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Best Export Markets For
U.S. Automobiles & Automotive Parts & Accessories, 2011
Best Export Markets for U.S. Automobiles & Automotive Parts & Accessories was compiled by Sofia Lin, under the supervision of Maurice Kogon, Director of the El Camino College Center for International Trade Development (CITD) in Hawthorne, California. The report is based largely on 2011Country Commercial Guides (CCGs) prepared by United States Commercial Service (USCS) posts abroad. All CCGs include a standard chapter “Leading Sectors for U.S. Exports.” This report drew from those CCGs which specifically recommended Automobiles & Automotive Parts & Accessories as a best prospect for U.S. exports.
CENTER FOR INTERNATIONAL TRADE DEVELOPMENT 13430 Hawthorne Blvd, Hawthorne, California 90250 USA
www.elcaminocitd.org
Phone: (310) 973-3173 Fax: (310) 973-3132 E-mail: [email protected].
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Best Export Markets for
U.S. Automobiles & Automotive Parts & Accessories, 2011
Table of Contents I. Export Market Briefs 3-4
A. Automobiles (HS 8703) B. Automotive Parts & Accessories (HS 8708)
II. Target Market Matrix 5-6
A. Automobiles (HS 8703) B. Automotive Parts & Accessories (HS 8708)
III. Market Potential Indicators 7-14
A. Top 30 U.S. Export Markets, 2007-2011 1. Automobiles (HS 8703) 8 2. Automotive Parts & Accessories (HS 8708) 9
B. Top 30 Foreign Importing Countries, 2007-2010 1. Automobiles (HS 8703) 10 2. Automotive Parts & Accessories (HS 8708) 11
C. Top 30 World Exporters & U.S. Share: 2007-2010 1. Automobiles (HS 8703) 12 2. Automotive Parts & Accessories (HS 8708) 13
D. Market Sizes & U.S. Share by Country, 2009-2010 14
IV. Best Prospect Market Assessments 15-63 Australia Bahrain Bulgaria Cambodia Canada China Colombia Czech Rep Domin Rep
El Salvador France Germany Guatemala Honduras Israel Italy Jamaica Korea
Kuwait Mexico Netherlands Panama Romania Russia Saudi Arabia Senegal Slovakia
Spain Sweden Thailand Tunisia Turkey Ukraine United King Venezuela
V. Trade Events 64
VI. Available Market Research 65-66
Appendix: Automotive Products by Schedule B/HS Code 67-69
I. Export Market Brief
A. Automobiles – HS 8703 This Market Brief provides an overview of the world market for Automobiles in the HS 8703 category, based on the latest trade statistics and market research. Export growth: U.S. exports of HS 8703 products fell from $44.8 billion in 2007 to $39.3 billion in 2010, a decrease of 12.37% over the four-year period. However, exports recovered in 2011, increasing by 24.2 % during Jan-Oct 2011 over Jan-Oct 2010. Leading Export Markets: Canada is by far the leading market for U.S. exports of HS 8703 products, ($11.8 billion in 2010). Other top markets (all valued above $1 billion) were Germany ($4.1 billion), China (3.5 billion), Saudi Arabia ($3.3 billion), Mexico (2.9 billion) and UAE ($1.5 billion). Other significant markets (above $500 million) were United Kingdom, Kuwait, Nigeria, and Australia. Fastest Growing Export Markets: The leading markets with both high and sustained growth rates for U.S. exports of HS 8703 products over the last four years (2007-2010) and continuing in the latest year (2010-11) were China, Saudi Arabia, and UAE. Other markets in the top 30 with sustained growth over the 2007-2011 period were Kuwait, Nigeria, Hong Kong, Korea, Benin, Chile, Vietnam, Brazil, Oman, Taiwan, and Israel. Leading and Fastest Growing Importing Countries: The top foreign importers of HS 8703 products in 2010 (all above $20 billion) were Germany ($35.2 billion, or 6.5% of total), France (5.7%), UK (5.6%), China (5.3%), Italy (5.2%), Belgium (4.5%), and Canada (4.1%), Other significant importers (all above $10 billion) were Australia (2.6%), Spain (2.1%), Russia (2.1%), and Saudi Arabia (2%). The leading importers with import growth rates in 2010 over 2009 were China (+101.3%, Australia (54.5%), Saudi Arabia (42.8%), Russia (33.8%), Canada (30.7%), .UK (18%), Belgium (8.6%), and France (2.2%). World Market Size & U.S. Share: Total world exports of HS 8703 products by all countries amounted to $556.3 billion in 2010. The U.S. was the 3rd largest exporter, with a 7.1% share of the total world market, topped only by Germany (23.1%) and Japan (16.2%). Other world suppliers with significant market shares were Canada (6.6%), Korea (5.7%), UK (4.8%), Spain (4.7%), Belgium (4.2%), Mexico (4.2%), and France (3.8%).
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I. Export Market Brief
B. Automotive Parts and Accessories – HS 8708 This Market Brief provides an overview of the world market for Automotive Parts and Accessories in the HS 8708 category, based on the latest trade statistics and market research. Export growth: U.S. exports of HS 8708 products fell from $34.6 billion in 2007 to $32.6 billion in 2010, a decrease of 5.7% over the four-year period. However, exports recovered in 2011, increasing by 14.7% during Jan-Oct 2011 over Jan-Oct 2010. Leading Export Markets: Canada and Mexico are by far the leading markets for U.S. exports of HS 8708 products (Canada, $14.88 billion; Mexico, $10.6 billion in 2010). Other top markets (all valued above $400 million) were Germany ($765.6 million), Japan ($645.8 million), China ($596.3 million), Brazil ($497.7 million), Venezuela $473.3 million), and Australia ($459.8 million). Fastest Growing Export Markets: The leading markets with both high and sustained growth rates for U.S. exports of HS 8708 products over the last four years (2007-2010) and continuing in 2010-11 were Mexico, Brazil, Venezuela, and Australia. Other markets in the top 30 with sustained growth over the 2007-2011 period were Chile, UAE, Italy, Saudi Arabia, Singapore, India, Colombia, and Thailand. Leading and Fastest Growing Importing Countries: The top foreign importers of HS 8708 products in 2010 (all above $12 billion) were Germany (9.7%), China (6.5%), Canada (6.4%), Spain (5.3%), Mexico (5.3%), United Kingdom (4.6%), and France (4.3%). Other significant importers (all above $5 billion) were Belgium (3.2%), Italy (2.3%), Czech Republic (2%), Japan (2%), Russia (2%), Poland (1.9%), Thailand (1.8%), Sweden (1.8%), and Slovakia (1.8%). All these countries also had import growth for HS 8708 products in 2010 over 2009, ranging from +9.5% (Spain) to a high of +96.1% (Russia). World Market Size & U.S. Share: Total world exports of HS 8708 products reached $290.7 billion in 2010. The U.S. was the 3rd largest exporter, with an 11.2% share of the total world market in 2010, topped only by Germany (14.9%) and Japan (12.1%). Other world suppliers with significant market shares were Korea (6.17%), France (5.85%), China (5.8%), Mexico (4.8%), and Italy (4.4%).
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II. Target Market Matrix A. Automobiles – HS 8703
Selection Criteria
This matrix identifies promising markets for the specified industry, based on how well the country performed against the “predictor” criteria in Columns 1-6 below. A double X in the cell indicates the country met the criterion very well; a single X indicates reasonably good performance; a blank indicates the country was lacking in that criterion. The countries with the greatest number of XX’s and X’s across the most number of criteria are likely "better" markets than the others, based on this methodology.
1 2 3 4 5 6
Australia X XX X XX Bahrain XBelgium XX X Brazil XX XX XX Canada XX X XX XX China XX XX XX XX Chile XX XX XX Dominican Rep X France XX X Germany XX XX XX Hong Kong X XX XX XIsrael X X XX Italy XX XX Japan XX XX Kuwait X X X XKorea X X XX Mexico XX X XX XNetherlands X X Nigeria X X XX XPoland X Russia XX X XX Saudi Arabia XX X X X XX South Africa X X XX Spain X Sweden XX Taiwan XX X United Arab Republic XX X X XX United Kingdom X XX XX XX XVietnam X X
Key: Columns/Criteria 1. Large U.S. export market, latest year 2. Fast growing export market, latest 4 years 3. Continued export growth, latest year
4. Large importing country, latest year 5. Fast growing importer, latest year 6. Cited by USCS as “best” export market
II. Target Market Matrix B. Automotive Parts and Accessories – HS 8708
Selection Criteria
This matrix identifies promising markets for the specified industry, based on how well the country performed against the “predictor” criteria in Columns 1-7 below. A double X in the cell indicates the country met the criterion very well; a single X indicates reasonably good performance; a blank indicates the country was lacking in that criterion. The countries with the greatest number of XX’s and X’s across the most number of criteria are likely "better" markets than the others, based on this methodology. .
1 2 3 4 5 6 7
Australia X X XX XX X XXBahrain XXBelgium X X XX X Brazil X X XX Canada XX X XX XX XXChina X XX XX XX XXChile X X XX Czech Republic X X XXColombia X XX XX XXDominican Rep XX XXEl Salvador XX XXFrance X XX X XXGermany X XX XX XX XXGuatemala XX XXIsrael XXIndia XX XX Italy X X X X XXJamaica XXJapan X X XX Kuwait XX XXKorea X XX X XX XXMexico XX X XX XX XX XX XXNetherlands X XX XXPanama XX XXPoland X XX Romania XX XX XXRussia X XX X XXSaudi Arabia X X XXSingapore X XX X Slovakia X XX X XXS. Africa XX X XX Spain X XX X XXSweden X XX Thailand X XX X XX XXUAE XX X United Kingdom X XX XX XX XXVenezuela XX XX
Key: Columns/Criteria
1. Large U.S. export market, latest year 2. Fast growing export market, latest 4 years 3. Continued export growth, latest year 4. Large importing country, latest year
5. Fast growing importer, latest year 6. Strong U.S. share of import market 7. Cited by USCS as “best” export market
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III. Market Potential Indicators A. Top 30 U.S. Export Markets (Source: U.S Census Bureau). These tables show the leading and fastest growing export destinations over the 2007-11 period:
1. Automobiles (HS8703) 2. Automotive Parts & Accessories (HS8708).
B. Top 30 World Importers (Source: United Nations COMTRADE). These tables show the leading and fastest growing world importers over the 2007-10 period:
1. Automobiles (HS8703) 2. Automotive Parts & Accessories (HS8708).
C. Top 30 World Exporters & U.S. Market Share (Source: United Nations COMTRADE). These tables show the U.S. and competitor-country shares of total world exports over the 2007-10 period:
1. Automobiles (HS8703) 2. Automotive Parts & Accessories (HS8708).
D. Market Sizes & U.S. Share, 2008 - 2010, by Country. This table shows each “best prospect” country’s total market, total imports, and imports from the U.S. and the U.S market share for Automotive Parts and Accessories. Source: U.S. Commercial Staff in each country.
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III. Market Potential Indicators
A. Top 30 U.S. Export Markets, 2007-2011, By Country 1. Automobiles (HS8703)
2007 2008 2009 2010 Jan-Oct
2010 Jan-Oct
2011
% Change 2007-10
% Change
YTD 2010-11
Country In 1,000 Dollars Canada 15,800,638 15,315,264 8,812,970 11,811,717 9,826,035 11,017,114 -25.25% 12.12% Germany 7,190,080 8,524,011 4,726,019 4,081,195 3,272,180 4,700,547 -43.24% 43.65% China 850,135 1,110,929 1,090,886 3,487,836 2,792,587 4,206,401 310.27% 50.63% Saudi Arabia 2,137,333 3,299,201 1,941,802 3,307,262 2,635,724 2,965,919 54.74% 12.53% Mexico 3,704,210 4,061,213 1,944,402 2,882,634 2,365,846 2,624,611 -22.18% 10.94% UAE 1,361,798 2,260,250 972,722 1,463,852 1,188,643 1,364,682 7.49% 14.81% UK 1,428,989 1,167,390 632,567 999,391 780,621 1,210,739 -30.06% 55.10% Kuwait 623,840 773,709 468,778 723,388 584,769 594,735 15.96% 1.70% Nigeria 381,694 709,232 541,109 653,153 513,831 682,514 71.12% 32.83% Australia 654,363 702,184 369,313 630,271 512,874 749,243 -3.68% 46.09% Lebanon 237,670 564,296 635,428 539,256 468,930 293,343 126.89% -37.44% Hong Kong 150,378 246,602 255,242 476,344 385,714 558,710 216.76% 44.85% Domin. Rep 274,698 280,845 281,342 416,172 330,618 302,711 51.50% -8.44% Japan 520,418 549,164 294,463 383,366 299,718 470,210 -26.33% 56.88% Korea 349,959 376,169 165,077 362,115 302,942 356,638 3.47% 17.72% Benin 205,099 385,375 221,023 350,077 283,127 387,708 70.69% 36.94% Jordan 89,624 230,290 383,064 348,199 300,916 207,384 288.51% -31.08% Chile 155,704 283,249 154,836 330,008 264,411 349,563 111.95% 32.20% Lithuania 322,359 400,375 164,863 284,423 204,622 523,313 -11.77% 155.75% Vietnam 218,669 264,878 335,676 258,618 189,291 211,385 18.27% 11.67% Finland 946,741 1,442,752 106,539 249,340 197,566 362,811 -73.66% 83.64% Brazil 54,040 151,510 93,839 247,690 181,308 275,668 358.35% 52.04% Netherlands 429,024 423,186 196,386 218,627 178,237 202,642 -49.04% 13.69% South Africa 380,470 255,690 111,236 216,811 162,245 199,556 -43.01% 23.00% Qatar 265,607 290,890 124,852 205,571 168,317 165,007 -22.60% -1.97% Oman 188,423 341,566 97,384 192,194 155,580 180,498 2.00% 16.02% Russia 706,002 999,230 49,523 189,264 147,343 389,322 -73.19% 164.23% Taiwan 45,968 47,663 64,534 188,085 158,135 185,632 309.17% 17.39% Israel 105,515 195,309 120,910 185,548 137,758 167,764 75.85% 21.78% Italy 507,982 352,711 177,385 167,912 119,570 296,383 -66.95% 147.87% Top 30 Total 40,287,431 46,005,132 25,534,172 35,850,320 29,109,459 36,202,752 -11.01% 24.37% All Other 4,505,150 4,701,933 2,826,184 3,447,434 2,742,443 3,361,259 -23.48% 22.56% World Total 44,792,581 50,707,065 28,360,355 39,297,753 31,851,902 39,564,011 -12.27% 24.21%
Source U.S. Census Bureau
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III. Market Potential Indicators A. Top 30 U.S. Export Markets, 2007-2011, By Country
2. Automotive Parts & Accessories (HS8708)
2007 2008 2009 2010 Jan-Oct
2010 Jan-Oct
2011
% Change 2007-10
% Change
YTD 2010-11
Country In 1,000 Dollars Canada 18,449,488 15,717,413 11,101,797 14,884,447 12,692,746 13,600,781 -19.32% 7.15%
Mexico 8,018,276 8,298,765 7,173,268 10,637,063 8,753,448 10,847,789 32.66% 23.93%
Germany 855,423 850,836 691,019 765,556 643,782 625,939 -10.51% -2.77%
Japan 997,834 950,034 491,057 645,825 552,824 502,835 -35.28% -9.04%
China 697,431 480,702 496,214 596,258 488,299 568,447 -14.51% 16.41%
Brazil 489,402 468,006 286,635 497,675 420,856 472,710 1.69% 12.32%
Venezuela 403,289 517,316 495,524 473,290 398,225 461,851 17.36% 15.98%
Australia 421,520 410,495 267,710 459,793 383,020 530,408 9.08% 38.48%
Korea 409,036 264,573 161,313 285,196 204,634 394,932 -30.28% 92.99%
UK 360,168 333,321 175,860 278,579 227,782 297,069 -22.65% 30.42%
France 314,923 276,824 176,301 234,091 193,452 137,907 -25.67% -28.71%
Chile 135,239 127,081 111,912 198,618 160,419 234,319 46.86% 46.07%
Belgium 289,772 188,871 92,490 168,874 141,647 172,110 -41.72% 21.51%
UAE 72,860 98,825 108,405 131,444 112,245 124,125 80.41% 10.58%
S. Africa 140,120 148,340 83,597 124,693 99,709 120,974 -11.01% 21.33%
Italy 89,201 98,377 85,379 122,430 105,561 121,678 37.25% 15.27%
S. Arabia 111,232 146,959 138,016 119,846 102,389 111,526 7.74% 8.92%
Sweden 136,535 136,519 65,030 115,566 96,184 92,468 -15.36% -3.86%
Singapore 79,447 115,701 64,293 108,805 90,401 133,310 36.95% 47.47%
Argentina 170,117 184,820 115,829 108,251 97,673 88,839 -36.37% -9.04%
India 51,472 68,395 47,043 93,994 78,777 110,807 82.61% 40.66%
Spain 180,016 124,944 62,139 89,002 74,337 79,835 -50.56% 7.40%
Austria 481,816 251,887 82,531 82,999 72,523 37,630 -82.77% -48.11%
Egypt 36,270 51,756 27,587 78,138 64,801 32,859 115.43% -49.29%
Netherlands 124,019 99,013 72,935 77,143 66,088 79,984 -37.80% 21.03%
Colombia 59,109 61,406 88,463 76,559 62,603 91,591 29.52% 46.30%
Guatemala 63,304 51,981 59,180 64,255 52,664 50,382 1.50% -4.33%
Afghanistan 3,718 15,024 36,981 60,784 56,267 30,126 1534.86% -46.46%
Benin 4,516 15,433 23,133 57,078 48,001 46,805 1163.91% -2.49%
Thailand 47,996 51,024 27,326 52,622 44,555 61,197 9.64% 37.35%
Top 30 Total 33,693,549 30,604,640 22,908,968 31,688,874 26,585,913 30,261,236 -5.95% 13.82%
All Other 884,493 1,144,177 825,947 927,874 764,171 1,115,774 4.90% 46.01%
Total 34,578,042 31,748,817 23,734,915 32,616,749 27,350,084 31,377,010 -5.67% 14.72%
Source U.S. Census Bureau
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III. Market Potential Indicators
B. Top 30 World Importers, By Country, 2007-2010 1. Automobiles (HS8703)
Value in $1,000s
2007 2008 2009 2010
% Change 2009-10
% Share 2009-10
USA 136,300,944 127,934,961 82,234,154 116,768,040 42.0% 21.5%Germany 44,190,917 43,711,836 38,991,294 35,208,871 -9.7% 6.5%France 34,735,664 36,803,577 30,481,068 31,166,550 2.2% 5.7%UK 44,008,485 36,493,248 25,842,601 30,506,846 18.0% 5.6%China 9,843,513 14,060,035 14,367,865 28,921,282 101.3% 5.3%Italy 38,025,640 34,656,487 29,673,592 28,048,487 -5.5% 5.2%Belgium 26,425,561 28,603,644 22,679,477 24,619,577 8.6% 4.5%Canada 25,483,925 25,399,129 17,072,740 22,321,127 30.7% 4.1%Australia 11,481,370 12,507,092 9,252,914 14,300,094 54.5% 2.6%Spain 29,105,907 22,187,402 12,921,726 11,608,908 -10.2% 2.1%Russia 21,333,779 30,266,002 8,513,847 11,391,580 33.8% 2.1%Saudi Arabia 7,761,869 9,016,862 7,449,232 10,639,867 42.8% 2.0%Netherlands 10,384,352 10,979,200 8,462,158 9,762,579 15.4% 1.8%Switzerland 7,410,672 8,378,197 7,175,804 8,965,339 24.9% 1.6%Brazil 3,121,239 5,342,624 5,466,423 8,304,981 51.9% 1.5%Austria 7,904,884 8,518,728 7,312,286 7,909,001 8.2% 1.5%Turkey 4,748,663 4,554,327 4,266,788 6,821,775 59.9% 1.3%Sweden 7,281,048 6,146,437 4,528,917 6,643,896 46.7% 1.2%Mexico 9,436,330 8,342,302 4,755,050 6,461,172 35.9% 1.2%Japan 7,692,665 6,796,331 4,583,680 6,443,005 40.6% 1.2%UAE 7,243,410 11,033,277 3,529,955 6,330,776 79.3% 1.2%Poland 5,733,026 8,005,272 5,119,179 5,526,963 8.0% 1.0%Portugal 4,186,012 4,527,605 3,416,090 4,689,061 37.3% 0.9%Argentina 2,709,630 3,874,735 2,513,581 4,482,705 78.3% 0.8%Norway 4,470,439 3,944,573 3,108,589 4,336,677 39.5% 0.8%Nigeria 913,779 1,652,533 2,745,911 4,137,604 50.7% 0.8%South Africa 4,410,321 2,749,685 2,335,842 4,067,205 74.1% 0.7%Chile 1,707,344 2,136,887 1,193,647 3,131,973 162.4% 0.6%Israel 2,298,371 2,652,360 2,444,683 3,056,567 25.0% 0.6%Korea 2,455,732 2,477,836 1,882,404 2,902,305 54.2% 0.5%Top 30 Subtotal 522,805,491 523,753,184 374,321,497 469,474,813 25.4% 86.3%All Other 98,582,180 105,656,975 61,865,222 74,457,289 20.4% 13.7%World Total 621,387,671 629,410,159 436,186,719 543,932,102 24.7% 100.0%Source: UN COMTRADE
