Particularly promising products include:
Market Trends & Demand
A/C repair; refrigerants
Alignments, diagnostics, spark plugs
All types of engine spare parts
Bumpers; spoilers; tail lights
Car care and cleaning products
Chemicals, motor oils and additives
Electrical and brake system components
Mobile electronics; alarms; sound systems
Repair shop, paint, tools & equipment
Safety equipment
Tires / wheels
Transmission and suspension parts
Undercar and under hood products
MArket Trends