AUTOMOTIVE INDUSTRY - Invierta en Colombia

“Colombia meets all the right conditions to be an significant
player in vehicle production worldwide, and the country could
have a solid and e cient automotive industry that generates
high-quality jobs.”
Juan Manuel Santos,
PRESIDENT OF THE REPUBLIC OF COLOMBIA
AUTOMOTIVE INDUSTRY
PRODUCTION AND MARKET
COMPOSITION
Colombia is the second largest producer of motorcycles in the region after
Brazil with more than 660 thousands units. Acolfa, 2015
Colombia is the fourth greatest producer of vehicles in Latin America, with
more than 130,000 units assembled per year. Acolfa, 2015.
Colombia has a wide network of manufacturers and distributors of parts for
cars and motorcycles with capacity to serve foreign markets.
L ib
e rt a
d
y O r den
Colombia can boast the presence of recognized assemblers such as:
Renault, General Motors, Hero, Toyota-Hino, Susuki.
INCREASE IN DEMAND
AND SALES IN THE SECTOR
Between 2013 and 2015, vehicle sales exceed 300,000
units on average. ANDI, 2016.
Cars, SUVs, pickup trucks and cargo vehicles, are the
best-selling segments in the country. ANDI, 2016.
66% of vehicles sold in Colombia are imported and 34%
are assembled. ANDI, 2016
Motorcycle production almost doubled between 2010 and
2014, recording an average annual growth of 16%. Produc
tion of motorcycles represented on average around 94% ofapparent consumption, while imports were 6%.
Sofasa-Renault and General Motors Colmotores are the
assembly plants with the greatest volume of production
and vehicle sales in the local market. In commercial cargo
vehicles the leader in production and sales is Hino.
SALES OF VEHICLES IN COLOMBIA
PRODUCTION OF MOTORCYCLES IN COLOMBIA
Thousands of units
324,6
316,0
253,9
2010 2011
293,8
328,5
350,9
Between 2015 and 2019, vehicle sales are expected to grow
at an average rate of 5.8%, thus sales will exceed 430,000
units. Business Monitor, 2015
Thousands of units
362,8
381.0
398,7
436,0
516,7
553,6
625,1
2010 2011
2012
2013
390,3
2012
2013
2014 2015e 2016e 2017e 2018e 2019e
Source: ANDI and Business Monitor International
e = estimated
662,6
672,6
678,6
685,4
687,5
2014 2015e 2016e 2017e 2018e
Source: Acolfa and Business Monitor International
e = estimated
COLOMBIA AS A VEHICLE
EXPORT PLATFORM
Vehicle exports registered a compound annual growth rate
of 15% between 2010 and 2015. DANE, 2016.
Colombian vehicle exports are mainly cargo vehicles and
automobiles to Latin American countries such as Mexico,
Ecuador, Chile and Peru. DANE, 2016
Motorcycle exports registered a compound annual growth
rate of 22% between 2010 and 2015. Ecuador and Venezuela are the main export destinations. DANE, 2016.
PROJECTS THAT IMPACT
THE AUTOMOTIVE INDUSTRY
As a result of the free trade agreements Colombia has achieved
of commercial passenger and cargo vehicles, utility vehicles and
motorcycles, to countries such as Mexico, Peru and Chile.
In 2014, the number of traditional transport vehicles in service
decreased by 13%, while those belonging to the integrated
transport systems increased by 46%. It is expected that by 2020
in Colombia, mainly in the Pacific region, will permit
organizing the productive chain to achieve logistic and
scaling advantages for exporting vehicles and auto parts.
agreements, the development of the manufacturing industry
and the road infrastructure projects that the Colombian
Government is implementing, will encourage demand for
freight vehicles, since 73% of cargo is mobilized by land.
country will mean an increase in demand for commercial
passenger vehicles.
182,885 to 360,879 vehicles. Cargo transportation is comprised
of 73% trucks. Colfecar, 2015
AUTO PARTS MARKET UNDER DEVELOPMENT
AND WIDE RANGE OF PROVIDERS OF
ORIGINAL AND SPARE PARTS
COLOMBIAN EXPORTS OF AUTO PARTS
2010-2014, USD MILLIONS
Source: Productive Transformation Program.
Production in the auto part sector doubled over ten years, going from USD 414
million in 2002 to USD 945 million in 2012, recording an average annual growth
rate of 10%.
491,4
454,0
449,7
367,3
close to the automobile assembly plants, in Cundinamarca, Valle del Cauca y
Antioquia.
positions, and are mainly car batteries, tires and security windows. Ecuador,
Venezuela, United States, Mexico and Peru are the main destinations for
exports of autoparts.
OTHER FACTORS FOR
INVESTING IN THE SECTOR
Skilled labor: the annual average of graduates in areas related to the sector is
around 30,000. Labor Observatory, 2015
2010
2012
2013
2014
NUMBER OF GRADUATES IN AREAS RELATED TO THE
AUTOMOTIVE INDUSTRY 2010-2014
corresponds to graduates in Mechanical
Engineering, Industrial Engineering, Electronic
Engineering and related fields.
33.580
33.345
30.398
in the region with USD 2.41. IMD- World Competitiveness Yearbook 2015
Colombia offers the following incentives and programs that benefit the
automotive industry: (1) Automotive Industry Promotion Program (PROFIA);
(2) Assembly System for the automotive industry within the Andean Community agreement; (3) Deposits enabled for processing and / or assembly (DHTE);
(4) Free Zones for assembling process; (5) Production and assembly of vehicles
or equipment environmentally friendly; (6) Automotive agreement between
Colombia and Brazil.
2011
327,7
18.235
2010
26.337
2011
2012
2013
2014
COLOMBIA, A COUNTRY WITH
MULTIPLE DEVELOPMENT HUBS
CUNDINAMARCA
Bogota is the main center for the industry, with 5 of the 8 assembly plants in the country.
Bogota accounts for 37% of all new vehicles registered in the country.
the auto parts industry of the country.
Source: Invest in Bogota
VALLE DEL CAUCA
Opportunities for assembling buses, trucks, light vehicles and motorcycles.
aims to increase innovation, productivity and competitiveness of the auto parts industry and vehicles of Colombia.
Opportunity to manufacture auto parts: the region of Valle del Cauca is a leading manufacturer
of electric batteries, tires and other rubber products.
Source: Inves
CULTURAL COFFEE LANDSCAPE:
Opportunities for assembling buses, trucks and light vehicles.
Regime for competitive incentives:
automotive companies to take advantage of the growing domestic market and the possibilities for
production of machinery and transport equipment.
Opportunities in manufacturing parts
CARIBBEAN:
Opportunities for assembling buses, trucks and light vehicles.
Four
Port of entrance for CKD material coming from Europe and North America.
Source: ProBarranquilla
gion.
n projects.
LARGE FOREIGN COMPANIES HAVE CHOSEN
COLOMBIA AS A PLACE TO INVEST
General Motors-Colmotores.
invested USD 200 million in its industrial
Free Trade Zone to construct a stamping/
cutting and folding plant.
Hero.
in the manufacture of motorcycles,
built a production plant in order to
become a distribution platform to
Central and South America because of
the suitable logistical conditions.
Baterías MAC y Jhonson Controls.
production in the region of Valle de
Cauca has established a Joint Venture
with the U.S. company Johnson
Controls, the main producer of
batteries worldwide.