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While it is likely that in the future, there will be increased opportunities in the electric cars market, the regular auto parts market will remain important for many years to come. Electric chargers are being installed by different electric companies throughout the country to push the availability of electric sources for newly imported electric cars.
Other opportunities are available for specialty equipment and equipment for cars, including Wheels and Accessories, Racing parts, Mobile Electronics and Auto Care Accessories.
The Auto parts market in Costa Rica’s local production is limited to small electrical and metal parts, batteries, electrical copper cable, hydraulic seals, filters (air/gasoline), steel leaf springs, aluminum and steel wheels, windshields, carpets, hoses, mufflers, bus bodies, and tires. Major U.S. competitors in this sector are China, Mexico, Japan, South Korea, Taiwan, Brazil, Germany and Thailand.
The surge on the imports of used low cost vehicles from Asian countries during the last years led to an increase in auto parts imports from China. Industry sources indicate that the U.S. share of the import market is expected to continue to be #1 in the Costa Rican market share for auto parts.
Demand for new US automotive brand is on the rise but has not yet reached 10% of the market. Most of the competition comes from Japan and South Korea, as the two most popular brands are Toyota and Hyundai. Chinese-manufactured vehicles are increasing their market presence through a few brands that tend to be inexpensive and offer additional extra features. The basic car sold in Costa Rica usually has no extras and due to internal local taxes, ends up costing at least twice as the price paid in the U.S.
Some of the cars on Costa Rican roads are imported as “used” from the United States, as they have extras that are not standard in new cars found in Costa Rica, as well as a lower price tag. This trend is decreasing due to good promotion of new vehicles and better support from the local banking system with financing for new cars. The automobile 10-day fair, Expo Auto, organized by the Chamber of New Car Importers (AIVEMA), has been very successful in past years helping new car dealers do a lot of business in one place.
Costa Rican importers of automotive parts and accessories purchase their products in the U.S., although a significant portion of these items are not of U.S. origin.
According to several Costa Rican importers of automotive parts, good sales opportunities continue for virtually all categories of products in this sector. High quality, durability, availability and an assortment of vehicle parts, and fast delivery are the main factors for increasing U.S. sales of these products.
Chinese-made products continue to be the second option for the Costa Ricans when importing auto parts.
market trends