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In 2015, the annual production of automotive parts in Colombia was equivalent to USD 321 million, while exports accounted for USD 425 million. The main destinations for Colombia’s exports of auto parts are the United States, Ecuador, Peru, Mexico, and Chile. Imports represented USD $ 3.56 billion and were dominated by China (25 percent), the United States (16 percent), Japan (7.8 percent), Brazil (7.6 percent), and Mexico (five percent).
The vehicle stock in Colombia is around 5.5 million units, not including motorcycles. This means that about 11% of the population owns a vehicle (or ~1 in 10 residents). This ratio is below that of Argentina, Brazil, and Chile, indicating that the market is well below saturation point and there is potential for growth. Despite the decreased demand for automotive, major Colombian cities continue to grow. Medellin’s GDP is growing at about 4.5% per year, while its population climbs at about 2% per year. Bogota’s population is growing at about 4% per year, and its GDP contributes about 25% of Colombia’s total GDP.
Best Prospects for U.S. Exports
Aftermarket Summary
The high percentage of imported vehicles represents a good opportunity for imported parts and accessories, especially those from the United States, which are very well known and regarded nationwide.
Proximity is an advantage for U.S. firms, and while the waiting times to receive the product is less, freight costs are sometimes still expensive. Colombia total automotive parts imports in 2017 were $3.4 billion, from which 18% ($632 million) came from the United States.
Colombia’s local production of automotive parts mainly supplies OEMs with automotive and replacement parts, and while there are opportunities for U.S. companies to supply OEMs, the best prospects for U.S. suppliers is the aftermarket sector and selling to tier-one, tier-two, and tier-three suppliers.
Although infrastructure in Colombia is improving, roads are generally in poor condition, increasing the likelihood of damage to vehicles and the need for replacement parts. The average age of freight and passenger vehicles is 16.9 and 16.7 years, respectively, which increases the need for replacement parts.
Opportunities for U.S. parts suppliers include fuel injection pumps, air and oil filters, clutches, brake parts and more.
best prospects