Global Automotive Export Resource Guide | Page 75

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This sector is highly competitive and price sensitive. There are no significant local manufacturers of auto parts and accessories and the market is mainly supplied by imports. Poor maintenance of streets

For More Information about exporting to El Salvador contact:

Sandra Hernandez

Commercial Specialist - Global Auto & Smart Mobility Team

U.S. Embassy San Salvador, El Salvador

[email protected]

+ (503) 2501-3007

Remanufactured parts and used parts are sold through new parts distributors as well as through smaller shops in the city center. The primary parts distributors which sell used and remanufactured parts in many cases do not carry them as a separate line of products, but rather in packages. For example, a brake system kit might include a remanufactured spare part. Rebuilt or remanufactured parts which are in heavy demand in the country are brake and clutch systems and engines for heavy duty transportation. Unlike new parts, importers of used, remanufactured and rebuilt parts, do not have to show an invoice from the manufacturer to calculate the 13% tax which is estimated by the Salvadoran Customs authorities.

Electric Drive Vehicles Market Summary

As of 2019, there are no local distribution of electric vehicles (EV). In 2019, one battery charging station was opened in El Salvador. DELSUR, an electricity distribution company, has started the promotion of electric mobility and has imported the first EV. The country does not have any regulations or subsidies for EV but is expected this market will grow in the coming years.

There is an existing proposed law that was submitted to the Legislative Assembly to regulate Electric Transportation. If the proposed law is formally approved, there will be good opportunities for U.S. electric mobility companies.

Heavy Duty Products

The importation of engines and heavy-duty products in El Salvador is done by bus and heavy equipment distributors such as Caterpillar (tractor-trailers, construction equipment, and buses), Mercedes-Benz (buses), Navistar (International 7.3 engines for vans, buses, and Ford trucks) and MAN diesel engines, among others.

The most common public buses brands are: Blue Bird, International, American Motors, Mercedes Benz and Hyundai. The Ministry of Public Transportation reported that there will be an increase of new buses imports due to the requirement to replace buses older than 20 years. The construction sector and transportation infrastructure projects are expected to keep growing in 2020 and this will increase the demand of commercial vehicles and heavy-duty parts.

best prospects

The top opportunities include spare and replacement parts for gasoline and diesel motors. For instance:

Air conditioning machines; containing a motor driven fan, other than window or wall types, incorporating a refrigerating unit

Oil petrol-filters for internal combustion engines.

Vehicle parts and accessories; n.e.c. In heading no. 8708

Radial Tires

Electric accumulators; lead-acid, of a kind used for starting piston engines, including separators.

Engines; parts, suitable for use solely or principally with spark-ignition internal combustion piston engines.

Retreaded or used pneumatic tires of rubber; solid or cushion tires, tire treads and tire flaps, of rubber

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.