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III. Market Potential Indicators
B. Top 30 World Importers, By Country, 2007-2010 2. Auto Parts & Accessories (HS8708)
Value in $1,000s
2007 2008 2009 2010
% Change 2009-10
% Share 2010
USA 46,460,100 41,865,086 29,892,786 43,390,811 45.2% 15.6%Germany 26,642,829 29,625,127 22,385,523 27,064,323 20.9% 9.7%China 10,638,435 11,079,803 12,394,188 17,984,581 45.1% 6.5%Canada 20,797,740 17,833,044 13,129,886 17,835,466 35.8% 6.4%Spain 19,728,007 17,520,906 13,499,851 14,786,412 9.5% 5.3%Mexico 12,140,627 13,256,968 10,793,010 14,774,621 36.9% 5.3%UK 18,553,622 15,576,871 9,555,373 12,937,152 35.4% 4.6%France 15,328,308 15,906,785 10,994,865 12,105,578 10.1% 4.3%Belgium 10,731,782 11,403,159 7,836,175 9,030,529 15.2% 3.2%Italy 8,012,141 8,445,979 5,713,177 6,293,329 10.2% 2.3%Czech Republic 5,015,058 5,653,605 4,854,550 5,673,963 16.9% 2.0%Japan 5,334,489 6,417,650 3,948,229 5,537,651 40.3% 2.0%Russia 3,781,508 5,288,431 2,802,673 5,496,866 96.1% 2.0%Poland 4,534,996 6,247,794 4,446,448 5,368,477 20.7% 1.9%Thailand 2,809,369 3,412,066 2,857,326 5,065,498 77.3% 1.8%Sweden 6,593,892 6,503,740 3,596,864 5,039,286 40.1% 1.8%Slovakia 5,114,819 5,344,206 3,759,588 5,024,450 33.6% 1.8%Brazil 3,572,858 4,982,138 3,652,396 4,928,500 34.9% 1.8%Turkey 4,868,019 5,173,791 3,401,047 4,433,075 30.3% 1.6%Korea 3,074,308 3,408,493 2,623,743 3,901,204 48.7% 1.4%Netherlands 4,523,469 5,018,616 3,167,537 3,811,020 20.3% 1.4%Austria 5,156,690 4,868,264 3,021,070 3,737,057 23.7% 1.3%Argentina 2,280,922 2,907,515 2,133,188 3,360,729 57.5% 1.2%Portugal 2,082,350 2,201,446 2,049,172 2,630,996 28.4% 0.9%Hungary 2,800,030 2,976,034 2,018,806 2,357,981 16.8% 0.8%India 1,337,876 2,328,236 2,126,017 2,162,759 1.7% 0.8%Australia 1,975,032 2,179,208 1,582,828 2,115,781 33.7% 0.8%Indonesia 839,962 2,547,271 1,031,587 2,019,052 95.7% 0.7%Romania 1,336,758 1,634,828 1,545,074 1,914,389 23.9% 0.7%Singapore 1,515,751 1,695,150 1,468,913 1,735,656 18.2% 0.6%Top 30 Subtotal 257,581,747 263,302,210 192,281,890 252,517,192 31.3% 90.6%All Other 26,953,187 29,033,111 22,846,073 26,250,489 14.9% 9.4%World Total 284,534,934 292,335,321 215,127,963 278,767,681 29.6% 100.0%Source: UN COMTRADE
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III. Market Potential Indicators
C. Top 30 World Exporters & U.S. Market Share, 2010 1. Automobiles (HS8703)
Value in $1,000s
2007 2008 2009 2010
% Change 2009-10
% Share 2010
Germany 138,802,727 140,158,091 102,420,301 128,670,928 25.6% 23.1%Japan 108,147,197 115,440,406 62,268,308 90,379,365 45.1% 16.2%USA 44,792,581 50,707,065 28,360,355 39,297,753 38.6% 7.1%Canada 37,733,640 32,589,236 23,342,860 36,901,004 58.1% 6.6%Korea 34,482,841 31,287,529 22,399,196 31,774,133 41.9% 5.7%UK 28,917,222 28,300,940 18,494,629 26,489,533 43.2% 4.8%Spain 29,815,260 30,146,638 26,087,218 26,011,192 -0.3% 4.7%Belgium 32,259,686 30,932,445 23,989,150 23,487,899 -2.1% 4.2%Mexico 18,684,439 21,606,731 15,103,251 23,091,138 52.9% 4.2%France 30,988,064 27,747,372 19,901,642 21,088,981 6.0% 3.8%Czech Rep 10,062,434 10,863,019 10,596,240 12,489,973 17.9% 2.2%Slovakia 10,120,171 10,904,086 7,617,371 9,210,850 20.9% 1.7%Poland 7,766,306 9,941,774 9,671,791 8,812,619 -8.9% 1.6%Italy 11,608,157 10,759,165 7,946,500 8,539,845 7.5% 1.5%Thailand 3,853,716 5,228,187 4,090,824 7,027,645 71.8% 1.3%Turkey 6,839,691 7,474,402 6,087,492 6,210,283 2.0% 1.1%Sweden 10,279,559 8,445,156 4,369,096 5,318,697 21.7% 1.0%India 1,283,439 2,219,825 2,940,806 4,510,553 53.4% 0.8%Brazil 4,653,470 4,915,737 3,244,911 4,416,140 36.1% 0.8%Hungary 5,786,675 6,760,917 3,932,818 4,150,902 5.5% 0.7%South Africa 2,635,454 4,535,552 3,062,471 4,116,935 34.4% 0.7%Austria 8,485,908 6,617,179 3,449,098 4,063,396 17.8% 0.7%Argentina 2,177,064 2,829,925 2,759,949 3,923,083 42.1% 0.7%Romania 1,082,005 1,431,433 2,357,476 2,711,000 15.0% 0.5%Slovenia 3,104,735 3,030,799 2,634,150 2,514,007 -4.6% 0.5%Netherlands 1,824,353 2,105,883 2,587,519 2,356,446 -8.9% 0.4%Portugal 2,591,152 2,646,357 1,998,152 2,346,804 17.4% 0.4%China 2,810,583 2,993,416 1,389,071 2,205,451 58.8% 0.4%Australia 2,392,995 3,103,553 1,242,355 1,615,282 30.0% 0.3%Hong Kong 996,090 1,370,070 1,372,629 1,165,398 -15.1% 0.2%Top 30 Subtotal 604,977,614 617,092,888 425,717,629 542,186,235 27.4% 97.5%All Other 17,648,279 19,317,986 9,321,234 14,115,905 51.4% 2.5%World Total 622,625,893 636,410,874 435,038,863 556,302,140 27.9% 100.0%Source: UN COMTRADE
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III. Market Potential Indicators
C. Top 30 World Exporters & U.S. Market Share, 2010 2. Auto Parts & Accessories (HS8708)
Value in $1,000s
2007 2008 2009 2010
% Change 2009-10
% Share 2010
Germany 42,982,286 45,613,827 33,120,375 43,171,405 30.3% 14.9%Japan 28,429,338 29,431,036 24,657,161 35,072,686 42.2% 12.1%USA 34,578,042 31,748,817 23,734,915 32,616,749 37.4% 11.2%Korea 11,657,557 13,096,222 10,925,988 17,914,246 64.0% 6.2%France 19,173,752 19,603,904 14,912,766 16,978,647 13.9% 5.8%China 12,173,449 14,584,363 11,509,181 16,645,149 44.6% 5.7%Mexico 11,758,391 11,750,648 9,229,367 13,835,301 49.9% 4.8%Italy 15,524,094 16,585,242 10,367,868 12,884,492 24.3% 4.4%Spain 12,811,281 12,500,280 9,015,592 10,260,302 13.8% 3.5%Canada 13,377,280 10,503,582 6,119,354 8,797,906 43.8% 3.0%Czech Rep 8,146,485 9,573,396 7,409,185 8,530,155 15.1% 2.9%Poland 6,733,221 8,376,031 6,660,250 7,902,284 18.6% 2.7%Belgium 7,798,015 8,077,426 5,378,775 6,253,297 16.3% 2.2%UK 7,788,827 7,048,488 4,911,847 5,555,908 13.1% 1.9%Sweden 5,068,360 5,108,511 3,028,468 4,409,539 45.6% 1.5%Thailand 3,397,759 4,094,798 3,003,376 4,155,972 38.4% 1.4%Austria 4,343,733 4,686,952 3,386,741 3,909,086 15.4% 1.3%Netherlands 3,216,200 3,844,763 2,776,623 3,413,125 22.9% 1.2%Brazil 3,186,330 3,510,265 2,417,430 3,381,638 39.9% 1.2%Hungary 3,556,939 3,690,338 2,660,385 3,280,948 23.3% 1.1%Taiwan 2,882,046 2,825,520 2,381,864 2,968,259 24.6% 1.0%Romania 1,936,428 2,298,210 2,004,656 2,681,229 33.8% 0.9%Turkey 2,531,071 2,876,613 1,997,283 2,673,615 33.9% 0.9%Singapore 1,919,767 2,252,087 2,097,452 2,446,807 16.7% 0.8%Portugal 2,144,386 2,226,639 1,919,095 2,360,775 23.0% 0.8%Slovakia 1,705,411 2,123,013 1,787,254 2,317,041 29.6% 0.8%India 1,356,829 1,591,605 1,167,859 1,923,628 64.7% 0.7%Philippines 1,671,685 2,052,025 1,422,697 1,670,451 17.4% 0.6%Argentina 1,117,608 1,262,053 901,331 1,226,597 36.1% 0.4%Indonesia 922,530 1,088,430 844,475 1,175,100 39.2% 0.4%Top 30 Subtotal 273,889,100 284,025,084 211,749,613 280,412,337 32.4% 96.5%All Other 11,897,188 11,993,158 8,150,775 10,277,957 26.1% 3.5%World Total 285,786,288 296,018,242 219,900,388 290,690,294 32.2% 100.0%
Source: UN COMTRADE
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III. Market Potential Indicators
D. Market Sizes & U.S. Share, 2009 – 2010, by Country Automotive Parts and Accessories
(Values in $Millions) The Table below provides comparative data on total market, import market, and imports from the U.S. for 24 countries considered “best prospects” for U.S. exports of Automotive Parts and Accessories. The countries are listed in alphabetic order, not in rank order. The data are based on local sources and reflect best estimates of USCS commercial officers each country. Statistical accuracy and comparability to other sources (e.g., USDOC Bureau of Census”) are affected by a number of factors, including lack of published figures in certain markets, variances in data collection techniques, sources of data, and industry definitions.
Country Total Market Total Imports Imports from US % U.S. Share
2009 2010 %
Change 2009 2010 %
Change 2009 2010 %
Change 2010 Australia 9,295 9,315 0.22% 5,360 5,450 1.68 779 794 1.93% 14.57%Colombia 504 631 25.10% 580 740 27.60 152 194 27.75% 26.18%Czech Rep 13,480 11,000 -18.40% 9,320 10,000 7.30 196 200 2.04% 2.00%Domin Rep 145 149 2.27% 143 148 3.21 86 96 11.74% 64.98%El Salvador 135 151 11.85% 139 156 12.23 43 45 4.65% 28.85%France 26,057 26,265 0.80% 19,837 19,996 0.80 599 603 0.67% 3.02%Germany 38,600 36,375 -5.76% 11,500 8,000 -30.43 2,000 2,200 10.00% 27.50%Guatemala 268 289 8.00% 287 310 8.01 102 110 8.00% 35.53%Honduras 496 546 10.00% 496 546 10.00 266 292 9.78% 53.48%Italy 44,500 53,400 20.00% 11,435 13,700 19.81 174 220 26.44% 1.61%Kuwait 150 153 2.00% 150 153 2.00 49 45 -8.16% 29.41%Mexico 59,000 71,000 20.34% 18,500 26,000 40.54 15,900 10,360 -34.8% 39.85%Netherlands 8,327 8,707 4.56% 17,540 19,233 9.65 355 375 5.65% 1.95%Panama 123 135 9.76% 123 135 9.76 52 55 6.59% 40.74%Romania 2 2 3.03% 2 2 6.06 7 3 -61.6% 155.80%Russia 15,200 18,800 23.68% 5,500 7,500 36.36% 800 850 6.25% 11.33%Senegal N/A N/A N/A 264 276 4.55% 26 21 -18.3% 7.61%Slovakia 8,675 7,686 -11.4% 8,041 6,118 -23.9% 11,289 7,025 -37.8% 114.83%Korea 28,790 35,124 22.00% 3,379 4,122 22.00% 248 302 22.00% 7.33%Sweden 10,010 9,624 -3.86% 9,744 9,355 -3.99% 352 332 -5.68% 3.55%Turkey 11,200 10,100 -9.82% 9,000 7,900 12.22% 75 80 6.67% 1.01%Ukraine 2,600 2,800 7.69% 1,400 1,500 7.14% 111 127 14.41% 8.47%UK 22,900 23,300 1.75% 15,100 15,200 0.66% 390 400 2.56% 2.63%Venezuela 2,633 2,300 12.65% 130 100 -23.1% 1,768 1,300 -26.5% 1300.00%
* 2009 – 2010 Source: U.S. Commercial Staff in each country.
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IV. Best-Prospect Market Assessments
Following are overviews of “best prospect” markets for Automobiles &Automotive Parts & Accessories, based on observations of U.S. Commercial Service (USCS) posts in each country. The countries appear in alphabetical order. For more detailed market research on Automobiles & Automotive Parts & Accessories in these and other specific markets, see relevant Market Research Reports listed in Chapter VI. For general commercial and economic information on individual countries, see the relevant Country Commercial Guides (CCGs).
AUSTRALIA Overview The economic crisis had a short-term negative impact on capital-equipment purchases within the automotive industry. The slowdown of new car sales as a result of the world economic crisis has had a positive impact on the aftermarket industries as more consumers look to improve and repair their existing motor vehicles. Adopted from industry experts, the forecasts above indicate a decrease in local production, which will have a positive impact on imports. The Federal Chamber of Automotive Industries (FCAI) reports that in calendar year 2010, sales of passenger vehicles, SUV’s and commercial vehicles reached 1,035,574, a 10.5% increase (98,246 vehicles) over 2009. As of November 2010, market shares were Toyota (21.1%), GM Holden (12.6%), Ford (10.3%), Mazda (8.3%), and Hyundai (7.1%). Of these companies, GM Holden, Ford, and Toyota have manufacturing facilities in Australia. Sales of light and small passenger vehicles lead all sales of new cars, followed by SUV vehicles In 2010, 105,766 motorcycles, scooters and all-terrain vehicles were sold, a decrease of 8.9% on 2009 figures and a 13.6% decrease from 2008 sales The global financial crisis impacted sales of motorcycles in Australia more than it did auto sales as reflected by the slump in sales from 2008 through to 2010. Analysts predict that motorcycle sales will bounce back in 2011. Japanese companies Honda, Yamaha, and Suzuki are the leading manufacturers of motorcycles in the local market. Australia has the third-highest vehicle ownership rate in the world with over 600 vehicles per 1,000 people. Growth in Australia’s aftermarket has averaged above 5% over the past ten years. The aftermarket for replacement parts and accessories is a significant element of Australian component producers' total sales. This part of the market is estimated to be worth approximately $5 billion for replacement parts an $6 billion for accessories and is split fairly evenly between local producers and imports. According to the World Trade Atlas 2008, the United States is the leading supplier, accounting for 19.7% of imports or $548 million, while Japan comes second with 17.4%. The U.S.-Australia FTA has resulted in the elimination of tariffs across most U.S. automotive imports. This fact coupled with the larger size of the U.S. industry has contributed to a 10.4% increase in U.S. exports to Australia since its inception. Future growth potential may be limited by the
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modest size of the Australian market. Although the United States is Australia’s largest import source of these components, U.S. exports to Australia represent less than 2% of total U.S. exports of motor-vehicle parts. Before a road vehicle can be registered for the first time in Australia, it must comply with the Federal Motor Vehicle Standards Act 1989. The Motor Vehicle Standards Act requires vehicles as well as automotive parts and accessories to meet the national standards that cover a variety of safety and emission requirements. These national standards are currently known as the Australian Design Rules (ADRs). Compliance with the ADRs is overseen by the Department of Transport and Regional Services (DOTARS); http://www.dotars.gov.au. The Australian Quarantine and Inspection Service (AQIS) inspect secondhand automotive parts. Therefore some U.S. companies may also have to comply with the AQIS standards; http://www.aqis.gov.au. Best Products/Services The Australian automotive market provides good opportunities for U.S. suppliers of both specialty aftermarket equipment/accessories as well as the necessary aftermarket parts such as; 4WD parts and accessories, street performance parts and accessories, and automotive tools. In general, high-quality, innovative, environmentally-conscious and competitively-priced parts and accessories have strong demand. Opportunities A prime area of opportunity in Australia’s automotive sector is for accessories and replacement parts for light and medium-sized family cars and sports utility vehicles. Parts and accessories for routine auto maintenance, street performance, and high-end cosmetic auto enhancement also offer considerable opportunity for U.S. firms. Sales are generally through agents or distributors. Resources Australian Automotive Aftermarket Association: http://www.aaaa.com.au Australian Customs Service: http://www.customs.gov.au Australia United States Free Trade Agreement Business Group (AUSTA): http://www.austa.net Department of Transport and Regional Services: http://www.dotars.gov.au Federal Chamber of Automotive Industries: http://www.fcai.com.au Federation of Automotive Parts Manufacturers: http://www.fapm.com.au BAHRAIN Overview The market for American passenger cars, especially for larger model vehicles like mini-vans and SUVs, continues to grow. Compact and economy models are also popular. It is expected that U.S. automobile exports to Bahrain will remain strong through 2011. U.S. car dealerships in Bahrain attribute strong sales to the FTA and the relatively weakened value of the dollar. Bahrainis value U.S. cars for their safety, comfort, interior design, and capacity to accommodate large families. U.S. car sales also benefit from an overall expanding market. According to the Bahrain General Directorate of Traffic, 311,000 vehicles were registered in Bahrain in 2008, and registration is increasing 7% per year on average, suggesting an estimated 332,000 vehicle registrations in 2009.
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The U.S. dollar value has reduced the cost of U.S. manufactured vehicles in relation to European, and Japanese models. The overall market for U.S.-made auto parts is declining due to Asian and Saudi competition. However, there are opportunities in niche markets (brake pads, oil filters) and auto accessories (wax, lubricants) where American products are preferred for their high quality. Resources U.S. Embassy Bahrain Commercial Section www.buyusa.gov/bahrain/en BULGARIA Overview From 1996 until 2009, the market for new cars in Bulgaria demonstrated a stable upward trend. In 2009, as in many other countries, the financial crisis hit negatively impacted the sale of new automobiles. The overall picture for the automotive sector in 2010 was bleak; however prospects for 2011 are more positive. When reviewing the automotive market from January to November 2010, the situation was rather negative:
The number of new car sales January through November 2010 was 16 560, which is 30.1% less than the same period in 2009
The number of buses and trucks sold January through November 2010 was 767, which is 18.9% less than the same period in 2009.
