Automotive industry in Colombia

Introduction

Colombia is the ideal location for the manufacturing and assembly of cars, trucks, buses and auto parts.

Colombian is the fourth biggest automotive manufacturer in the region and it´s industry represents a 2.5% of the total manufacturing industry work force.

Colombia’s automotive industry includes the assembly (of light vehicles, light weight trucks, buses and motorcycles) and manufacturing of parts used in assembly for the OEM Markets and replacement markets, which includes suppliers of inputs from other industries such as metalworks, petrochemicals (plastics and rubber) and textiles.

Colombia currently has a fleet of around 3.8 million of vehicles; about 59,5 % of those units are supplied by imports.

Table of Contents

  • Market Size

    • Production and composition of the market in Colombia
    • Increased demand, rapid growth of vehicle sales
    • What is expected for this year?
  • Advantages of the industry

    • Suppliers
      • Colombia has developed auto parts market and an extensive range of suppliers of OEM and aftermarket
    • Incentives to investors
      • Assembly or Transformation Authorized Warehouses (DHTE)
      • Free Trade Zones
    • Strategic location and export platform
    • Relocation of Productive Units
    • Automotive cluster initiative in the country
    • Development of Mass Transportation Systems
    • Infrastructure, mining and oil projects represent an opportunity in the truck segment due to the growing supply for heavy trucking transportation
    • Availability of skilled labor at competitive costs
    • The Automotive Sector has been identified in a study made by the Government and the private sector with the support of McKinsey, as a world-class industry that needs to be promoted and up-graded
      • Priority areas defined by the government: The Automotive industry has been selected by the State to be developed and maximize its potential under this priority areas by making it part of the program called “World-Class Initiative”, this is a complete and extensive plan that will transform several industries and elevate them to be competitive at the highest levels before the year 2032.
    • Sustainability initiatives in the industry
  • Recently Investment Decisions

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