hybrid and electric vehicles currently face a 35% tax, plus value added tax (5%). The Minister of the Treasury recently announced that 46,000 hybrid and electric vehicles would be imported free of tariffs and with a reduced 5% value added tax. These measures are aimed at increasing the popularity of these vehicles to improve Colombia’s air quality, and offers an opportunity for US exporters.
Colombia currently has 400 electric and 370 hybrid vehicles registered , making it the smallest sector of Colombia’s vehicle stock. High prices, largely due to tariffs and taxes, and lack of infrastructure make these vehicles unpopular in Colombia’s market. Imported
Current Market Trends & Demand
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The Government of Colombia is promoting awareness campaigns through national television to prevent the purchase of stolen auto parts, and it is also enforcing legal measures for consumers who buy illegal (stolen and counterfeit) auto parts.
Ministry of Transportation issued a regulation, without public consultation or a transition period, expanding mandatory scrappage to a new vehicle segment—cars, trucks, minibuses, campers, and dump trucks used for “special public service.” In 2017, Colombia implemented a new “cupo” system that imposes a 15 percent tax on imports of new trucks. The system is set to expire in June 2019, at which point the market is scheduled to be open to imports of trucks and “special public service vehicles” with no restrictions
The Colombian automotive parts industry faces several challenges, such as stolen vehicles, counterfeit products and smuggling. During 2017 a total of 31,325 vehicles (including motorcycles) were stolen in the country, representing a decrease of 17.7 percent in comparison with 2016. This has created an illegal market of auto parts valued at approximately USD 685 million in 2017.
market trends