In January 2010, the Bulgarian government responded to the car importers’ requirements for concurrence with the EU rules for eliminating level excise duties on cars with engine capacity of over 166 horse power. Consequently, the Bulgarian Union of Car Importers expects the automotive market recovery and stabilization to be realized by the end of 2011. For the first half of 2010 Toyota remained the top selling brand with 893 vehicles sold, which comprised 10.38% of the total vehicles market share in Bulgaria. Next in the ranking list are Ford with 857 cars sold with 9.96% market share, Peugeot with 788 cars sold with 9,16% market share and VW with 736 cars sold with 8.55% market share. The last on the 10-companies’ list of best-selling car brands in 2010 is Opel with 476 cars sold and 5.53% market share. The market for heavy duty and professional vehicles in 2010 declined by another 29% compared to 2009 amounting to 351 vs. 498 for the same period in 2009. The motorcycles market declined by 27.6% compared to 2009. On a positive note, in November 2010, the first signs of recovery appeared when the Bulgarian automotive market registered growth compared to November 2009. New-car sales in November 2010 increased by 9.7%, in real numbers amounting to 1794 compared to the sales in November 2009 – amounting to 1636. The situation was similar for buses and trucks, which registered a 117.2% growth rate compared to the same period in 2009. Overall, the automotive market grew by 13.3% in November 2010 compared to 2009.
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The reasons behind the growth are as follows. Hopefully, the growth trend will be sustainable in 2011.
The business climate in the transportation sector was improving, in particular road infrastructure.
The basis for comparison is basically low – sales levels in November 2009 when the crisis hit severely were unrealistically low.
The pricing policy of many new car dealers significantly changed for the last two months of 2010 when they offered incredible discounts and promotions.
Almost 18% of the cars registered in Bulgaria are older than 10 years. Since 2000, Bulgarian families prefer to buy cars not older than 10 years. Now almost 70% of Bulgarian families own a car and almost 80% of the firms with business activities have motor pools, which depending on their activities, consists of cars, vans, minibuses, jeeps and light trucks. The automotive aftermarket and collision repair car business is one of the fastest growing in Bulgaria. The growth in numbers of European cars determines the need for more sophisticated service and car body repair equipment, both mechanical and electronic, paint products and application methods at an affordable price. The official distributors of all new car models maintain warranty service and repair stations within their company structures. The new, sophisticated electronic car equipment requires special analyzers, testers and experts. Best Products/Services
Consumables, including oil and air filters, wiper blades, rubber blades, hoses, gaskets and rings
Engine parts, brake parts, exhaust system parts, car body parts Accessories such as wheel covers, car/truck bed covers, car batteries, exterior accessory
lights Auto security products such as alarms, steering wheel locks Service equipment for electronic diagnosis, monitoring, testing and analyzing, wheel
balancing, tire changing, oil changing, battery chargers, quick repair kits, tools, paints and auto cosmetics, tuning equipment and accessories, and service equipment for electronic diagnosis.
Resources
Union of Car Importers in Bulgaria (UCIB) – www.svab.bg Expoteam (organizes the automotive market & aftermarket show in Sofia) -
www.expoteam.org Bulgarreklama (organizes the International Plovdiv Fair) – www.bulgarreklama.bg Commercial Specialist Uliana Kanelli, [email protected]
CAMBODIA Overview Cambodia has no municipal public transportation. The majority of people travel via motorbike or car. With Cambodia‘s growing prosperity, automobile ownership is rapidly increasing. The vast
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majority of cars are imported second-hand vehicles. The most popular models are 4-wheel drive vehicles and mid-sized Japanese sedans; the latter are usually U.S.-made models. All car imports must be left-hand drive. The actual size of the automobile market is difficult to estimate due to the routine occurrence of smuggling. However a local company estimates that Cambodia's demand for new vehicles could be around 2,000 cars a year. The U.S. appears to be the largest supplier of used vehicles. U.S. export of new and used passenger cars to Cambodia accounted for some $114 million in 2008. A number of companies sell used and new cars in Phnom Penh. Ford has a local dealership, and the market also supports Chevrolet, Mercedes, Ssanyong, Nissan, Subaru, Great Wall Motor, Hyundai and Peugeot dealers as well as representatives of all major Japanese companies such as Toyota, Nissan, and Mitsubishi. Best Products/Services Automobile parts and accessories from the U.S. are available in Cambodian markets, particularly for Toyota, Ford, and General Motors vehicles. Limited availability of parts for other companies’ models has led customers to choose Toyotas because parts are available and affordable. As with other products, U.S. auto parts have a reputation for quality and attract a higher price than parts produced in Thailand, Taiwan, or other Asian countries. CANADA Overview Canada represents the second largest automotive market in North America. There were 1.48 million units (cars, trucks, and motorcycles) sold in Canada during 2009. Canadian automotive imports totaled $24 billion in 2009 -- more than half of this came from the United States. Canada imported automotive-aftermarket products worth $7 billion in 2009. Canadian automotive manufacturers supply 25% of the North American market. New U.S. light vehicles sales increased market share by 2% during Jan-Jul 2010 (from 41% to 43%), ending a long decline in market share over the past 5 plus years. Investment in modernizations and new facilities for 2010 – 2012 will be $200 - 400 million. 50% to 80% of automotive manufacturing and assembling lines are supplied from imports. The Canadian Federal and Provincial Governments have provided financial support to this sector. Best Products/Services
Motor Vehicle Transmissions and Power Train Parts - $2.9 billion (up 67%) Motor Vehicle Steering and Suspension Components - $1.3 billion (up 60%) Motor Vehicle Electric and Electronic Equipment - $1.4 billion (up 49%)
Resources
Automotive Industries Association of Canada Industry Canada Statistics Canada DeRosiers Automotive Consultants Commercial Specialist Stefan Popescu Stefan [email protected]
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CHINA Overview China has become the largest automotive market in the world in terms of the volume of manufacturing and sales in 2010, with 18.3 million vehicles manufactured and 18.06 million sold in the country, representing a 32.4% annual increase from 2009. China imported $58.2 billion worth of automotive components in 2010. Growth in the motorcycle market is still limited by a general prohibition on motorcycles in China’s large cities. China has about 6,000 automotive-related enterprises in five sectors: motor vehicle manufacturing, vehicle refitting, motorcycle production, auto engine production, and auto parts manufacturing. This includes approximately 100 OEMs, with 40 producing passenger vehicles, and over 4000 registered auto parts/accessories companies. All tiers of the industry are being driven by the booming sales of the OEM sector. Nearly 80% of the revenue for the auto parts and accessories market is through new vehicle sales. However, revenue from the after-market is increasing rapidly. Shanghai and its surrounding provinces (Zhejiang, Jiangsu, and Anhui) are the centers for component manufacturing, representing around 44% of national production. Shanghai is home to Shanghai General Motors, Delphi, Visteon, and other notable American automotive companies and, as such, provides a good starting point for U.S. automotive component exporters to begin to explore the Chinese market. Other major automotive centers in China include Guangzhou (South China), Chongqing (West China), Changchun (Northeast China), Wuhan (Central China), and Tianjin (North China). With 47% of all automotive component imports in 2009, Japan remains the largest exporter of automotive components to China. Germany and South Korea are the second and third exporter of automotive components, accounting for 22% and 11% respectively. The U.S. is the fourth-largest exporter with only 4% of the market. Some of the obstacles that U.S companies encounter are: 1) Good price but lack of the most advanced technology. 2) Difficult to compete with Japanese and Korean suppliers since Japanese and Korean OEMs normal only import from their home-country suppliers. In 2010, 18.06 million vehicles were sold in China. Much of this growth still comes from stimulus policies for this industry, especially a tax rebate for cars of 1.6 liters or less and other subsidies for buyers in the countryside. The obvious trend is that small cars will be popular due to policy guidance and market demand. The Chinese government has promised to reduce the country’s carbon emissions dramatically, so more and more policies favor small cars. Meanwhile, after more than 10 years of rapid development, first-tier cities like Beijing, Guangzhou and Shanghai have enormous numbers of cars on the road, so people in second-tier cities will represent the largest potential buyer for the next 10 years, but these buyers are more sensitive to price and so small cars will continue to be popular in second-tier cities.
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Another new trend is for Chinese auto companies to purchase overseas automotive companies for brands and technology: BeiQi purchased SAAB and Geely Motors purchased Volvo. That happened partly because Chinese auto manufacturers have accumulated enough money to do this, and partly because they have reached a bottleneck in their business expansion and technology improvement. China exports relatively little in the automotive arena, mostly to African and Latin American countries, but Chinese automakers already have their eye on the U.S. and European markets. The priority goal for Chinese automotive components, parts, and accessory manufacturers is to improve technology, quality and design capability. Currently, a consortium is working on developing a Chinese automatic transmission, a technology that has eluded them so far. Most of the domestic automotive parts manufacturers’ R&D capabilities are limited, due to the small scale of their operations and a shortage of capital to invest in that capability, as compared to international companies. Lately, Chinese companies are dominating the low-end components market and have aggressively sold their parts to U.S. automakers. Best Products/Services
Engines, especially engines smaller than 1.6 liters, for motor vehicles and motorcycles (made by U.S. companies in China);
New energy-related, such as technology and products related to hybrids and electrical cars, especially for buses;
Three-way catalytic devices; ABS; Automatic gear boxes; Braking systems; Machinery, tools, testing equipment for OEM products; Auto and motorcycle casting blanks; Key, high-tech automotive parts and components including disc-type braking assemblies,
drive axle assemblies, automatic transmission boxes, engine admission superchargers, engine displacement control devices, electric servo steering systems, viscous continuous shaft devices (for four-wheel drive), air shock absorbers, air suspension frames, hydraulic tappets, and compound meters.
Auto electronic devices and instruments (including control systems for engines, chassis and vehicle bodies);
Fuel cell technology; Battery management systems for “new energy vehicles”; Automotive accessories; After-market products (that meet legislative guidelines for vehicle modifications)
Opportunities In the next five years, the Chinese Government will continue to encourage foreign investment in automotive component development and manufacturing, so in the meantime, there is still a market for imports and American products are generally highly regarded by Chinese customers. However, the opportunity to sell components or parts directly from the U.S. is rapidly diminishing. Most foreign companies have found they need to set up operations in China to sell
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into the Chinese supply chain. Many U.S. companies have integrated successfully and see a bright future as they expand along with the market. Recently, the Chinese government launched the “National Project for Electric Vehicles,” that encourages the development of environmentally friendly automobiles. U.S. companies possessing clean energy parts and technologies will find more and more opportunities in the Chinese market. Additionally, as China’s restrictions on trading and distribution have been reduced over the years, American companies are gaining the right to distribute most of their own products, including automobiles and related parts, within China. Car dealerships are also about to embark on the business of buying back and selling used cars, although imported used cars continue to be prohibited. Resources
China Associations of Automobile Manufacturers www.caam.org.cn/ China Automobile Dealers Association www.china-cada.org.cn Department of Mechanic, Electronic and Hi- Tech Industry http://cys.mofcom.gov.cn/ Certification and Accreditation Administration (CCC Certification) www.cnca.gov.cn/ Ministry of Information and Technology, Department of Industries http://cys.miit.gov.cn/ Beijing Office: Ms. Gwen Lyle, Commercial Officer
Ms. Zhang Qiurong, Commercial Specialist Shanghai Office: Mr. Keenton Chiang, Commercial Officer
Ms. Wenjuan Zhan, Commercial Specialist Guangzhou Office: Ms. Liu Ying, Commercial Specialist Chengdu Office: Ms. Chen Ling, Commercial Specialist Shenyang Office: Mr. Huang Wei, Commercial Specialist
COLOMBIA Overview After a significant drop of 49% in 2009, the outlook for the automotive parts sector is positive once again due to a positive trend in vehicle sales. According to Econometria, during the period (Jan-Oct 2010) vehicles sales increased by 32.10% in comparison with the same period in 2009. Industry observers project that 2010 will be the second best year of sales after 2007. Colombia is a market with a high demand for automotive parts. An estimated 3.7 million vehicles are currently operating in Colombia, of which approximately 2.9 million were produced by the three local assemblers: GM-Colmotores, CCA-Mazda, and Sofasa-Renault. Colombia averages one vehicle per 15 inhabitants, based on its population of 45 million. The country is the third largest automobile assembler in Latin America after Brazil and Mexico. The average age of motor vehicles in circulation is 15 years, making Colombia an excellent market for spare parts for older cars. Another key factor driving demand is the frequent need to replace broken parts due to Colombia’s poor road infrastructure. The government’s 2011 budgets reflects plans to invest $500 million to improve infrastructure nationwide, with special emphasis on the road network which has been severely damaged by December 2010 floods. Generally speaking, roads
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are in poor to fair condition, increasing the likelihood of damage to vehicles and requiring constant vehicle safety checks and spare parts’ purchases. In 2010, the Colombian automotive sector is projected to grow 32.1% after two consecutive difficult years. The 2008 global economic crisis was an important consideration as Colombia’s economic growth slowed to 0.4%. However, the single, most critical factor was Venezuela’s decision to break diplomatic relations with Colombia in August 2009 and stop imports. Prior to 2010, Venezuela was Colombia’s second largest trading partner. The border closure seriously affected local automotive production as well as the auto parts and accessories market. In an attempt to salvage Colombia’s automotive export market, President Santos re-established diplomatic relations with Venezuela in August 2010. This move positively affected many industrial sectors in Colombia including the automotive sector. In 2009, the market reached $504.4 million representing almost a 10% decline compared to 2008. In 2010, the market is expected to increase 25% to $631.0 million, as the global economic crisis continues to dissipate. U.S. imports dominate the market with a 26.5% market share, followed by China with a 7.1% market share. China is becoming a serious competitor in the automotive parts market competing mainly on price. However, consumers are wary of buying Chinese parts because of their perceived lower quality and durability compared to other vendors. More than 106 countries compete to supply the Colombia automotive parts market. The U.S., Brazil, Japan and China have the highest market shares. The U.S. and Brazil compete with quality and state-of-the-art products, while the Asian countries have obtained larger market share pursuing a low price strategy and offering correspondingly low quality When the U.S. - Colombia Free Trade Agreement (CTPA) is approved by the United States Congress, this will result in a measurable increase in U.S. exports of automotive parts and accessories to the country. Existing tariffs range from 5 to 30%. When the treaty is implemented, Colombia will eliminate its prohibition of remanufactured automotive goods, as defined in Chapter Four – Rules of Origin; and most tariffs will be eliminated within 10 years. Best Products/Services The top U.S. exports to Colombia in this sector are:
Gasoline and diesel engines, piston rings, cast-iron engine parts, carburetors, engine valves, other cast-iron engine parts, fuel-injection pumps
Electric storage batteries, nickel-cadmium storage batteries, electrical distribution parts, terminals, electrical splices and electrical couplings, boards, panels, consoles
Cabinets for motor vehicles, bodies for passenger automobiles, body stampings, gearboxes, drive axles with differential, suspension shock absorbers, radiators, clutches, suspension systems, parts for power trains, brake parts
Shock Absorbers Lights, high and low beam and also decorative lights Air Filters and Oil Filters Windshields Gaskets for the engine Other cast-iron engine parts Tires for small vehicles, trucks and buses Parts of fans, ventilating hoods, air conditioning and parts for motor vehicles
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Opportunities Best sales opportunities over the short and medium term will be determined primarily by the continued demand for aftermarket parts and by the demand for parts generated by the equipment already in operation. According to industry and trade sources, local companies plan to manufacture those automotive parts and accessories that will have the largest demand in the local market. Demand for imported equipment will follow the same trend, but the growth brought on by expanded markets created by international trade agreements (such as the CAN-Mercosur, G-2, ALADI, and others) could mean more opportunities for U.S. imports. Variables affecting this sector include:
the revaluation of the peso against the dollar (which has appreciated by 24% to its 1999 level) which is advantageous because the sector imports more than 50% of the auto parts needed for vehicle maintenance;
the continuous growth of the per capita GDP, which is expected to reach $5,000 in 2010, thus, increasing the level of consumption;
the cost of energy, which, according to some companies has increased more than 200% in 2009, negatively affecting financial results of the manufacturers;
An FTA with South Korea, which ranks as the seventh largest exporter of auto parts to Colombia with 4.8% of the market in 2009;
An FTA with the EU; Germany and France, respectively, appear as the eighth and ninth biggest exporters of auto parts to Colombia in 2009. Ratification and implementation of an FTA with the EU in 2012 could create competitive disadvantages for U.S. companies in the long term; and
An FTA with Canada, another significant exporter of auto parts to Colombia in 2009. Canada signed an FTA with Colombia that will be implemented in 2011 bringing advantages for purchasing cheaper auto parts and accessories. In sum, the signing and ratification of any non-U.S. Free Trade Agreement will create a competitive disadvantage for U.S. products in a medium and long term.
