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- Suspension shock absorbers
- Gaskets, washers and other seals of valves
- Machinery; intake air filters for internal combustion engines
- Fans
- Safety products: alarms, GPS and sound systems
- Diagnostic equipment.
Best Prospects
El Salvador maintains restrictions on the import of passenger vehicles older that eight years, buses older than 10 years and trucks older than 15 years (rom Article 1 of Decree No. 357 dated April 6, 2001). Some U.S.-origin vehicles received immediate tariff elimination, but most automobiles and light trucks are subject to back weighted 10-year tariff phase outs. For valuation of used cars, Customs uses N.A.D.A., Edmund's, and the Truck Blue Book. Currently, El Salvador is fully implementing the WTO Customs Valuation Agreement.
Every automobile must come with a Certification of Gas Emissions from the manufacturer verifying it complies with applicable environmental standards. (According to Salvadoran Transit and Transportation Law, Official Publication No. 212, Book No. 329, dated November 16, 1995). This certification needs to be authenticated in the country of origin.
Current Market Trends & Demand
The market for auto parts is divided in three: the private sector, the public transportation companies, and the government. Auto repair shops have an important role in decision making for purchasing parts and accessories for their clients in any of the above three categories of end users. The private sector includes all the consumers that provide maintenance to their vehicles as well as private and cargo companies that need their fleets working in the best shape possible.
MArket Trends
Best Prospects for U.S. Exports
Aftermarket Market Summary
There are no significant local manufacturers of auto parts and accessories and the market is mainly supplied by imports. Asian companies have gained market share as the number of Japanese, Korean, and Chinese auto manufacturers continue to grow in El Salvador. Three countries (Colombia, Brazil and Germany) make up a third of imports into the market imports but do not yet threatened the dominant position for imports held by the United States. Taiwanese companies are known for their ability to compete on price and are positioned to take a greater share of the import market. A partial list of brands currently in the market include: Amalie, ArmorAll, Turtle Wax, Mobil Oil, Goodyear, Bendix, Alloy International, Die Hard, BF Goodrich, Dayco, STP, Fleetguard, Castrol, Champion Spark Plug, American Quality Lubricant, Federal Mogul, Pennzoil, Prestone, among others.
Most of the end users of auto parts and accessories are owners of mechanic and repair shops and individual vehicles. They prefer to purchase auto parts and accessories directly from the distributor/retailer. Salvadoran distributors are extremely receptive to U.S. products. Many executives speak English and are familiar with U.S. business practices. Moreover, El Salvador’s geographic proximity to the United States provides greater access to U.S. companies and faster inventory delivery in comparison with Asian companies.