The vehicle segment is recognized as an industry that leverages economic and social development, due to its multiple effects on a wide range of fields of industrial activity, which include contributions to innovation and transfer of technology.
Colombia is a market with potential for growth, being the third largest country in the region in terms of population. Its motorization index is 98 vehicles per 1000 inhabitants, which is lower than that of countries such as Argentina (301), Chile (228) or Ecuador (131).
One of the segments that could help boost the automotive market in Colombia is the transport of land cargo, thanks to two specific points:
- The possible arrival of road freight transportation, nine-axle vehicles with a gross load capacity of 75 tons.
- The second point is related to the to the age of the existing freight vehicle fleet in Colombia, which oscillates in 20 years, and is one of the oldest in the region. In addition, the scrapping program and the pressure to reduce pollution levels could lead to a phase of mass change, which would boost the market of this segment.
The implementation of the Integrated Transportation Systems in the country’s main cities will meet the increase in demand for commercial passenger vehicles.
In terms of trends, the automotive sector is leaning towards the production of hybrid and electric vehicles. This is as a result of the decision by some countries to start regulating or restricting the mobility of gasoline-driven vehicles.
Colombia expects that by the year 2030, 400,000 electric vehicles will have entered the country. This is driven by the recent regulation by the Ministries of Commerce and Finance which allowed the importation of almost 14,000 environmentally-friendly cars. The government initiated a tariff amnesty on imports of electric and hybrid cars with 0% and 5% duty, respectively, from this year until 2027.
- Colombia’s automotive sector contributes around 5% of total sales in the country's industrial sector.
- 4th largest producer of vehicles in Latin America, with over 130,000 units assembled per year.
- 66% of the vehicles sold in Colombia are imported and 34% are assembled in the country.
- Annual sales of new vehicles represents 1.6% of the GDP.
- It is the 6th largest employment generator in the manufacturing industry, constituting 3.5% of total employment in this sector (24,800 jobs).
- In terms of numbers of units produced, there are 4 companies that account for 96% of vehicle production.
- 2nd largest motorcycle producer in the region, after Brazil.
- The principle manufacturers of auto parts are located near the automobile assembly centers, in the departments of Cundinamarca, Valle del Cauca and Antioquia.
Source: DANE, ANDI y Camacol