When the FTA with U.S. is implemented, Colombia will eliminate tariffs on priority automotive products, including large-engine 4x4 vehicles, engines, brakes, shock absorbers, and other auto parts will be phased out immediately upon implementation of the agreement. Find more information on the trade agreement at: http://www.ustr.gov/Trade_Agreements/Bilateral/Colombia_FTA/Section_Index.html Resources
Colombian Association of Automotive Parts Manufacturers-Acolfa: www.acolfa.com.co National Statistics Department-Dane: www.dane.gov.co Asopartes (Association of Automotive Parts Importers and Dealers):
www.asopartes.com.co Ministry of Transportation: www.mintransporte.gov.co ANDI (National Industrialists Association): www.andi.com.co ACOLFA (Association of Automotive Parts Manufacturers): www.acolfa.com.co CS Bogotá contact: Ricardo Roldán, Commercial Assistant [email protected]
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CZECH REPUBLIC Overview Although the financial crisis hit the Czech automotive industry hard, production of new passenger cars rose to an all-time-record high both in 2009 and 2010. The increases recorded were 4.12% in 2009 and 1.5% in 2010 respectively. The Czech automotive industry capitalized on higher demand for cheaper and smaller cars in the European Union, which car manufacturers in the Czech Republic specialize in. In addition to new car manufacturing, production of automotive parts and components plays a significant role and represents almost 50% of the sector. This area was hit by the crisis the most and the market has faced severe reductions. Best Products/Services
In-car entertainment Auto security equipment Car care products Hybrid buses for Prague public transportation Electric bikes for the Czech Post Advanced technologies and supplies for automotive parts manufacturers
Resources
Association of Automotive Industry of the Czech Rep: www.autosap.cz/default-e.asp U.S. Commercial Service: [email protected]
DOMINICAN REPUBLIC Overview In the Dominican Republic, the high demand for automotive spare parts is attributable to the aging car population, the growth in total vehicle population, and the sub-standard quality of many Dominican streets and roads. According to the Motor Vehicle Department, there are 2.7 million vehicles in the Dominican Republic (representing an increase of 5% when compared with 2009). Out of this total vehicle population, 49.5% are motorcycles, 24.2% are automobiles, 12.6% are pick-up trucks, and the remaining 13.7% includes buses, trucks, and SUVs (presenting the SUV’s the largest growth: 10.1%). There is also a general tendency in the Dominican Republic to overextend the useful life of vehicles, both due to the high cost of vehicles and low cost of local labor to repair vehicles. Statistics indicate that in the Dominican Republic, vehicles older than seven years represent 83.8% of the total Dominican vehicle population, directly influencing the high demand for automotive parts and services. Although there is local production of batteries and radiators, it only covers a small percent of the total market, while the rest of the market is supplied from imports. Previous to the implementation of CAFTA-DR (March 1st, 2007), Japanese and other Asian products accounted for 50% of total imports due to the significant car population imported from Japan. Nevertheless, U.S. automotive spare parts exporters have managed to increase exports to the Dominican Republic mainly because of the CAFTA-DR, which decreased the import tax levied to U.S. products from 20 to 0% for most products, while others are going through a phase-out process of up to 10 years. As a result, imports of automotive spare parts
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originated in other countries continue to pay 3 - 14% import tax, creating a competitive advantage for U.S. products. The market share for U.S. products is now 65% and the market for automotive spare parts and services is estimated to grow 15% over the next three years. Best Products/Services
Body parts and accessories Brakes and parts Drive-train parts (suspension shock absorbers, steering wheels) Batteries Engines and electrical parts for motor engines Tires Used parts
Resources
Report on the Dominican Vehicle Population (Parque Vehicular): http://www.dgii.gov.do/estadisticas/ParqueVehicular/Paginas/ParqueVehicular.asp
Isolda Frias, U.S. Commercial Service trade specialist [email protected]. El SALVADOR Overview El Salvador is a net importer of automobiles and automotive aftermarket products. More than 699,327 vehicles are registered with the Ministry of Transportation in the country and need maintenance and repair. The market for auto parts is divided in three: the private sector, the public transportation companies, and the government. Auto repair shops play an important role in the decision making process for the purchase of parts and accessories for their clients in all three categories of the above end users. The private sector includes all consumers that provide maintenance to their vehicles as well as private companies that need their fleets working in the best shape possible. Public transportation companies own 11,265 buses. Most buses have over five years of active use and require repair in order to continue providing the much-needed service. All parts to keep the public transportation fleet working are imported. Both, the central government as well as the municipality of San Salvador have announced projects to revitalize the public transportation service in the capital city by buying new buses and establishing special driving lanes. Currently, these are only proposals with no implementation date. Major importers of auto parts and accessories have their stores and distribution centers in San Salvador. The majority of the businesses that distribute parts in the rest of the departments buy locally from importers in San Salvador, San Miguel, or Santa Ana. In 2008, 30% of all imported parts and accessories were U.S. origin; in 2009 this increased to 32% and in 2010 decreased to 29%. Since 2008, the Salvadoran market has been experiencing a decrease in the number of new cars sold by year. In 2007, 16,924 new cars were sold; in 2008 the figure decreased to 14,355, and in 2009 to 6,744. In 2010 the market showed signs of recuperation, with a slight increase in the number of new cars sold relative to 2009. In 2010, 7,200 new cars were sold. According to some associations, the implementation of an increase in the cost of the registration for new vehicles implemented in 2010, together with the economic crisis contributed to the slow recuperation of the automotive sector. On average, vehicles in El Salvador deteriorate faster than
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in the U.S. and need more parts in order to maintain active use. This is due to poor maintenance of streets, increasing traffic, disorganized public transportation, use of old vehicles, and lack of organized traffic flow that directly affects vehicles. Used vehicles are imported mainly from the United States, bought directly from salvaged car auctions to be repaired locally and then sold. These cars require continuous maintenance and replacement services. Mechanic and repair shops purchase parts and accessories from local automobile parts importers, as well as automotive equipment usually imported directly for use in their shops. Importation of used vehicles has also decreased due to the sector’s slow recovery from the economic crisis. The Salvadoran market of auto parts is highly competitive and there is a wide diversity of needs due to the importation of a wide variety of different automotive brands of many origins. Importers, distributors, and end users of parts are receptive to U.S. auto parts and accessories due to the products’ quality and warranty, and geographic proximity. Nevertheless, the industry is extremely price sensitive, and there is a strong competition in sales of parts and accessories from other countries such as: China, Japan, Taiwan, and Brazil. Other things to consider are that Salvadorans are focusing more on repairing and less in providing preventive maintenance to their vehicles and the importation of used/refurbished parts is becoming more common. For accessories “Tuning” is always in fashion, and tuning followers exhibit their vehicles in San Salvador as well as in the rest of country, by organizing tours to different cities. Additionally, the annual local trade show called Auto Expo, to be held this year on November 4-13, 2011, puts together all vehicle related sectors and auto fanatics and presents to the general public the new auto trends and fashions. U.S. companies exhibit at Auto Expo through their local authorized representative. Best Products/Services Tires, accessories, engines, filters, wheels, radiators, sound systems, alarms, mufflers, tire repair, electronic diagnostics, lubricants, tire balancing, compressors, clutches, steering wheels, batteries. Opportunities There is no significant automotive parts and accessories production in the Salvadoran economy and thus, almost all parts are imported. The U.S. Central America Free Trade Agreement (CAFTA-DR), implemented in El Salvador on March 1, 2006, provides a broader opportunity for the U.S. industry, since import tariffs for parts under H 8708 were automatically reduced to zero after CAFTA-DR implementation. For Vehicle Accessories under HS 8714, 57% of product categories already had 0% tariff and 14% of product categories became 0% after having a 5% tariff. The remaining product categories will be decreasing in tariff rates in the following 5 years. Also, American auto brands have been steadily increasing their market share the past several years, and spare parts are needed. Salvadorans recognize the value of quality parts made in the U.S. A good opportunity for U.S. companies to meet Salvadoran companies is through their participation in trade shows. The Department of Commerce in El Salvador will be promoting
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AAIW 2010: SEMA and APPEX, Las Vegas, NV, November 1-14, 2011. http://www.aaiwshow.com Resources
Vice Ministry of Transportation: www.mop.gob.sv Salvadoran Association of Auto Parts Importers [email protected] Salvadoran Association of Distributors of Vehicles [email protected] Cecilia de Avila, Commercial Assistant, CS San Salvador: [email protected]
FRANCE Overview With 2.26 million registrations in 2009 (date for which latest official figures are available), France recorded a 10.7% increase in new passenger vehicle registrations (all manufacturers, all origins), compared with 2008. This is mainly due to the implementation of car turn-in incentives, which helped to avoid the collapse of the market in the 13 European countries who implemented it. On the other hand, registrations of light duty vehicles fell by 17.6% to 379,000 in 2009 compared with 2008 (there were no incentives for this category of vehicle). In total, the light vehicle market (passenger + light duty vehicles) decreased to total 2.64 million vehicles registered. The increase in vehicle orders at the end of 2009, for delivery in 2010, most certainly stabilized the market in 2010. Although final figures have not been released, a 5% increase in equipment manufacturers’ activity is also expected to have occurred in 2010. However, as incentives for small and green vehicles have not been renewed by the French government, the industry outlook is very prudent for 2011. Despite the registration figures, 2009 was one of the worst years for the automotive industry in France in terms of vehicle production. The deep decline in vehicle production in France had a major impact on equipment manufacturers’ activities. Local production decreased by 8.5% in 2009 compared with 2008 to total 1.7 million vehicles. France lost more automotive workers in 2009, totaling 97,018 compared with 107,000 workers in 2008. French automotive parts manufacturers‟ sales totaled approximately $26 billion in 2009, which represents a decrease of 23% compared with 2008. When released, figures for 2010 should show a modest 5% increase. 2009 Original Equipment Manufacturers (OEM) auto parts sales were valued at approximately $21.5 billion, a 23% decrease compared to 2008. Sales to the aftermarket (Original Equipment Suppliers + Independent Automotive Market) decreased by 22% to total approximately $4.5 billion in 2009. The main categories of automotive parts included in these figures are: power train equipment (43.9%), vehicle interiors (27.3%), tire-to-road link components (12.6%), body components (12.5%) and equipment for measurements, checks, diagnostics and repairs (3.7%). This equipment is sold to the OEM market and the aftermarket, which includes the OES (Original Equipment Suppliers) and the IAM markets (Independent Market). The automotive parts market in France is dominated by big multinational firms, many of them American with French or European operations. The FIEV (The French Vehicle Equipment Industries Association) regroups the main parts and equipment suppliers in France. Large U.S. suppliers are already present in France and are doing well. Among the twenty top suppliers, eight are American
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(Delphi, Visteon, Johnson Controls, Lear, TRW Automotive, Dana, Arvin Meritor, and Federal Mogul). There is little or no room for mid-sized exporters in this very closed environment, where competitive requirements, transportation costs, etc., make it very difficult for firms not physically established here to sell their products to OEM and OES. U.S. industry generally supplies the French market from its European subsidiaries or via local joint ventures. Direct imports from North America decreased in 2009 to 599 million dollars compared with 809 in 2008. 2011 figures should resemble those of 2009, adjusted for exchange rates. Almost 81% of auto parts imports come from within Europe; otherwise, 3% are from the U.S., and 7.3% and 3.6% are from Asia and Africa respectively, via low cost manufacturing facilities there. Opportunities Opportunities for U.S. suppliers will be for highly technological products or those that are innovative in the context of the environment, security and safety. Resources
French Vehicle Equipment Industries Association www.fiev.fr Stephanie Pencole, USCS Trade Specialist [email protected]]
GERMANY Overview In 2010, the automobile industry remained one of the driving forces behind German economic growth. While domestic demand decreased slightly, exports of German cars increased by 25%. Due to increased global sourcing by German manufacturers, and a favorable exchange rate, U.S. parts manufacturers increased their exports to Germany. In the first months of 2010, while sales in Eastern Europe continued to stagnate, or even decrease, sales of German manufactured vehicles around the world increased rapidly (especially to China). As German manufacturers increase their global purchases, for both their German and foreign manufacturing facilities, U.S. manufacturers should take advantage of the opportunity to offer parts and services. Best Products/Services
Engine electronics; Multi-media products Forged and pressed parts; Development and introduction of electronic systems for vehicles using
alternative/hybrid/electric fuel. Resources
VDA (German Automobile Association): www.vda.de ZKF (Central Association for Car and Body Technology): www.zkf.de Central Association for German Motor Trades and Repair: www.kfzgewerbe.de Commercial Service Contact: [email protected]
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GUATEMALA Overview The Guatemalan market for automotive parts and accessories remained steady in 2010. On average, Guatemalans keep their automobiles for 5-7 years before purchasing a newer model. There is a large market of importers who buy damaged cars at auctions in the U.S. These automobiles are repaired and refurbished locally for later re-sale. There are more than two million used vehicles registered in Guatemala, including motorcycles. These cars require continuous maintenance and replacement services. Imported parts and equipment are sold to local mechanic shops, service stations and gas stations. The significant volume of used vehicles in circulation has stimulated the need for this type of equipment. Automotive parts importers must supply the demand from local importers of used cars, who need parts to repair sometimes severely damaged cars. 35% of all automotive parts, accessories and service equipment are imported from the U.S. with the remaining percentage of imports coming from Asia (mostly Korea, Japan and China), Brazil and Europe. Asian manufacturers are present in the market with low priced products. It is estimated that almost 75% of the cars circulating in Guatemala represent Asian brands. Customs records for Guatemala report that the U.S. has approximately 35% market share. Import taxes for new cars are considered high (between 10-20%). During 2010, Guatemala imported approximately 17,000 new cars, representing 1% of the total number of vehicles in the country. Thus, there is a great opportunity for U.S. exporters of automotive parts and accessories that will help maintain the current vehicle volume. In 2010, the Guatemalan market for new vehicles had a slight increase from 2009, and it is estimated that it will continue to be a slow but steady growing market. Best Products/Services The most promising sub-sectors for U.S. products within the industry include aftermarket products such as: bumpers, spoilers, tail lights, wheels, sound systems, alarms, tires, batteries, suspension kits, mufflers, filters, chips, exhaust systems, brakes, windshield wipers, spark plugs, wheel covers, steering wheels, etc. Other promising products are service equipment such as: lifts, tire repair, electronic diagnosis, tire balancing, compressors, and in general all necessary equipment and tools for service stations. Opportunities There are more than one hundred spare parts and service agents in Guatemala due to the large demand for aftermarket products, service tools and equipment. The majority of agents and distributors, whether they are large companies or small entrepreneurs, are always open to look at new alternatives to offer their customers. It is very important to note that this market is completely price driven and that Asian brands are well positioned in the market. Innovative, unusual products are a good opportunity for U.S. manufacturers as long as the prices remain competitive. For additional information, please contact [email protected]
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Resources Official website for Government Tenders: www.guatecompras.gt Guatemalan Chamber of Commerce: www.negociosenguatemala.com Tax information official website: www.sat.gob.gt Statistical information: www.sieca.int/site/inicio.aspx U.S. Commercial Service in Guatemala: www.buyusa.gov/guatemala
HONDURAS Overview Market demand for U.S. products in this sector looks promising with an expected growth rate of 10% over the next three years. An aging car population continues to fuel demand for automotive parts and accessories in Honduras. An estimated 70% of the total vehicle population, registered at 852,604 units in 2008, is at least 5 years old and in need of constant repairs. According to industry sources, the global slowdown has reached Honduras, and is having a negative impact on domestic demand for new vehicles. The total vehicle population, however, could double in the next 5 years, and the distances traveled should also increase due to an accelerated urban expansion. The introduction of U.S. manufactured vehicles has also increased significantly over recent years, providing greater opportunities for American exporters. Honduras has no local production of automotive parts & accessories. The United States is one of the major suppliers in this sector, along with Japan, Taiwan, Korea, China, Brazil, Mexico, Germany and the U.K. Public service transportation units represent one of the major end-users of automotive parts and accessories in Honduras. Most of the urban transportation fleets use buses of low operational quality, of which 80% are obsolete. The replacement needs for urban buses alone is estimated at over $60 million. According to the National Statistics Bureau, buses and other passenger transportation vehicles report an average annual growth of 2,500 units. There are more than 300 retailers of automotive parts and accessories in Honduras who buy directly from overseas or through local distributors. Japanese cars and light trucks dominate the market but parts are often purchased through the United States. American-made pickups, SUVs, heavy trucks and buses have stronger shares of the local market. Recent tariff changes for automotive vehicles include the elimination of a disadvantage to U.S. vehicles vs. Japanese models, as Honduras rescinded the tariff based on engine size. Best Products/Services In general, most automotive aftermarket products and service equipment are expected to offer good sales opportunities in the Honduran market. Particularly promising products include:
All types of engine spare parts Electrical and brake system components Transmission and suspension parts Tires, wheels, bumpers; spoilers; tail lights Mobile electronics; alarms; sound systems Emission control equipment Batteries Automotive accessories
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Opportunities Recent tariff changes, including a complete ban for the importation of used automobiles and passenger motor vehicles of more than 10 and 13 years old, respectively (from 7 and 10 years), are expected to increase the used vehicle population in Honduras. U.S. exports of automotive parts, service equipment and accessories are also benefited from tariff reductions under the CAFTA-DR trade agreement. The 2001 “Regulation of Hazardous Gas Emissions of Automotive Vehicles” is aimed at reducing the increasing air pollution levels generated by tailpipe emissions in the major cities of Honduras. According to this law, all passenger motor vehicles need to be fitted with an emissions control system or catalytic converter. This important regulatory measure, coupled with the growing demand for effective emissions control devices, should positively influence the demand for automotive parts and accessories through local repair shop services. The Commercial Service Office in Tegucigalpa annually recruits and leads a delegation of Honduran automotive aftermarket leaders to the AAIW (Sema/AAPEX) show in Las Vegas, Nevada. It is the most important retail and specialty automotive aftermarket trade event in the U.S. For more information on this International Buyer Program, please visit www.aaiwshow.com. Resources
Honduran Association of Automotive Dealers and Distributors of Automotive Parts & Accessories [email protected] Automotive Aftermarket Industry Week http://www.aaiwshow.com U.S. Commercial Service www.BuyUSA.gov/honduras/en
ISRAEL Overview The Israeli automotive industry is solely dependent on European and Asian imports, having no manufacturing base of its own. Industry sources predict that motor vehicle deliveries will average 240,000 units per annum from 2011-15, 60% of which will be purchased by the major leasing companies. Of the 2.5 million cars on Israeli roads, 3.7% are made in the United States and the balance from Europe (45.9%) and Asia (50.4%) - Japan 39.1% and South Korea 11.3%. The five top brands are Mazda, Hyundai, Toyota, Chevrolet (Korea), Ford (EU). Total imports of aftermarket products are estimated to reach $428 million in 2010 and $471 million in 2011. The bulk of which come from Germany, Japan and Asia. Imports from the U.S are estimated at $25 million annually. Access to the Israeli market by US exporters is best achieved through any of the 600–700 importers of aftermarket products. There are also around 20 local OEM parts, their substitutes and accessories that service a number of the major American and European car makers. Despite OECD directives, taxes on new cars in Israel are among the highest in the world (83%), which industry sources blame as the main factor preventing the car market from reaching its full potential. It seems that the Government of Israel is in no hurry to give up on one of its major
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sources of tax revenues, though it recently introduced tax incentives on imports of electric vehicles in order to help reduce carbon emission gases. In fact Israel has been chosen by the California-based company Better Place as the location to launch its network of recharging/battery swapping stations in October 2011 (Nissan-Renault will supply the vehicles). Another important piece of legislation introduced by the Ministry of Transport & Safety (MOT), in order to stimulate competition in the marketplace, is parallel importation of vehicles by newly certified distributors. To-date only one company has been licensed. Moreover from March 2011, Japanese and European models, which are made in the USA according to American standards, will now be allowed into the country. Personal car imports account for only 2% of all car imports, but nearly 25% of luxury car imports (mostly from the USA) costing more than $54,000. Best Prospects/Services
Car body: bumpers, radiator grills, hood and trunk lids, wings, front and rear lamps (i.e. the parts most vulnerable in car accidents).
Car security and anti-theft devices: anti-theft electronic systems, locking devices. Service parts: disc brake pads, shock absorbers, front suspension parts, filters for oil and
lubrication, air conditioning parts. Replacement service parts: tires, fan belts, water hoses, water pumps, brake components,
engine and transmission components, electrical components, undercarriage items that need replacing at the end of the warranty period.
Vehicle accessories: car care products, polish, wax, upholstery spray. Water-coolants (Glycol) for radiators. Electronic accessories: TV screens for the rear seats, GPS systems, sound systems etc. Universal lubricants: well-known brand names of high-grade oils, lubricating, glycol,
wax. The market demands well-known brand names. Resources
Israel Ministry of Transportation Commercial Specialist Alan Wielunski: email:[email protected]
ITALY Overview Italy is one of the largest European automotive markets, with 1,960,282 new registered passenger vehicles sold in 2010 (vs. 2,158,010 in 2009). As elsewhere in Europe, the sector is facing a difficult period, with a flat sales outlook for 2011. In 2010, the local market leader, Fiat (brands: Fiat, Lancia, Alfa Romeo, Maserati, Ferrari and Abarth) had a 30.4% (32.8% in 2009) market share. Fiat’s position is due to its range of affordable city cars. Fiat is the only auto manufacturer producing cars in Italy (apart from niche brands like VW-owned Lamborghini and dR, a JV between an Italian company and a Chinese firm). Fiat has a manufacturing JV in the light commercial vehicles sector with the French PSA Group (brands Citroen and Peugeot).
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The Italian automotive industry is mainly concentrated in Turin and Piedmont (the Region surrounding it) where Fiat is headquartered), where around 50% of the 2,600 companies (with 170,000 employees) active in the sector in Italy are established. In January 2009, Chrysler and Fiat announced an agreement (formalized in June 2009) by which Fiat received an initial 20% (now 25%) stake of Chrysler (which could be raised to 55%). Fiat did not pay cash, but agreed to share with Chrysler products and platforms for small and medium cars, and its green technologies. The deal aims to help Fiat return to the U.S. market where it has long been absent. In return, Chrysler is expected to be able to sell in more foreign markets, like South America and Asia, where Fiat has an established network. Both companies aim to optimize their manufacturing footprints and global supplier base, and save by combining their purchasing power. Globally, Fiat and Chrysler already purchase parts and components for about $53 billion and their vehicles production is expected to double by 2014, thus leading to a strong increase in their parts and components’ purchases. Marketing and sales cooperation between Fiat and Chrysler is expected in the next months to lead to new models. The first one will be a crossover named Freemont, Fiat's version of the Dodge Journey, with minor exterior design changes, a revised interior and a stiffer and more responsive suspension and steering to cater for European driving tastes. Besides that, sales of ‘Lancia’ branded Chrysler vehicles in Europe will start soon: the new sedan Lancia Thema will go on sale starting in late 2011 with a Lancia badge in mainland Europe and as a Chrysler in the UK and Ireland. Apart from this major alliance, Fiat has a manufacturing agreement with Ford. In 2005, the two companies agreed to develop a small car, (engine and transmission supplied by Fiat), to be produced in a Polish Fiat plant. The results of the agreement were the blockbuster Fiat “500” and Ford “KA” currently sold in Europe. Fiat “500” will also be the first Fiat model to be sold in the United States (manufactured in Toluca, Mexico), beginning this year. In the past, Fiat and GM had a brief, but unsuccessful, alliance. The only major leftover is a major GM engine research center in Turin. Ford and GM operate in the Italian market through their European subsidiaries. They sell vehicles manufactured in Europe and East Asia (Germany, France, South Korea, etc.); direct imports from the U.S. are few. The Italian vehicles production of cars, light commercial vehicles and trucks sharply decreased over the last few years (842,235 in 2009, down 17.6% compared to 2008). The shift in car sales in Italy towards small models (encouraged by government incentives) had a negative impact on Italian domestic production: most of Fiat’s smallest vehicles were produced outside Italy, e.g. in Poland and Turkey. Interesting developments are expected due to a new Fiat plan, which includes the domestic production of the blockbuster model “Panda”, formerly assembled in Poland, and of SUVs based on Chrysler platforms. Fiat plans to manufacture 1.4 million cars in Italy by 2014. If this plan is implemented completely, Italy’s domestic production will increase to around 1.9 million vehicles in 2014; if
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just 75% of the plan is implemented, Italy’s production will be around 1.5 million vehicles, 18% more than the average of the last 10 years, and almost twice the 2009 level. Parts: The Italian automotive parts market was worth approximately $44.5 billion in 2009, which represented a decrease of around 15% compared with 2008. Figures for 2010 are not available yet, but should be better than 2009. Anyway, the industry is still prudent as concerns the future: government incentives (a cash-for-clunkers-like scheme), which helped boost sales of small (and green) vehicles in 2009 (and first quarter of 2010) are not expected to be renewed in 2011. OEM production accounted for around 80% of sales. The aftermarket composed of Original Equipment and Independent Aftermarket, accounted for the rest. Big multinational firms control much of the local tier-one parts market. As elsewhere, the need for proximity to the manufacturer, delivery requirements, transportation costs, etc., makes it very difficult for firms not physically located in Italy to enter this very competitive market. Many U.S. groups are active and have facilities and even factories in Italy. Among them: Borg Warner, Delphi, Exide, Federal Mogul, Johnson Controls, Key Safety Systems, Lear, Mark IV Automotive and TRW. Imports are stronger in the Aftermarket rather than in the Original Equipment sector, due to the development of modern distribution channels and transnational operators, improved performance of foreign automotive organizations and greater competitiveness of imported products. Quality products are mostly imported from neighboring European countries especially Germany and France. For lower price items, (e.g. tires), imports from low cost European and Asian countries are growing. Direct imports from the United States are relatively low. Maintenance: Italy has one of the highest auto densities in the world, (and Europe’s highest), but also one of the oldest car fleets in Europe. About 15 million vehicles are classified as Euro 0, Euro 1, Euro 2, and most of them were older than ten years. The European Union has its own set of emissions standards that all new vehicles must meet. Passenger cars and light commercial vehicles are classified as Euro 0 to Euro 5 and Euro 6 (being Euro 0 the oldest and more polluting vehicles). As a consequence of the stricter and stricter pollution regulations expenses related to maintenance repair equipment have continued to increase during the last few years; during difficult times, people tend to delay replacing old vehicles and therefore need to service them. Moreover, the higher frequency of periodic compulsory motor vehicle inspections (the first one after 4 years, then every 2 years), and stricter pollution control regulations have forced the replacement of parts and the use of more modern service equipment than in the past. Furthermore, as the electronic systems on cars become increasingly sophisticated, service shops have to invest in new equipment and technologies to provide the maintenance required. The European standards on auto servicing adopted since 2002 opened interesting prospects for independent repair professionals. Independent professionals are entitled to receive from car manufacturers any technical information and training needed to repair any kind of vehicle. This is a significant market opportunity for Italy’s independent repair professionals.
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Furthermore, the so-called liberalization of the distribution allowed the possibility of using spare parts “complying with the original”, and of “equivalent quality” to those made by manufacturers. This has reduced the manufacturers’ hold on the market. Moreover, some experts believe there is little or no quality difference among the top brands and that non-genuine parts offer comparable quality at a lower price; as a result, part of the car manufacturers’ control of the market has been shifted to distributors and users. At the same time, in the last years, EU regulations forced car manufacturers to extend the minimum period of warranty for new cars to two years. Many manufacturers are using the warranty period as a marketing tool, and customers tend to go to the official garage networks more than before, at least while vehicles are under warranty. This strengthens the manufacturer’s relations with the customers and allows the manufacturer to generate more revenues in the long run and try to balance the lower and lower margins deriving from sales. There is another interesting development in this sub-sector: some networks (also established by components’ manufacturers) are being developed between the individual repairers (many of them are joining these organizations) and the official vehicle manufacturers’ networks. Many U.S. companies producing car shop equipment are active in the Italian auto repair and vehicle maintenance market, usually through local distributors, e.g., Hunter Engineering, Newen, SpecTools and Sunnen Products Company. Alternative fuels: In 2010, both the national government and some regions (roughly corresponding to U.S. states) set up different initiatives to facilitate purchasing electric vehicles. In the automotive sector, the national government has provided a reduction of ownership tax for 5 years from the first registration, as well as 50% discount on insurance premiums to stimulate the purchase of electric vehicles. Anyway, the most important application for electric/hybrid technology is currently in the public transportation sector (buses). Local companies including Iveco, BredaMenarinibus, and Tecnobus are active in this sector. Iveco is part of the newly established Fiat Industrial SpA.: Fiat Industrial began operations on the 1st of January 2011 following the demerger of the activities of Iveco, CNH and FPT Industrial from Fiat SpA. Fiat Industrial serves as a holding company for the truck manufacturer Iveco (100%), has an 89.3% stake in the producer of agricultural and construction equipment CNH Global and has 100% of FPT Industrial, which comprises the industrial and marine activities of Fiat Powertrain Technologies. BredaMenarinibus is part of Finmeccanica, Italy’s leading manufacturer in the high technology sector and among the top ten global players in aerospace, defense and security. Piaggio Group (the well-known manufacturer of the “Vespa” scooter) specialized in light commercial vehicles. As in other countries, the availability of easy-to-reach recharging infrastructures is probably the bottleneck for any major development of this interesting market niche. Interesting opportunities may arise for U.S. companies also in the LPG and CNG fuels sectors. Italy is one of the top markets in the world for LPG and CNG. As with electric/hybrid vehicles, CNG and LPG vehicles are exempt from local regulations limiting the circulation of motor vehicles in some of Italy’s most congested city centers. While 2009 was a record year, LPG and CNG car registrations fell in 2010 (from 31.7% of the market in June to 8.8% in December) when the financial support granted by the Italian federal
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government expired. Two million Italian vehicles run on LPG: about 90 different models of LPG cars and 20 models of CNG cars are available, and most car manufacturers (including Fiat, Ford and GM), offer these models. Several Italian companies are among the world leaders in manufacturing and marketing components and systems for converting vehicles from gasoline to LPG and CNG (and they are expanding their operations to the United States). But U.S. companies that can provide innovative products, including services for the infrastructures can certainly consider Italy as a major potential market. The lack of filling stations (especially for CNG in southern Italy) acts as a limiting factor for further developments in these sectors. Opportunities The above mentioned alliance between Fiat and Chrysler should lead to major opportunities for U.S. parts and components manufacturers. Most of their Italian competitors have strict relations with Fiat and followed Fiat in its development of production abroad (Poland, Brazil, Turkey, etc.); many of them enjoy also good relations with Chrysler. So U.S. suppliers will need to protect, and possibly expand, their presence as Fiat- Chrysler suppliers; this could be a good reason also to team up in JVs with their current Italian competitors. As a general rule, opportunities are available for all the U.S. suppliers able to offer cutting-edge technological products and solutions. Some subsectors / niches offer specific opportunities. Just to name a few: engine electronics, safety and security products, on-board communication, motor sport products, tuning accessories, etc. What is relevant is that the solutions offered by the U.S. companies are really innovative. Resources
ACI - Automobile Club d’Italia (Automobile Club of Italy), www.aci.it ADIRA - Associazione Italiana Distributori indipendenti Ricambi Auto (Italian
Association of Independent Spare Parts Distributors), www.adira.it AICA - Associazione Italiana Costruttori Autoattrezzature (Italian Automotive Service
Equipment Manufacturers Association), www.asso-aica.it AIRP - Associazione Italiana Riparatori Pneumatici (Italian Tires Retreaders
Association), www.asso-airp.it/index_en.php ; ANFIA - Associazione Nazionale Filiera Industrie Automobilistiche (Italian Association
of the Automotive Industry), www.en.anfia.it/ ; ASCAR - Associazione Produttori e Distributori di Accessori e Componenti Speciali per
Veicoli (Italian Association of car special parts and components manufacturers and distributors), www.ascar.it
CENTRO STUDI PROMOTOR - an automotive research organization, www.centrostudipromotor.com;
FEDERLAVAGGI - Federazione tra le imprese del lavaggio per autotrazione (Italian Federation of Automotive Carwash Companies), www.federlavaggi.it/eng/index.php
GIPA - an automotive research organization, www.gipa-auto.com ; UNRAE - Unione Nazionale Rappresentanti Autoveicoli Esteri (Italian Association of
foreign vehicles brands’ representatives), www.unrae.it. USCS Contact: Mr. Andrea Rosa [email protected]
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JAMAICA Overview Although Jamaicans drive on the left hand side of the road, the United States remains an important source of automobiles, automobile parts and accessories. The auto parts and accessories market is, of course, closely tied to the automobile market. Prior to the mid 1990’s, there were severe restrictions on importing motor vehicles. After the restrictions were lifted, the sudden liberalized environment led to a big surge in the variety and number of motor vehicles imported. Best Products/Services Wheel rims, shock absorbers, clutch parts, brake parts, tires, and fancy accessories. Opportunities The market for automobile parts and accessories is expanding. There is also increased vigilance by Jamaican authorities to monitor the quality of the imports coming in – this includes keeping an eye on imports from certain countries as well as the growing trend of importing used parts. There could be increased demand for high quality products approved by Jamaican Standards authorities. Resources Ministry of Commerce, Science and Technology www.mct.gov.jm KOREA
Overview In 2010, Korea manufactured 4.2 million automobiles, making it the fifth largest car manufacturer in the world after China, Japan, the U.S., and Germany. Just over one third of the cars manufactured in Korea were destined for the domestic market. The total size of the automotive parts market in Korea was estimated at $35 billion in 2010, a 22% increase from 2009. The OEM market segment accounted for about 94% of market demand. The aftermarket accounts for only 6% of market size. Imported automotive parts increased to $4.1 billion in 2010 from $3.4 billion in 2009. This accounts for 9% of the total market size (OEM and aftermarket). Asian countries including Japan are the principal exporters to Korea, accounting for 51% of total imports. The EU and North America follow Japan with a 36% and 9% market share respectively. In the era of global competition in the automotive industry, Korean OEMs are expected to expand global outsourcing for the procurement of parts and accessories. Industry sources predict that the launch of Hyundai Motors’ manufacturing plant in Alabama, and Kia Motors’ Georgia plant should accelerate this trend. U.S. suppliers need to be aware of the competition, and offer products with technological advantages that the competition does not have. They also need to educate end-users about the advanced features of their products. It is strongly recommended to partner with a qualified and
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capable Korean distributor who maintains its existing sales network to serve end-users. Exhibiting at local automotive trade shows can be a useful platform to explore the market and gain exposure to end-users. Tapping into Korean automaker plants in the US and US parts suppliers with a manufacturing base in Korea is highly recommended to gain access to the Korean market. Most of the major auto parts suppliers have a manufacturing base in Korea, which include Delphi, Visteon, TRW, Johnson Automotive Controls, etc. Hyundai Motor America currently operates an engineering facility in Michigan, a manufacturing facility in Alabama, as well as proving grounds and a research and design center in California. Kia began production in 2009 in West Point, Georgia about 80 miles from the Hyundai factory. All are owned by Hyundai Kia Automotive Group of South Korea. For the aftermarket, US companies are recommended to supply through existing channels that include OEM’s after-sales service networks, automotive service franchises, independent auto service shops, etc. Though the consumer aftermarket sector is limited, the recent growth of Western-style automotive service centers is also expected to expand demand. CS Korea is currently developing events to help US component manufacturers to meet with Korea’s automotive manufactures during and after the 2011 Korea Autoparts & Auto-related Industry Show in November 16-25, 2011. Please contact our office to learn more about these unique opportunities. Best Products/Services
Leading-edge engine design, engine control units (ECU), electronic engine parts Advanced core parts, including automatic transmissions, anti-lock brake systems and air
bags, and other safety equipment Hybrid technologies, fuel cell cars, and other low-emission related technologies Replacement parts -- spark plugs, ignition cables, timing belts, wiper blades High-end car audio systems and components High-performance automotive chemicals, such as wax and rust-proofing solutions Accessories, like window films.
Resources
Ministry of Knowledge Economy www.mke.go.kr/language/eng/index.jsp Ministry of Land, Transport and Maritime Affairs http://english.mltm.go.kr/intro.do Ministry of Environment http://eng.me.go.kr/main.do Mr. Young Wan Park, USCS Commercial Specialist [email protected]
KUWAIT Overview With summer temperatures reaching or exceeding 50 degrees Celsius (120 F) in Kuwait, the wear on air conditioning, transmission systems, braking units, and tires can be excessive. There is an excellent market in Kuwait for sheet metal and body repair, as small accidents are very common on highways and city streets.
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The auto parts market in Kuwait provides an excellent opportunity for U.S. firms to supply OEM and factory direct products to service the large number of Suburbans, Yukons, Jeeps, Chryslers, Ford, and GM products. In addition to consumers purchasing American automobiles, the government of Kuwait has exhibited a high propensity of buying the American vehicles for its police and military fleets. Kuwaiti youth enjoy the power and speed of American sports cars. Mustangs, Camaros, Corvettes, and other muscle cars are popular amongst the younger generation. Some have extensively modified these cars to the level of being race track-worthy. Best Products/Services American auto part manufacturers or dealers will find ample opportunity in replacement and spare parts for SUVs and luxury automobiles made in the United States. In particular, components for engines, transmissions, brakes, air conditioning units, shock absorbers and tires are in high demand in Kuwait. These products show extreme wear in current driving conditions and require regular maintenance or replacement. Upgrades to increase suspension and chassis stability, horsepower output, as well appearances are highly sought after in Kuwait. There is also large demand for American accessories such as alloy wheels, wheel caps, seat covers, seat cushions, upholstery fabrics, air fresheners, anti-theft locks, car alarms, window films, auto tools, garage equipment, and car wash equipment. Resources For more information on automotive parts and supplies, [email protected]. MEXICO
Overview
Mexico ranks as the 10th
largest vehicle producer in the world, which accounts for 17.6% of the manufacturing sector and 3% of Mexico’s GDP. Mexico’s auto parts industry is closely linked to the U.S. industry. There are currently seven manufacturers in Mexico producing 40 brands in 20 manufacturing plants. Mexico produces more than 2 million cars per year. 79% of its production is devoted to exports and the remaining 21% for the local market. In 2010 the Mexican automotive industry experienced an 11.5% growth in vehicle production. The market realities have led to new trends in car manufacturing, including smaller car sizes and increased fuel efficiency. The spare parts market is expected to increase after Mexico imposed new duties on the importation of used-vehicles in 2009. As a result, repairing and maintenance of used vehicles will require various parts. In addition, other opportunities exist for U.S. exporters of spare parts, equipment and new technologies oriented to reduce costs. Parts, equipment and first and second-tier components from the United States might experience an increase in exports due to an increase of Mexican production of new models that have shifted from U.S. assembly plants. The economic outlook for 2011 is conservative. Mr. Agustin Rios, President of the National Auto Parts Industry expressed that the auto parts industry might report a decrease of 4% by the end of 2011. Furthermore, Eduardo Solis, Chairman of the Mexican Auto Association,
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acknowledged that the industry’s situation is linked to the economy and financial environment. He expects car sales to increase by approximately 3% in 2011. The industry is currently working with the government to reduce taxes for purchasing and owning a car, an old car replacement program, among others. Despite the decline in demand and production, some automotive companies announced large investments in Mexico last year. This is due to Mexico’s advantage in low labor costs and recent technological development in the auto industry. In addition, companies are looking for lower manufacturing and export costs. Best Products/Services The greatest opportunities include: spare and replacement parts for gasoline and diesel engines, electrical parts, collision repair parts, gear boxes, drive axles, catalytic converters, and steering wheels. In the first and second-tier supply chain sector, opportunities include: OEM parts and components, precision assembly devices, machine parts, hybrid vehicle components, suspension systems, and pre-assembly components such as small and progressive stampings. Other products in demand include electronic components, specialized tooling, systems that eliminate waste and green technologies such as new combustion systems to reduce gas emission and oil consumption. Opportunities Given the economic slowdown, lack of financing, high interest rates and competition, the market has become more price-sensitive. 70% of new cars in Mexico are purchased on credit. Because of the credit shortage, new car sales have decreased and many consumers choose to maintain their vehicles for a longer period of time. As a result, the Mexican government is considering the gradual elimination of ownership tax imposed each year to consumers. In addition, OEMs located in Mexico will continue implementing strategic changes in their brand vehicles, including new technologies to make them more efficient and less expensive. The number of used vehicles being imported, especially after the NAFTA allowance for newer models, provides opportunities for exports of repair equipment and replacement parts. Effective January 2009, Mexico imposed a 10% duty on imports of used vehicles, which was decreased to 3% in March 2009. U.S. companies still face some barriers when exporting to Mexico. The most significant requirements include having a Certificate of Origin, and the 3% tariff based on a minimum estimated price, or “reference price” for the given year, make, and model of the car. Importers of used vehicles must post a guarantee representing any difference in duties and taxes if the declared customs value is less than the established reference price. U.S. exporters are advised to work closely with their importers and customs brokers to ensure that all specific requirements are met. Participation in Mexican automotive trade shows provides excellent opportunities to introduce new products and services in Mexico, after appointing a distributor. Resources
National Auto parts Industry Association: http://www.ina.com.mx Mexican Association of Automobile Distributors: http://www.amda.org.mx Mexican Association of Automotive Industries: http://www.amia.com.mx Office of Transportation and Machinery http://www.trade.gov/auto Ms. Monica Martinez, Commercial Assistant [email protected]
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NETHERLANDS Overview The Dutch automotive industry faces multiple pressures, including increasing competition, changing regulations, the need for technological innovation, environmental and safety concerns, and demanding consumers. As suppliers and buyers assess and re-establish their market position, many opportunities exist for U.S. suppliers that are able to provide competitively priced and/or innovative products. Best Products/Services In a market where interest in car customizing continues to grow, opportunities exist for US manufacturers of high quality and price competitive audio equipment (HS-852721910, HS-852721990); Alloy wheels (HS-870870500), seat covers (HS-630493000) and other interior and exterior car accessories for European cars. Bicycle racks, seat covers and alarm systems also continue to be a booming market. Continued increases are expected in the use of computers, software, data storage on diskettes, in-car navigation, electronic maps (CD-ROM), infrared blind-spot detectors, radar enhanced cruise control (HS-903289900), and head up display of speed/distance. Growing opportunities are expected in the area of safety systems, as the market is projected to increase to $9.3 billion in 2015. The introduction of new technologies not currently on the market is expected to increase growth even further. Best prospects areas include systems for parking assistance, lane departure warning, fatigue recognition, adaptive cruise control, night vision support, blind spot recognition. In addition, the aftermarket expects an increase in maintenance and repair services of an electronic nature in. An increasing number of universal garages will not be capable of performing the required work on cars older than three years. The availability and accessibility to technical information is a major issue to the aftermarket. The rate of technological advancement in passenger cars and trucks is expected to increase over the coming years, making good accessibility to technical information, universal testing and diagnostic equipment, software, tools and training a critical element to companies in the automotive industry. Opportunities There is a growing interest in electric vehicles, including passenger cars, trucks, busses, special vehicles and (motor) bikes, which offer many “green” opportunities in the Netherlands. In fact, there is a tremendous surge in the purchase of green cars. Green opportunities are comprised of more than reducing emissions and include reducing noise and improving the use of alternative energy sources. The Dutch government stimulates and tries to accelerate the introduction of electric mobility through various fiscal stimuli. Consumers enjoy a fiscal tax advantage if they purchase hybrid vehicles. Companies are encouraged to select environment friendly techniques and equipment through the Environment-Investment Deduction (MIA) with a $75.7 million budget and the Random Write-off Environment Investment (VAMIL) with a $18 million budget for 2011. Companies can apply for fiscal advantages through these programs if they use products or techniques that are on the 2011 environment list, which includes: hydrogen fueling stations;
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adaptive cruise control systems for trucks; public charging stations for electric vehicles; automatic battery replacement stations; buses with hybrid engines; noise-reduced loading cranes, garbage trucks and sweepers; automatic lubricant systems; and driving simulators. U.S. supplier with products and services that further green mobility are recommended to partner with a Dutch company. Resources Natasha Keylard, USCS Automotive Specialist [email protected] PANAMA Overview The market for new automobiles showed some recovery in 2010, after a significant decline in 2009. Approximately 35,000 new cars were sold in 2010, down from a record-setting 41,000 in 2008. As a result, demand for automotive parts and service equipment has increased. Car owners are keeping their old cars and spending more on maintenance. The automotive inventory in Panama is estimated at 600,000 units. U.S. participation in the automotive parts and service market is significant, with a market share of more than 40%. The main competitors are Japan, Korea, and Taiwan. However, the U.S. market position will improve as sales of U.S. cars increase. Demand will also remain strong for U.S.-made car parts and accessories for Japanese models. Import duties for automotive parts are 10-15% over C.I.F. value. There are no import restrictions on these products. Sub-sectors offering the best market opportunities are servicing equipment, tubes and tires, and engine parts. In July 2010 the Government of Panama changed the import duty structure for imported cars. Additionally, the value added tax was increased from 5% to 7%. None of these changes had much of an impact on the importation of new car or automotive parts. Best Products/Services Good prospects for U.S. exports include engine parts, pumps, filters, batteries, ignition parts, spark plugs, lamps, body parts, brake parts, shock absorbers, tires, exhaust components, and used or remanufactured parts especially for buses, dump trucks, and other commercial vehicles. Opportunities The expansion of the Panama Canal, a $5.25 billion project scheduled over the next 5 years, will bring excellent opportunities for U.S. exporters of auto and truck parts. In addition, the Government of Panama started in early 2011 to replace the entire bus fleet serving Panama City. Since the new bus system will replace over 1,500 poorly maintained buses currently on the road, we expect a step order increase in maintenance and parts demands. In addition, the Government has imposed new regulations on the taxi service, which may lead to an increase in demand for maintenance as well. Resources
American Chamber of Commerce in Panama: www.panamcham.com. Business Panama: www.businesspanama.com. Jeane Zuniga, USCS Trade Specialist [email protected]
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ROMANIA Overview The year 2010 marked the third consecutive year of downturn for the Romanian car market, after a peak recorded in 2007, when almost 367,000 units were sold. In 2011, Romanian auto industry representatives anticipate sales of 120,000 motor vehicles, 20% less than last year. The Romanian automotive market fell almost 67%, a dramatic and immediate casualty of the economic crisis and austerity measures put in place by the Romanian government, which have reduced Romanians’ purchasing power. The VAT hike from 19% to 24%, which took effect in July 2010, resulted in a 12% drop in new motor vehicles sales over the last six months of 2010, compared to the same period of 2009. One mitigating measure was the Romanian government program that offered incentives for scrapping old cars. Romania launched a revised “clunkers” program on February 18, 2010 in which car owners received a voucher in exchange for each scrapped car, which could be combined with up to three others when buying a new car. By December 2010, this program had induced the sale of 60,000 new cars out of a total of 106, 000 cars sold in 2010 (roughly 57% of sales). As a direct result of the prolonged validity of vouchers, the fourth quarter of 2010 was the first time in more than two and a half years in which new car sales grew on a monthly basis. At the same time, Romanian industry specialists anticipate that in 2011 automotive components manufacturers are likely to make new investments in the local market. Almost €5.4 billion is generated annually by more than 800 companies in the Romanian automotive parts industry. Among the auto parts manufacturers are ranked the following sectors by revenue:
Tires, wiring, batteries, plastic accessories, rubber €3.07 billion Mechanical parts €2.19 billion Bodies and trailers €0.14 billion
Local production: According to the statistics provided by the Automotive Manufacturers and Importers Association (APIA), in the first 11 months of 2010, Dacia’s and Ford’s production together increased Romania’s local production of motor vehicles by almost 18%. Dacia (owned by Renault) had the bigger share with 312, 000 units. Ford was second in production share with 8,600 Ford Transit Connect commercial vehicles, worth approximately €144 million. The 2010 production marked the first time Ford has had a share in Romania’s local production of motor vehicles since taking over the Craiova manufacturing facility in 2008. Another burst of new production at the Ford plant is expected in 2012, when the future small class B Max model will come into production. Dacia’s production rose 17% in the first 11 months of 2010; 90% of this was destined for export. Romanian Exports: In 2010, the Renault-owned Dacia brand continued to be one of the best performers on the European market. Its exports increased by 21.3% (288,927 units), which allowed Romania to maintain its position as one of the main car-producing countries of Eastern Europe, along with Poland, Hungary, the Czech Republic, and Slovakia. It was also the sixth consecutive year in which the company enjoyed double-digit sales growth, from a level of less than 100,000 cars in 2004 to over 300,000 units in 2010. Ford's new auto assembly plant in
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Craiova opened in September 2009, adding a second major producer/exporter to the Romanian automotive sector. Romanian Imports: The import of all motor vehicles dropped 22.5% in 2010, reaching only 76,078 units, and these occurred in the context of a 21.5% decrease in passenger car imports (66,634 units). The sales of imported diesel passenger cars experienced another substantial drop of 26%, in line with the average decline in the imported car sales. At the end of 2010, the new passenger car sale segment recorded a decrease of 18.3% to 106,328 units. There were several brands that registered growth in sales volume, namely:
BMW + 38% (by 1,574 units) Chevrolet +529% (4864 units) Mini Cooper +17% (95 units) Mazda +14% (814 units) Porsche +11% (79 units) Opel +10% (6454 units).
All other brands registered sales declines, starting with Geely and Cadillac and continuing with such popular brands as Hyundai, Kia, Peugeot and Fiat. Even brands with high market share and relatively higher volumes registered small drops, such as Volkswagen (-7%) and Renault (-6%). Local manufacturer Dacia also registered a drop in sales of about 11%, although its exports registered a solid increase (20%). Romanian Passenger Car Market Segmentation by Brand: Viewing the trends above in the context of market share is instructive. Five brands represented more than 63% of volume sold. Romanian maker Dacia was the leading brand in 2010, with a total of 34,400 units sold (35% market share, up 2.55% from 2009), followed by Volkswagen with 8, 771 units (8.3% market share), Renault with 4,401 units (7.9% market share), Skoda with 8,079 units (7.6% market share) and Ford with 7,600 units (7.2% market share). Commercial Vehicles: A total of 12,275 units were sold in 2010, a 26.4% decrease against 2009. Within this category, sales of LCVs were down with 33.8%, while trucks exceeding 18 t GVW were up (+46.4%). As many of the LCV vehicles are used as delivery trucks, this drop is indicative of the downturn for the retail sector, while the increase of the HCVs (over 18t) could indicate a recovery of the industrial sector. Conclusions: Clearly in a trough, the Romanian car market was sustained by promotional offers, discounts and the Government’s clunkers program, which supported the sales of about 60,000 of the 106,000 sold in 2010. On the other hand, the decrease in newly registered vehicles was due to the non-deductible VAT upon the purchase of a new car, maintained throughout 2010. If this provision had been eliminated, it is likely the market decline would have been less than 10% (instead of the -18% recorded). Auto Parts & Components: In 2011 industry analysts predict growth for auto parts manufacturing companies, based on the assumption that during the periods of economic recovery
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this segment will outperform the market as a whole. The two major auto manufacturers have attracted and continue to attract significant investments in the auto components industry, which makes this sector one of the most dynamic ones in an economy affected by the crisis. In 2010, cars and automotive components accounted for almost 10% of GDP and over 10% of Romania's exports. Taking into consideration Ford’s announcement that its level of production will be similar to that of Dacia, this percentage could increase to over 15% by 2013. For the auto components manufacturers, the presence of the two carmakers is extremely beneficial: Renault’s production has been steadily growing for the last six years, and Ford announced a production capacity of 300,000 cars and engines in 2013 and an actual production of at least 200,000 units. Given the degree of integration of the cars produced at Dacia Renault (80%) and Ford (60%) this segment is expected to closely follow the trend of the vehicles market. Several automotive suppliers have announced development plans, including a U.S. manufacturer of interior trim. Pirelli has already began work for the construction of the second production facility in Slatina, a €250 million investment which must be completed in two years. Continental will expand its facility in Timisoara by investing €50 million in the development of a new division. CML Innovative Technologies the local branch of the American group, one of the world's leading suppliers of automotive lighting solutions ended 2010 with a growth in sales of more than 72%. CML plans to expand its production capacity by 30-35% in 2011 and to make new investments in production equipment and building infrastructure. In a typical model, more than 95% of CML’s Romanian production goes to export, to clients such as Renault, Nissan, Peugeot-Citroen, Volkswagen, Audi, General Motors, Opel, Toyota, Honda, Mercedes, and Dacia. German company Kautex Textron automotive sector will invest €10 million to build an automotive plastics parts production facility close to Ford Romania in Craiova. The German company will produce tanks, valves, plastic pipes and pumps to be used on two models of vehicles produced at Ford Romania. U.S. automotive suppliers should consider the implications of this new concentration of automotive production in Romania, and the eastward drift of European production. These may present new sales opportunities, or affect their existing relationships with automakers with European production. Electric and hybrid vehicle production will create further opportunities for parts suppliers. Rombat Bistriţa, the car battery producer is such an example. Rombat is in talks with Ford to start, from 2012, delivering batteries for the hybrid cars the US company plans to manufacture in Craiova. Currently, the company's most important clients are Dacia and Peugeot groups, to which it delivers 20% of its total production. In the medium term, Rombat Bistriţa is hoping to sign more contracts with Renault in order to benefit from the carmaker’s global vehicle electrification program and its plans to produce 3mn batteries a year by 2015. Opportunities In Romania the rate of car ownership remains two times lower than in Western Europe and will reach higher levels only in the next three to four years. It may take that amount of time for Romania’s car market to regain its level of sales in 2008. In December 2010, the total number of registered cars was 5, 395, 195; or 245 cars per 1,000 inhabitants. Beginning in 2011, the Government of Romania will increase the car pollution tax by 45-50% on average, depending on the car's age, engine capacity and degree of pollution.
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The car tax increase will discourage imports of used cars and encourage the purchase of vehicles produced in Romania. The highest pollution tax in 2011 (30,432 euro) will be paid for 20-year-old cars with 3200 cc non-EURO engines. In the case of 10-year old EURO-2 cars, with 3, 2 cc, the tax will increase to 19,584 euro in 2011. For a new 3,000 cc EURO-5 car, the car pollution tax was set at 1,133 euro. On the plus side, the implementation of the scrapping incentive program “cash for clunkers” will continue as in the previous year, with a limit of three vouchers of 3,800 RON ($1160) each. New vehicle series by makers like Renault may boost sales. Renault will begin deliveries of special series Fluence Passion, Megane Sport Edition, and Latitude vehicles in April 2011, with an electric Fluence available at the end of the year. Freight forwarders will continue to buy trucks to cope with demand from exporters. According to APIA ‘s statistics, sales of over 18 tones trucks especially of those used to transport freight over long distances increased by almost 25% in the first six months of 2010 . The increase shows that the large transport companies consolidated their positions on the local market to target the distribution and logistics segment while small companies were weeded out and closed their businesses. Resources
Automotive Manufacturers and Importers Association (APIA) www.apia.ro Corina Gheorghisor, USCS Commercial specialist [email protected]
RUSSIA Overview Russia represents a large potential market for the U.S. automotive industry. Currently, the rate of car ownership in Russia is only 30% of the U.S. rate. The total Russian motor vehicle fleet is estimated at 38 million units, including 28 million cars. Russia is the largest and fastest growing automobile market in Europe. From 2001-2008, the Russian automotive market grew at an annual rate of 20-25% per year, and included a robust sales of imported used cars and trucks. The world financial crisis that started in 2008 put a damper on the Russian car market. Sales of new cars dropped 49% in 2009, while sales of trucks fell even more, by 70%. Used vehicle sales ceased as a result of the crisis and new, increased import duties. In 2010, Russia’s car and LCV market started to recover, demonstrating 30% market growth and reaching sales of 1.9 million vehicles, including 1.4 locally manufactured units. Industry experts expect the vehicle market to continue to grow in 2011 and achieve 2.2 million vehicles. The number of domestically assembled foreign makes is expected to be 800,000 units. Overall, Russia’s automotive market is expected to continue to recover, growing 15% per year through 2015. As part of the automotive industry, the supply chain and market for components, including aftermarket replacement parts and accessories was also greatly affected by the 2008 financial crisis. However, since Russian domestic manufacturers are not capable of producing the quality
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parts, accessories and equipment required for modern cars and trucks, the imported parts market was not hurt as badly as the vehicle market. The Russian auto industry is one of the major sectors of the domestic economy. The Russian Government is taking measures to support the industry. Nonetheless Russian vehicle assembly and component manufacturing factories remain crippled by outdated equipment, lack of modern technologies and inadequate management. The major local automotive market players include: GAZ Group, a subsidiary of Basic Element, the largest Russian aluminum manufacturer; Sollers, a former subsidiary of the leading Russian steel producer Severstal, and AutoVAZ, currently controlled by the state owned Rostechnologies Corporation and Renault (25% equity). The majority of component manufacturing assets are owned by a number of independent manufacturers. There are several projects underway to assemble foreign cars in Russia, including those of Ford, GM, Toyota, VW, Nissan, Renault, PSA, Mitsubishi and Hyundai. Ford’s plant began operation in July 2002 in a suburb of St. Petersburg. The high demand for the new Focus model made Ford one of the sales leaders in 2002-2010. GM has two ventures in Russia: the GM-AvtoVAZ joint venture has manufactured the Chevrolet-Niva SUV since September 2002, and a new assembly plant in St. Petersburg projected to make 70,000 Chevrolet and Opel crossovers annually. In 2005, Renault started manufacturing its low-cost Logan vehicle at a Moscow-based facility, the factory’s current turnover is about 70,000 vehicles. In December 2007, Toyota launched an assembly facility in St. Petersburg to manufacture 50,000 Camry vehicles annually. Nissan opened its plant in St. Petersburg in 2009 to produce the Teana and X-Trail. Volkswagen/PSA opened its plant in Kaluga in 2008. Hyundai began operation of a new plant in St. Petersburg in 2010 that will manufacture 150,000 low-cost sedan vehicles – the Hyundai Solaris – developed specifically for the Russian market. There are also several other lesser known projects: Sollers set up Ssang Yong SUV assembly and Fiat low-cost sedans in Yelabuga and another Ssang Yong assembly facility in the far-east region of Russia. There are also truck and bus assembly projects in Russia being developed by Volvo and Scania. The major obstacle to successful development of foreign assembly projects in Russia is the lack of local component suppliers. Best Products/Services Engine and engine components, steering components, brake system components, powertrain components, seats, tires, interior components, specialty equipment for cars, automotive aftermarket service and maintenance, and new car dealerships. Opportunities The best opportunities for U.S. firms are in the establishment of local manufacturing facilities or the formation of joint ventures with Russian firms and the supply of components to foreign vehicle assembly projects in Russia. Those projects’ operators are so interested in developing component supplier bases that they are ready to financially support interesting projects. International financing institutions, such as the EBRD (European Bank for Reconstruction and Development), are also inclined to provide financing for automotive projects in Russia. Although the Russian automotive industry was significantly affected by the 2008-2009 recession, industry
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analysts believe that the growth demonstrated in 2010 will continue in the mid-to-near future, since the demand is still considerable. Another good prospect is to supply upgraded equipment and technology to Russian manufacturers. Opportunities also exist in the licensing and transferring of modern technology to Russian component manufacturers. Aftermarket sales of replacement parts and accessories are dynamic, with high customer receptivity to U.S. products. Many U.S. brand names are very well known and sell strongly in Russia. Some of the “Made in the USA” products that Russian motorists seem to favor are lubricants, automotive chemicals and off-road accessories. There are no known trade barriers affecting imports of U.S. automotive products; tariffs for many imported spare parts are a relatively low 5%. The most important factor affecting growth of sales of U.S. aftermarket products in Russia is the U.S. exporters’ lack of interest in sharing brand building risks with local distributors. In the crisis-affected market, the small and mid-size suppliers of specialty equipment for cars will be competitive if they are aggressive in their market entry, brand-building and promotion actions. Finally, Russia lacks a well-developed network, even in the largest cities, of high quality aftermarket maintenance and service centers. Many of the first foreign car brands introduced to Russia are now coming to the end of their manufacturers’ warranty period, creating opportunities for U.S. companies to partner with Russian automotive businesses to meet increasing demand for quality, independent aftermarket maintenance and repair services. Resources
National Association of Automotive Component Manufacturers [email protected] St. Petersburg Assoc. of Automotive Component Manufacturers [email protected] Autobusiness Market Research Agency and Magazine www.abiz.ru/en Autostat Market Research Agency www.autostat.ru/Default_Eng.asp Alexander Kansky, USCS Commercial Specialist [email protected]
SAUDI ARABIA Overview Saudi Arabia continues to be the largest automobile market in the Gulf and fifth in the world for auto parts, accessories, and service and garage equipment. Despite the global economic crisis, the Saudi Arabian auto market has been resilient and continues to thrive with projections of substantial growth and increased consumer spending in 2010. Saudi reports indicate that the Saudi automotive market is estimated to be worth around $9 billion, including commercial automobiles and transport infrastructure. Automotive sales are known to make up about 3% of Saudi Arabia’s GDP. At present, Japan, USA, Germany, South Korea and Australia are the major suppliers of automobiles and spare parts. The market for luxury cars is also growing in Saudi Arabia, with the presence of high-income individuals; especially in the major cities of Riyadh and Jeddah. Reports indicate that more than 1,500 luxury cars worth over $1 billion are sold in the Kingdom each year. Industry sources
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reveal that luxury cars sales have been steadily increasing by about 27% every year. Despite difficult economic times, the Saudi market has been resilient and the demand for vehicles and components continues to remain strong. There is also an increasing demand for high-quality auto accessories such as alloy wheels, audio and video systems, wheels, and other internal and external accessories. Saudi Arabia is also gearing towards diversification of its automotive sector, and the trend is setting up manufacturing plants. It is worthy to mention that the Saudi Authority for Industrial Cities and Technological Relations and the UAE based Gulf Automotive Manufacturing Company signed a $100 million (SAR375 million) contract to set up an assembly plant in the Eastern province. The plant would manufacture 15,000 vehicles, mostly trucks and buses. The Saudi government is keen on encouraging the set-up of manufacturing plants; since this will open up employment opportunities for its growing population; with 50% of the 25 million populations under the age of 20. Auto industry experts have forecasted car sales in the Kingdom would grow to $19 billion in 2010 and swell to $25 billion (SAR94 billion) by 2013. Increased lending by local banks offering easy and flexible financing options will further drive demand for new vehicles. According to a recently published report, vehicle sales in Saudi Arabia are expected to jump over 30% from around 676,000 units in 2010 to 880,000 units by 2013 as the Kingdom remains virtually unscathed due to global economic downturn and the recessionary period. Easily available and flexible credit financing options from local banking institutions have contributed to the increasing number of new vehicle sales in the Kingdom. The Saudi Arabian government has placed the development of the automotive sector as one of their prime strategies in the strengthening its industrial base. At a high-profile international motor exhibition in the capital Riyadh, the Saudi Minister of Transport Jabara Al-Seraisry expressed optimism on the developing trends and the upswing in vehicle sales in Saudi Arabia, pointing that this steady growth will be sustained for years to come. The Minister indicated that the massive expansion of its roads and ports projects with a budget allocation of $3 billion will ensure the steady development of key infrastructure in the sector. U.S. manufacturers have faced stiff competition in the market, especially from Japanese and South Korean manufacturers. Japan, the United States, Australia, Germany, and South Korea are the key players in the Saudi automotive market representing more than 80% of all vehicle imports. Toyota Corp. controls close to 50% of the market share. U.S. manufacturers can be more competitive by introducing newer models from their fleet, which will in turn draw customers to their dealerships in the Kingdom. Flexible finance and installment options have always been popular with the discerning Saudi customer. It is worth mentioning that more than 700,000 cars, trucks and vans are annually imported into Saudi Arabia, including used cars and buses. The economic recovery, after the recent financial meltdown, will likely boost demand to around 750,000 units valued at $14 billion. The strength of the Saudi economy is reflected in a higher per capita income and has led to the increasing popularity of luxury cars and premium automobiles. Reports indicate that more than 1,500 luxury cars worth over $1 billion are sold in the Kingdom each year with this segment increasing steadily year after year. In addition, Saudis have always preferred larger SUV’s and trucks such
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as the GMC Yukon, Ford Expedition, Escalade, Tahoe, etc., to accommodate large families. Other popular vehicles include the Ford Crown Victoria, Caprice and Chevy Lumina models. Some of the manufacturers of premium cars that have a good market share are Lexus, Mercedes, BMW, Porsche, etc. Saudi Arabia is considered to be the largest automotive market in the Near East with imports of more than $700 million worth of parts and service equipment as of 2010 estimates. The high consumption is driven by customers, both Saudis and expatriates who opt for regular maintenance and services, rather than selling them or trading them for new cars and SUV’s. In terms of the automobile population, parts are mainly sourced from Japan, the United States, Australia, Germany and South Korea. There are over 350 dealers supplying automotive parts for U.S., Japanese, European, Australian and Asian automobiles in Saudi Arabia. U.S. companies command a leading position in the supply of transmission, steering, suspension, and braking components and parts. The favorable U.S. dollar exchange rate against the Euro and Japanese Yen is boosting the U.S. market share. Nonetheless, Japanese car manufacturers and spare parts suppliers still command the lion’s share of the Saudi market with more than 40%. There are a number of local factories that manufacture filters, radiators, batteries, exhaust systems and converters. Although some spare parts are manufactured locally under license, the bulk of automotive parts are imported. Opportunities The new foreign investment law encourages foreign companies to establish industrial and non industrial ventures in Saudi Arabia. There are good opportunities for U.S. companies in the following areas:
Tire manufacturing plants, Service equipment, Body and chassis parts, Automobile transmissions and spare parts, Auto chemicals, Car batteries, Maintenance and diagnostic equipment, Brakes and emission systems tools.
Resources
Aljomaih Automotive Co. (GM) www.aljomaihauto.com/en/index.aspx Aljazirah Vehicles Co. Ltd. (Ford) www.aljazirahford.com TriStar Group (Transmissions) www.tristarsa.com Nissan Motors Saudi Arabia www.nissan.com.sa/index.php?lang=en Just Auto www.just-auto.com Auto Middle East www.automiddleeast.com
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SENEGAL
Overview The total import market for automobiles, trucks, vans, automotive parts and accessories represented $264 million in 2009 and $276 million in 2010, representing a 4.5% increase. However, the U.S. market share has slightly decreased from 9.7% to 7.6%, but it remains a strong partner for the used vehicles segment. In the past five years, there has been an emerging interest among Senegalese for U.S.-origin automobiles. The growing number of these vehicles offers market opportunities for the supply of parts. Senegal has still a strong trade link with Europe – mostly France, Germany and Belgium – and lately with China and Korea. Along with a very active second-hand automobile market segment, the market has a growing need for auto parts for the existing fleet of cars, trucks and vans. Several shops specializing in auto accessories have flourished to satisfy an increasing demand. There is a small assembly plant for the production of buses and cars supported by Indian, Chinese and Iranian interests. The parts are imported in kits and assembled locally. Best Products/Services
Four wheel drive vehicles are in strong demand because of the poor state of roads in Senegal.
The establishment of spare parts shops specialized in servicing a growing number of U.S.-made cars is in high demand.
Franchise opportunities exist in the car servicing sector. Opportunities
The 2001 Senegalese regulation forbidding imports of over five-year-old used cars has prompted the replacement of the aging existing fleet and has led to an increase in the import of vehicles.
The recent weakening of the dollar relative to the Euro will favor imports of U.S. origin spare parts.
The Senegalese government is committed to replacing its old fleet of taxis. Resources Ministry of Equipment and Transportation: www.equipement.gouv.sn SLOVAKIA Automobile and Tier 1 Supplier Production: With a capacity to build approximately 800,000 cars per year, Slovakia is the largest producer of automobiles per capita in the world. In 2010, 563,000 cars were produced in Slovakia. Automobile and related manufacturing remains the pillar of the Slovak economy, encompassing nearly 40% of the nation’s GDP. Three OEM automobile companies produce in Slovakia. They are Volkswagen in Bratislava (127,000 units produced in 2010), PSA Peugeot Citroen in Trnava (205,000 units produced in 2010) and KIA Motors in Zilina (229,000 units produced in 2010). Automobile production in 2010 grew by 18% over 2009 but did not reach the record volume of cars that were produced in
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2008. The future is bright for the Slovak automobile industry, with a number of new models scheduled to begin production here in the near future, including the new Volkswagen Touareg Hybrid, Volkswagen’s Up! model, the Audi A5 Sportback, the Peugeot 3008, the Kia cee’d Hybrid and the new Kia Sportage. With innovations implemented in 2011, Volkswagen’s production capacity is expected to increase by more than 60% to 400,000 units per year. KIA Motors Slovakia also plans to increase its car production by two-thirds by 2012, to 450,000 units. The benefits of Slovakia’s geographic location include its proximity to automobile plants in other countries. There are approximately 12 automobile manufacturing plants within the Slovak and Czech Republics, Poland and Hungary. Today, some Slovak Tier 1 suppliers provide just-in-time shipping, not only to plants located in Slovakia, but also to manufacturing facilities in neighboring countries. Automobile Parts and Aftermarket Products: Slovakia is an EU member country and thus the market for automobile parts and equipment is largely saturated by products from countries such as Germany, Austria and France. Competitive pricing and just-in-time delivery are essential for U.S. suppliers to be successful in selling to the three OEM automobile manufacturers in Slovakia and to their Tier 1 suppliers. Skoda of the Czech Republic sells the most automobiles in Slovakia, followed by Renault, Volkswagen, Peugeot and KIA. U.S. automobile aftermarket products such as in-car entertainment, automobile security equipment and “car care” items are all good prospects for the Slovak market. Education and Training: With five new automobile models beginning production in Slovakia by the end of 2013, many experts believe the country will soon experience a shortage of trained production line workers and technical professionals. Slovakia has already experienced difficulty in finding electronic and technical engineers, designers, quality controllers, logistics experts, procurement professionals and maintenance staff who are experienced and speak at least one foreign language. Automotive companies in Slovakia realize the need to have a new, properly educated talent pool with appropriate knowledge of sophisticated technologies, new trends and processes, and foreign language skills. Thus, U.S. suppliers of training programs that focus on technical skills and foreign language ability will find opportunities in Slovakia. Resources Automotive Industry Association of the Slovakia SPAIN Overview Car customization, or “tuning” as it is known among enthusiasts, has become an increasingly popular trend in Spain. Currently, reliable statistics showing overall market size, local production, exports and imports, are not available. However, industry experts note that despite the current economic crisis, even more individuals are looking for tuning their car instead of purchasing a new one. According to estimates made at the November 2009 Barcelona Tuning Show, the annual turnover in Spain is projected to reach about 450 million Euros ($658 million) in 2010, creating employment for 8,000 individuals.
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Currently, one-third of Spain’s 24.6 million automobiles have been operating more than 10 years. With a large number of old automobiles in circulation, there is a growing need for properly-equipped auto shops that can meet the demand for repair and maintenance services. The rapid and steady growth of the automotive and aftermarket sector in Spain, combined with the solid reputation of U.S. automotive repair and maintenance equipment, should enable U.S. manufacturers to maintain and improve their position within the local market. Projections indicate that imports to Spain of automotive and aftermarket products from the United States will grow 5% over the next three years as highly technical/computerized equipment (mainly diagnostic and electronic equipment) becomes a standard feature of repair shops. Industry association representatives are optimistic about growth in the repair and maintenance equipment market. The aging of existing automobiles, stricter enforcement of government technical inspections, and structural changes aimed at market competition and consumption will encourage market demand for auto repair and maintenance equipment, making it one of the most attractive subsectors in the automotive industry. These factors are expected to stimulate the total market size in the next few years. “Tuning” enthusiasts represent a growing pool of end-users of automotive accessories. In recent years, trade events catering to this trend have appeared in Madrid (Madrid “tuning” Show and Festival) and Barcelona (Barcelona “tuning” Show), and have been known to attract as many as 100,000 visitors. “Tuning” accessories are consumed as luxury goods, not out of necessity. As such, enthusiasts have been known to spend a significant part of their salary, if not all, on automobile “tuning”. According to the Specialty Equipment Market Association, SEMA, another indirect end-user is the Spanish automobile owner. Spaniards do not take their automobiles to the auto shop as often as the majority of their European peers. Spanish auto shops service 800 to 900 automobiles a year, while EU auto shops average an estimated 2,000 automobiles a year. In the auto repair and maintenance market, the majority of end-users still consider quality and price as the most important factors governing purchasing decisions. Training and after-sales support services are two other factors that influence purchasing decisions among Spanish automobile repair professionals and owners alike. In order to enter the Spanish market, the most effective way would be to partner with a local company to act as the local representatives. In such a competitive sector, establishing a partnership with a local company can help establish market entry and obtain insight to the local environment. Opportunities The “tuning” subsector is heavily influenced by trends from the United States. As such, based on their reputation for quality and reliability, Spanish distributors and consumers of “tuning” accessories are interested in products from the United States—especially exhaust pipes, self-adhesive applications and lighting and signaling equipment (including light-emitting diodes, or LEDs). Despite the financial crisis which gripped Spain and most of the world in 2009, a delegation of over 80 Spanish firms attended the AAIW SEMA Show in Las Vegas
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(http://www.semashow.com/), down from 160 the year before. The SEMA Show, the largest aftermarket trade show in the U.S., is internationally renowned, especially in Spain, and offers the latest innovations in the automotive industry. Resources
ANFAC (National Assoc. of Automobile and Truck Mfrs): www.anfac.es SERNAUTO (Spanish Association of Equipment Manufacturers for the Automotive
Industry) www.sernauto.es/ SEMA (Specialty Equipment Market Association): www.sema.org Cámaras (Spanish Foreign Trade Statistics): http://aduanas.camaras.org Carlos Perezminguez, USCS Automobile Sector Specialist
[email protected] SWEDEN Overview Sweden, with a population of about 9 million, had 4.3 million cars in 2009. This corresponds to one car to every 2.2 people. The number of commercial vehicles was 524,000. The total import of automotive parts and accessories (HS 87.08) was worth $3.6 billion in 2009. Major supplying countries were Germany (29%), Belgium (13%), Poland (7%) and Japan (6%). US suppliers accounted for 2% of the import market. Best Products/Services Generally, Sweden offers a good market for high-quality and technically sophisticated automotive products. Good prospects exist for products within the safety and environment sectors. Swedes are very safety conscious and the manufacturers are known to follow high safety standards. Sweden is a global leader in renewable energy and alternative fuels use. The Swedish government has pledged to cut CO2 emissions by 25% by the year 2020. In 2009, there were 81,130 new environmental vehicles registered which is 38% of the total cars registered, up from 34.1%, 2008. Good prospects exist for products within emission technology, alternative energy technology and telematics. Other products that enjoy good prospects are products that relate to the Swedish climate. Examples are engine heaters for the winter and roof boxes for skis. Extra lights are also popular, especially as it is very dark for 6 months of the year in Sweden. There is also a growing market for truck aftermarket equipment. Another sector of interest is specialty vehicles. Customizing cars is a hot trend. Many Swedes consider the U.S. to be the leading country when it comes to styling and tuning their cars. The most popular products in this sector are tires and wheels, lowering kits, exhaust systems, body kits, spoilers, lighting equipment and stereo equipment.
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Resources Scandinavian Automotive Suppliers http://www.fordonskomponentgruppen.se/ The Association of Swedish Wholesalers of Automotive Parts and Accessories www.bildelsgrossisterna.se/ Hakan Vidal, USCS Trade Specialist: [email protected]
SWITZERLAND Overview The total Swiss market demand for automobiles, automotive parts, equipment and accessories was assessed at $9.6 billion in 2009. With Switzerland slowly climbing out of recession, the GDP is forecast to grow 2% in 2011. Industry sources are less bullish, predicting 1% growth in market demand for automobiles, auto parts, accessories and aftermarket products in 2011 due to a difficult market environment. Consumers are expected to exercise prudence when it comes to procuring new automobiles and accessories in order to weather the economic woes that might lie ahead. Imports from Germany have traditionally had a solid market share, capturing nearly 50% of the market, followed by France with 12% and Japan with 11%. In 2009, U.S. suppliers exported goods of $332 million, accounting for an approximately 3.3% market share. Demand for U.S. imports is expected to grow marginally in 2010 and 2011 as Swiss importers and distributors still feel the pinch of the economic crisis. The weak dollar against a strong Swiss franc nonetheless makes U.S. products competitive and affordable for Swiss consumers. U.S. suppliers should carefully evaluate their pricing and sales terms to remain competitive. Overall, Swiss automotive market demand, including sales of new and used automobiles and trucks, gasoline stations, repair and service facilities and providers of related services amounted to $64 billion in 2009. The overall automobile industry has established self as one of the mainstays of the Swiss economy. The overall car fleet in Switzerland is assessed at 3.8 million automobiles and is not expected to grow significantly over the next two years as a result of higher retention rates of automobiles and the forecast downturn of automobile sales in 2010. Although Switzerland does not manufacture automobiles, it has more than 300 enterprises involved in the production parts, components and systems for carmakers around the world, employing more than 34,000 people. Nearly 20% of the overall output is supplied to OEMs around the world. These companies yield a combined turnover of $15 billion per annum. Swiss manufacturers are heavily depended upon the German car industry; 75 of the companies are selling structures, parts and components to German OEMs. The Swiss automotive market was liberalized on January 1, 2005, giving consumers greater choice in buying new automobiles. Many Swiss car dealers and repair facilities note that liberalization is bringing more competition into the market and is beginning to put downward pressure on prices. U.S. automobiles garnered only a meager 1% market share in 2007. The worldwide automobile crisis is forecast to send Switzerland‘s car sales into a downward trajectory, which already started in 2008.
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Best Products/Services As economic growth is forecast to grow by 2% in 2010 and beyond, consumer demand for luxury items, including hi-fi equipment, aluminum wheel rims, wider tires, etc. is expected to grow marginally. Products with a high degree of receptivity on the Swiss market include specialty equipment, specialty wheels, specialty tires, in-car entertainment systems, styling products, garage equipment, diagnostics equipment, and performance enhancing products. Resources
Swiss Federal Roads Authority: http://www.astra.admin.ch/ Swiss Motor Trade and Repair Association (AGVS): http://www.agvs.ch/ Sandor Galambos, USCS Commercial Specialist [email protected]
THAILAND Overview Thailand’s vehicle production is expected to total 1.62 million units in 2010 and 1.8 million units in 2011, and exports are estimated to be 52% of total output. The export value of automotive products from Thailand for the first nine months of 2010 totaled $18.6 billion, an increase of 59% from the previous year. Meanwhile, domestic sales of vehicles in 2010 are expected to reach 780,000 units, an increase of 40%. Industry experts are optimistic that the Thailand market will grow to 840,000 units in 2011. Japanese manufacturers have a combined market share in Thailand of 90%. The five best-selling brands are Toyota (41%), Isuzu (19%), Honda (14%), Nissan (7%), and Mitsubishi (5%). Notably, Ford and GM have had impressive growth in 2010, with sales increases of 79% and 32%, respectively. All of these global manufacturers have assembly operations in Thailand that manufacture for both the domestic and export markets. The industry currently has an overall assembling capacity of 1.8 million units, and is expected to turn out two million units in 2012. The ASEAN Free Trade Area (AFTA) was implemented in January 2010 and is expected to benefit the automotive industry in Thailand over the long run. With the region’s largest and most sophisticated automotive manufacturing platform, the Thai automotive industry is expected to increase its exports in the region. The increase in intra-regional exchange of vehicle parts, resulting from the 0 to 5% tariff scheme, lowers production costs for assemblers and creates economies of scale in production for the industry. Best Products/Services
Accessories & performance parts General automotive service equipment & tools Tire (wheel) & brake service equipment Body and paint repair service equipment
Opportunities As the Southeast Asian regional automotive manufacturing hub, Thailand presents significant opportunities for U.S. companies. Building on the success of its initial plan to make Thailand one of the world’s major pickup truck manufacturers, the Royal Thai Government announced its
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intention to become a manufacturing hub for the “Eco Car,” with the objective of upholding Thailand’s competitive position as a production hub in the global market. This will increase opportunities for parts manufacturing, automotive technologies and related services in OEM manufacturing. Additionally, greater integration of vehicle markets among ASEAN countries will result in an expanded regional market for replacement parts and after-market service equipment. Resources
Thai Automotive Institute www.thaiauto.or.th Ms. Wanwemol Charukulthavatch, USCS Commercial Specialist [email protected]
TUNISIA Overview During the past two years, passenger cars produced by U.S. manufacturers have begun to penetrate the Tunisian market. Due to tax rate reductions (in January 2007, the consumption tax rate decreased from 300% to 100%) on large-capacity engine vehicles, the Tunisian market presents growing potential for U.S. automobile manufacturers. Opportunities Tunisian dealers are increasingly looking to represent U.S. automobile manufacturers as the market presents potential niches. This will lead to an increased demand for U.S. automotive parts and components. As the Tunisian automobile market diversifies beyond European brands, there is room for U.S. manufacturers and suppliers of spare parts. Both GM (operated in Tunisia under the GM, Chevrolet, and German-made Opel brands) and Ford have successfully entered the automobile car market. In 2008, Ford was ranked fifth on the Tunisian automobile market and captured 10% of market share. American brands other than Ford do not have a significant market share. Companies belonging to family members of former President Ben Ali dominated the import and export of automobiles. As Tunisia transitions to a new government and Ben Ali extended family holdings are nationalized or restructured, this may open up the way for more foreign automobiles. In early 2011, the Minister of Trade and Tourism noted the auto import sector would be liberalized, although no specific measures have yet been announced. Investment in manufacturing automobile components for export is a priority sector for the Government of Tunisia, due to its labor-intensive, and therefore job creation, characteristics. Several U.S. companies have successfully invested in this sector. TURKEY Overview Most international vehicle producers already have production in Turkey. Presently, there are 19 international vehicle producers in the Turkish market, including; Ford, Toyota, Renault, Fiat, Chrysler, Opel, Honda, Hyundai, Peugeot, MAN, Mercedes, Isuzu, Mitsubishi, through joint venture (JV) partnerships with local firms, direct investment, or license agreements. Moreover some other producers are about to start their operations in Turkey, for example Chery Automobile Co. of China committed to build a factory in Turkey last month. Cherry will be building vehicles for the European market. Also Ford and Renault’s local partners are expanding their operations recently. German Daimler is another firm, which started producing buses in
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Turkey with its Turkish partner. Turkish automotive production capacity reached 1.2 million units, and is targeting 1.5 million in 2015. 70% of the vehicles made in Turkey are exported and this stands for 20% of Turkish exports. According to forecasts of The Wall Street Journal, Turkey is going to overtake the Czech Republic and Slovakia, as the biggest car makers in Eastern Europe. Unlike the Czech Republic and Slovakia that are mainly gearing towards exports to European markets, with Germany being the main market, Turkey is increasing its exposure to markets beyond Europe, in the Middle East and North Africa. Turkey ranks as the following among European Union countries:
The largest bus producer and third largest LCV producer Third largest truck market and the 17th largest automotive producer on the world.
The Turkish automotive parts/service equipment industry has expanded as Turkish automotive production and imports have increased. Today, the Turkish automotive and parts industry have become an integrated part of the global automotive and parts industry. With its high production capacity, high standards, and a wide variety of products manufactured, automotive exports in Turkey now rank first in total exports of the country ahead of the traditional exports such as textiles and apparel. Most industry leaders, such as Delphi and Bosch have direct investments or JV partnerships with Turkish manufacturers. Currently, there are 250 foreign investors in the parts industry. German auto-parts supplier Mann & Hummel Group said they would start production in Turkey in two years. Furthermore, the American diesel motor producer Cummins started a new investment in Turkey to build a new factory to manufacture filters immediately and generators and alternators for the automotive industry in 2011. The total number of auto parts manufacturers in Turkey is 4,000, and 70% of these are SMEs. Today, the Turkish parts industry produces almost all parts and components, including engines and parts, brakes and clutches and parts, suspension systems, batteries, rubber and plastic parts, power train parts and components, security systems, auto glass, seats, etc. This sector provides parts for new vehicles as well as the existing Turkish automobile fleet that exceeds 10 million units. Of the locally produced parts industry, 90% either are used in the production of vehicles that are exported or directly go to world parts market. 70% of Turkish exports go to European Union countries. The following products are imported in the highest volumes: diesel and semi-diesel engines, body and parts for the assembling industry, gear boxes, engine parts, tires, internal combustion engines, steering wheels, brakes and servo brakes. The Turkish import regime prohibits the importation of remanufactured, rebuilt, used, reconditioned vehicles. Only the current year or the following year models can be imported. This rule also applies for parts, too. The Turkish import regime also prohibits importation of remanufactured, rebuilt, used or reconditioned parts. They can only be imported for use as scrap iron for iron and steel production.
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Best Products/Services Tires Brakes and brake linings Gearboxes Clutches and clutch rings Power steering hydraulic systems Bearings V-belts Shock absorbers Filters Bumpers Lights, and signaling equipment
Opportunities As Turkey continues to move towards European Union integration, equipment meeting stricter EU guidelines from emissions control for automobile safety and standards tests, will equate to increased sales of high tech auto parts. The privatization of the vehicle inspection centers could also provide opportunities for U.S. service equipment suppliers, because these centers need to meet some guidelines in order to be authorized inspection centers. As a result of stricter inspections, parts market is also estimated to bring new opportunities to the parts suppliers. Resources
• Automotive Distributors’ Association www.odd.org.tr • Automotive Manufacturers’ Association www.osd.org.tr • Authorized Automobile Dealers Association www.oyder-tr.org • Association of Automotive Parts & Components Manufacturers www.taysad.org.tr • Berrin Erturk, USCS Commercial Specialist [email protected]
UKRAINE Overview Like any sector of the Ukrainian economy, the market for cars and spare parts has been affected by the world’s economic recession since 2008. However, in 2010, there was a $200 million increase over 2009 vehicle sales. In 2010, Ukraine assembled 82,800 vehicles, 20 % less than imports from abroad. Automotive industry experts predict that domestic assembly of cars will continue to decrease as imports increase over the next two years. Nearly all car brands are available in Ukraine. The most common on the Ukrainian highways are those with a gasoline engine of less than 2,000 cubic centimeters, a left-side steering wheel, front wheel drive, a manual transmission, no air conditioning, and an average age of 9 years. Based on current market conditions, experts see good prospects for the sale of automotive parts and accessories to the ageing Ukrainian car fleet in general. The most common models are larger models of Ukrainian manufacture - GMDAT (ZAZ Lanos, ZAZ Sens), and of Russian and CIS origin - VAZ manufacture models: Lada 2110, VAZ 2107, VAZ 21099, 2115, 21214 Chevrolet Niva, Lada 2172 Priora, 2111.
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Ukrainian car importers plan to introduce the following vehicle models to the Ukrainian market in 2011:
A-B class vehicles: Audi A1, Citroёn C3, Citroёn DS3, Hyundai i20, Mini, Mini Clubman, Seat Ibiza SC, Skoda Fabia, Suzuki Splash, Volkswagen Polo
C-class vehicles: Alfa Romeo Giulietta, Chery M-11, Kia cee’d, Mazda 3, Opel Astra, Renault Fluence Renault Megane III, Seat Leon, Toyota Auris, Toyota CorollaD-class vehicles: Infiniti G, Toyota Prius, Volvo S60
E-class vehicles: Audi A7, BMW 5 Series, Hyundai Sonata, Infiniti М, Lexus ES 350, Skoda Superb Combi
F-class vehicles: Audi A8, Bentley Mulsanne, Jaguar XJ, Rolls-Royce Ghost Crossover-SUVs: BMW Х3, Chery X-1, Hyundai ix35, Kia Sportage, Mini Countryman,
Mitsubishi ASX, Mitsubishi Outlander XL, Nissan Qashqai, Nissan X-Trail, Peugeot 3008, Renault Duster, Subaru Impreza XV, Toyota RAV4
SUVs: BMW X5, Infiniti QX56, Kia Sorento, Lexus GX 460, Mitsubishi Pajero Sport, Porsche Cayenne, Range Rover, Toyota Highlander, Toyota Land Cruiser Prado, Volkswagen Touareg
Van-MPVs: Kia Venga, Mercedes-Benz R-class, Opel Meriva, Renault Scenic, Seat Altea XL, Volkswagen Golf Plus, Volkswagen Multivan, Volkswagen Touran
Pick-ups: Nissan Navara, Renault Logan Pick-Up, Toyota Hilux, Volkswagen Amarok Hybrid vehicles: BMW X6 ActiveHybrid, Honda CR-Z, Porsche Cayenne S Hybrid,
Toyota Prius American car parts and accessories suppliers may want to consider opportunities with the Ukrainian automotive service stations, affiliates of large car parts dealers, and automotive flea market dealerships, who buy salvage and obsolete vehicles for parts. Best Products/Services
Car Body Parts Engine and Fuel System Parts Car Batteries Car Filters Tires Automotive Glass Brakes and Parts Suspension Parts and Shock Absorbers
Opportunities Due to the requirement to meet EURO 4 emission standards:
Emission control parts Development of a nationwide Trade-In program Commissioning of pre-owned cars for resale
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Resources Nationwide Automotive Electronic Exchange Marketplaces: http://avtobazar.ua;
www.automarket.dp.ua; www.usacars.com.ua; www.autoua.com; Automotive Market Development and Trends Analysis Agencies:
www.ukrautoprom.com.ua; www.autocentre.ua; www.autoconsulting.com.ua; www.gtis.com
UNITED KINGDOM Overview The UK automotive parts and accessories market comprises two main sectors: original equipment (OE) and the aftermarket. Although figures are not available to differentiate market shares between OE and aftermarket products, in 2010, the overall market in the UK for automotive parts and accessories was valued at $23.3 billion. Imports accounted for 65% of the market, with U.S. products accounting for 2.6%.of total imports. The UK is one of the five major automotive manufacturing countries in Europe and one of the ten largest motor-vehicle manufacturers in the world. However, the economic downturn has resulted in vehicle production levels falling to a 25-year low in 2009, declining 30.9% from the previous year, coupled with decreased demand for automotive parts from OE manufacturers. However, the demand for automotive parts and accessories is expected to increase by 3.8% over 2010 figures, to total $24.2 billion in 2012. The UK has the strongest independent aftermarket in Europe, with approximately 35.8 million cars, vans and trucks registered in Britain, which provide a strong base for the sale of auto parts. Used-car sales are growing and car owners and operators are keeping their cars, on average, at least 6.8 years. A growing older vehicle base means consumers will need more repairs, more often, a development that offers good potential for products related to the repair trade. Best Products/Services U.S. exporters should explore opportunities for sales of diagnostic servicing equipment for use in garages and service stations that are authorized to undertake stringent annual checks mandated by legislation. This equipment includes laser and optical alignment systems and diagnostic equipment for engine, fuel, emissions and electronic systems that are used in specialized service and repair facilities. Opportunities There has been a shift by consumers towards smaller, more fuel-efficient vehicles, especially electric vehicles. Demand for electric vehicles is forecast to experience a breakthrough in 2011 due to a £5,000 (est. $8,000) car grant introduced by the government in January 2011. The first nine cars to become eligible for eco-friendly car grants are: Mitsubishi iMiEV; smart fortwo electric drive; Peugeot iON; Citroen CZero; Nissan Leaf; Tata Vista EV; Toyota Prius Plug-in; Vauxhall Ampera and Chevrolet Volt. More vehicles will be included next year. This grant will spur further opportunities that could benefit U.S. suppliers of parts for electric vehicles. Also, OEMs continually seek innovative new products, particularly those that focus on green transport.
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Resources The Society of Motor Manufacturers & Traders www.smmt.co.uk/ The Garage Equipment Association www.gea.co.uk/ Sara Jones, USCS Commercial Assistant [email protected]
VENEZUELA Overview Venezuela is the fourth-largest automobile assembler in Latin America behind Brazil, Mexico, and Argentina. Local assemblers are General Motors, Toyota, Ford Motors, Chrysler, Mitsubishi, Hyundai, Iveco, Encava, Mack, and several bus builders using locally made or imported chassis and engines. Venezuela has a motor vehicle fleet of approximately four million cars, trucks, and buses, plus an estimated half a million motorcycles. In September 2010, 125,202 vehicles were sold, 8.3% less than in 2009. Total units sold of imported vehicles were 15,962, and motor vehicle production decreased 6.5%. The new motor vehicle policy subjects all imports of motor vehicles and parts to licenses, effectively assigning to the Ministry of Commerce full power to allocate production and import quotas to all assembly plants, as well as importers of assembled vehicles and parts. Companies must present detailed production and import plans each year. Presumably, each assembler’s import quota will be a function of its domestic production, although many auto companies importing to Venezuela have no local production. The automotive industry and the Ministry are negotiating a program to raise domestic content from 40% to 50% by 2013. Newly established assemblers from Iran and China will not be immediately subject to a local content requirement, however. In addition, the regulation required engine assembly by 2010, which may not been possible due to low sales volumes for any one engine and the difficulty and cost of transferring the technology. The regulation also require that all passenger cars must be dual fuel (gasoline/natural gas) beginning July 1, 2008. However, the deadline has been postponed twice, and now the effective date of the regulation is undetermined. The importation of used vehicles is prohibited. CAVENEZ reports that the sales of three vehicle brands comprise 72% of the market. Chevrolet has 41.05% market share with sales of 47,224 units, Ford has 18.20% with 20,933 units sold, and Toyota 12.68% with 14,589 units sold.
Best Products/Services
Engine parts, spare parts, replacement parts Brake pads, brake and suspension systems Tires, and accessories.
Resources
Cámara de Fabricantes Venezolanos de Productos Automotores - FAVENPA Cámara Automotriz de Venezuela - CAVENEZ Adriana Sierra, USCS Commercial Assistant
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V. Trade Events
Trade events, such as trade shows, trade missions and catalog shows, offer excellent opportunities for face-to-face interaction with foreign buyers and distributors. Of the many U.S. and international events held throughout the year, some are vertical (single industry theme) and some horizontal (many industries represented). The events organized or approved by the U.S. Departments of Commerce or Agriculture can be especially useful for first-time or infrequent participants – they require less lead time to register and typically involve more handholding. The Trade-Event Scheduling Web sites listed below allow selective searches for upcoming events by industry, location, type and date. They typically provide the event organizer, event descriptions and costs, and people to contact for more information. To find upcoming events for U.S. Automotive Parts and Accessories, use industry search terms relating to automotive, motor vehicles, and the like.
Schedules for U.S. Government Organized or Sponsored Events
Domestic and International USDOC Events
http://export.gov/eac/trade_events.asp USDA (Food & agriculture) Events:
www.fas.usda.gov/scripts/agexport/EventQuery.asp
Schedules for Commercially Organized Events
BizTrade Trade Show Directory (www.biztradeshows.com) TSNN (www.tsnn.com) ExpoWorldNet (www.expoworld.net) Exhibition Center - Foreign Trade Online (www.foreign-trade.com/exhibit.htm)
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VI. Available Market Research
Automotive Parts and Accessories The reports listed below are country-specific market surveys relating to Automotive Parts and Accessories written by resident U.S. commercial staff in each country. Many of these reports analyze demand trends, the competition, business practices, distribution channels, promotional opportunities, and trade barriers. All the reports can be obtained on-line at no cost from http://www.buyusainfo.net/adsearch.cfm?loadnav=no
CENTER FOR INTERNATIONAL TRADE DEVELOPMENT 13430 Hawthorne Blvd, Hawthorne, California 90250 USA
Phone: (310) 973-3173 Fax: (310) 973-3132 E-mail: [email protected] REPORT COUNTRY DATEAutomotive Aftermarket Accessories and Performance Equipment Argentina 12/16/2010Trucking Industry Australia 06/04/2010Trucking Equipment Australia 06/07/2010Opportunities for Electric Vehicles, Parts and Systems Belgium 08/06/2010Automotive Sector Canada 01/31/2011Canada Vehicle Import Regulations Canada 07/28/2011Logistics Market China 01/11/2011Commercial Vehicles, Buses and Tractors Czech Rep 08/04/2011Automotive Update Czech Republic 09/29/2010Motorcycles Czech Republic 06/06/2011Vehicles, Automotive Parts, & Accessories Ecuador 02/18/2011Automotive Original Equipment Germany 09/30/2010Market Brief for Motorcycles and Mopeds Greece 06/30/2011The Automotive Tuning Segment Hungary 09/29/2011Automotive Parts and Service Equipment Italy 01/31/2011Motorcycle and Moped Market Italy 04/22/2011Opportunities for electric vehicles, parts and system Italy 12/10/2010Automotive Aftermarket Korea 12/27/2010Trends for Automotive Specialty Accessories Mexico 07/08/2010Green Technology Trends in the Automotive Industry Mexico 12/02/2010Regulations for the Importation of Used Vehicles and Trucks Mexico 04/30/2010Tire Company Plans for a Seven Million Dollar Investment Mexico 03/04/2010The Automotive Resource Guide New Zealand 07/20/2011Top U.S. Export Prospects to Panama Panama 04/27/2011Automotive Market Overview Romania 10/12/2011Automotive Industry Update Russia 09/28/2011Railway Projects Saudi Arabia 08/02/2010Electric and Hybrid Vehicles Sweden 03/24/2011
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REPORT COUNTRY DATEMotorcycles and Accessories Turkey 12/23/2010Diesel Parts and Services Market Turkey 04/12/2011Automotive Parts Market Turkey 07/14/2010Automotive Market Opportunity Ukraine 01/31/2010Garage Equipment, Tools, Automotive Spares and Accessories Market Ukraine 05/21/2010Green Auto Technologies Ukraine 02/03/2010Heavy-Duty Class 5-8 Truck Market Opportunity Ukraine 01/27/2010Garage Equipment, Tools, Automotive Spares and Accessories Market Ukraine 05/21/2010Automotive Market Opportunity in Ukraine Ukraine 01/13/2010Automotive Parts and Accessories United Kingdom 01/13/2011Automotive Industry Outlook Venezuela 08/24/2010
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APPENDIX
Automobiles and Automotive Parts & Accessories by Schedule B Code
Schedule B# Automobiles in HS 8703 Category
8703101000 Vehicles Designed For Traveling On Snow 8703105030 Golf Carts 8703105060 Specially Designed Vehicles, Nesoi
8703210000
Passenger Motor Vehicles With Spark Ignition Internal Combustion Piston Engine Of A Cylinder Capacity Not Exceeding 1,000 Cc
8703220000
Pass Motor Vehicles With Spark Ignition Internal Combustion Reciprocating Piston Engine, Cylinder Capacity Exceeding 1000 Cc But Not Exceeding 1500 Cc
8703230010
Motor Homes With Spark-Ignition Internal Combustion Reciprocating Piston Engine, With Cylinder Capacity Exceeding 1500 Cc But Not Exceeding 3000 Cc
8703230020
Vehicles, Nesoi, New, W/Spark-Ignition Internal Combustion Reciprocating Piston Engine Of A Cyl Capacity Gt 1500,But Le 3000 Cc, W/No More Than 4 Cylindr
8703230060
Vehicles, Nesoi, New, W/Spark-Ignition Internal Combustion Reciprocating Piston Engine Of A Cyl Capacity (1500 - 3000 Cc) (4 - 6 Cyl)
8703230075
Vehicles, Nesoi, New, W/Spark-Ignition Internal Combustion Reciprocating Piston Engine Of A Cyl Capacity Over 1500, But Less Than 3000cc & Over 6 Cylindr
8703230090
Used Vhcls, With Spark-Ignition Int Combustion Reciprocating Piston Engine Of A Cylinder Capacity Exceeding 1500 Cc But Not Exceeding 3000 Cc, Nesoi
8703240010
Ambulances, Hearses And Prison Vans With Spark Ingnition Internal Combustion Piston Engine Of A Cylinder Capacity Exceeding 3,000
8703240030
Motor Homes With Spark Ignition Internal Combustion Piston Engine Of A Cylinder Capacity Exceeding 3,000
8703240050
Passenger Motor Vehicles With Spark Ignition Internal Combustion Piston Engine, Nesoi, New, With Cyl Capacity Ov 3000 Cc, And Not More Than 4 Cylinder
8703240060
Passenger Motor Vehicles W/Spark Ignition Internal Combustion Piston Engine, Nesoi, New, With Cyl Capacity Ov 3000 Cc & More Than 4 But Le 6 Cylinders
8703240075
Passenger Motor Vehicles With Spark Ignition Internal Combustion Piston Engine, Nesoi, New, With Cyl Capacity Ov 3000 Cc & More Than 6 Cylinders
8703240090 Passenger Motor Vehicles With Spark Ignition Internal Combustion Piston Engine Of A Cylinder Capacity Over 3000 Cc, Used
8703310000 Passenger Motor Vehicles With Compression-Ignition Internal Combustion Piston Engine (Diesel) Of A Cylinder Capacity Not Exceeding 1,500 Cc
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APPENDIX
Automobiles and Automotive Parts & Accessories by Schedule B Code
Schedule B# Automobiles in HS 8703 Category
8703320010
Passenger Motor Vehicles With Compression-Ignition Internal Combustion Piston Engine (Diesel) Of A Cylinder Capacity Ov 1500 Cc But Not Ov 2500 Cc, New
8703320050
Passenger Motor Vehicles With Compression-Ignition Internal Combustion Piston Engine (Diesel) Of A Cylinder Capacity Ov 1500 Cc But Not Ov 2500cc,Used
8703330010
Ambulances, Hearses And Prison Vans With Compression-Ignition Internal Combustion Piston Engine (Diesel) Of A Cylinder Capacity Exceeding 2,500 Cc
8703330030
Motor Homes With Compression-Ignition Internal Combustion Piston Engine (Diesel) Of A Cylinder Capacity Over 2500 Cc
8703330045
Passenger Motor Vehicles With Compression-Ignition Internal Combustion Piston Engine (Diesel) Of A Cylinder Capacity Exceeding 2,500, New, Nesoi
8703330085
Passenger Motor Vehicles With Compression-Ignition Internal Combustion Piston Engine (Diesel) Of A Cylinder Capacity Exceeding 2,500 Cc, Used, Nesoi
8703900000 Passenger Motor Vehicles, Nesoi
Schedule B# Automotive Parts & Accessories in HS 8708 Category
8708100010 Stampings of bumpers and parts of headings 8701 to 8705 8708100050 Bumpers and parts, nesoi, of headings 8701 to 8705 8708210000 Safety seat belts for motor vehicles of headings 8701 to 8705 8708290010 Stampings of bodies (including cabs) and parts of 8701 to 8705 8708295025 Truck caps for motor vehicles of headings 8701 to 8705 8708295170 Parts and accessories, nesoi, of bodies (including cabs) of heading 8701 to 8705 8708300010 Mounted brake linings of motor vehicles of headings 8701 to 8705 8708300050 Brakes and servo-brakes and parts, of motor vehicles of headings 8701 to 8705 8708401110 Gear boxes for passenger motor vehicles 8708401150 Gear boxes for road tractors, public-transport type vehicles, and vehicles for the
transport of goods 8708403500 Gear boxes for vehicles, nesoi, of headings 8701 to 8705 8708502110 Drive axles with differential for tractors (except road tractors for semi-trailers),
whether or not provided with other transm compnts for 8701 to 8705 8708502150 Non-driving axles and parts for tractors (except road tractors for semi-trailers) of
heading 8701 to 8705 8708504110 Drive axles with differential for vehicles, nesoi, whether or not provided with
other transmission components of headings 8701 to 8705 8708504150 Non-driving axles and parts for vehicles, nesoi of headings 8701 to 8705
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APPENDIX
Automobiles and Automotive Parts & Accessories by Schedule B Code
Schedule B# Automotive Parts & Accessories in HS 8708 Category 8708507200 Parts and accessories, for drive axles 8708700010 Road wheels and parts and accessories for tractors (except road tractors for semi-
trailers) of headings 8701 to 8705 8708700050 Road wheels and parts and accessories for vehicles, nesoi, of headings 8701 to
8705 8708800010 Suspension shock absorbers for tractors suitable for agricultural use 8708800050 Suspension shock absorbers for vehicles, nesoi 8708807000 Parts and accessories, for suspension systems 8708915000 Radiators for vehicles, other than tractors for agricultural use 8708918000 Parts and accessories, for motor vehicles radiators 8708921000 Mufflers and exhaust pipes for tractors suitable for agricultural use 8708925000 Mufflers and exhaust pipes for vehicles, nesoi 8708928000 Parts and accessories, for mufflers 8708931000 Clutches and parts for tractors for agricultural use 8708935000 Clutches and parts for vehicles, nesoi 8708941000 Steering wheels, steering columns and steering boxes for tractors suitable for
agricultural use 8708945000 Steering wheels, steering columns and steering boxes for vehicles, nesoi 8708948000 Parts and accessories, for motor vehicles steering wheels 8708950000 Airbags for motor vehicles of headings 8701 to 8705 and parts thereof 8708990011 Parts and accessories, nesoi, for tractors (except road tractors for semi-trailers) of
headings 8701 to 8705 8708995800 Double flanged wheel hub units incorporating ball bearings for motor vehicles of
subheading 8701.20 and headings 8701 to 8705 8708998115 Double flanged wheel hub units not incorporating ball bearings for motor
vehicles of subheading 8701.20 and headings 8701 to 8705 8708998130 Slide-in campers for motor vehicles - subheading 8701.20 & headings 8701-8705 8708998175 Parts and accessories, for motor vehicles of headings 8701 to 8705, nesoi
