While some of its regions are experiencing slowdowns, currency devaluations and other market corrections, the overall outlook for automotive aftermarket demand is positive for 2014 in Latin America – particularly in Mexico, the closest neighbor and trading partner with the U.S.
Recent discussions with the export executive members of the Overseas Automotive Council (OAC) of the Automotive Aftermarket Suppliers Association (AASA) show strong demand and growth in key markets within Latin America.
OAC leaders report an interesting mix of business conditions in Mexico currently. Some manufacturers report great success in specific product lines and regions. In an exclusive report for OAC members, John Price, managing director of Americas Market Intelligence – Miami, noted that Mexico’s economy has strengthened and the country has become competitive again. Its economy also will benefit from increased oil and gas production starting in 2015.
Parts of Central America are flat but the majority of the region appears stable, according to OAC executives. Colombia’s business conditions have improved since the U.S. free trade agreement was reached in 2012, and its GDP should grow at close to 5 percent per year over the next three years. Despite rising inflation, business in Brazil remains healthy as the country prepares to host the 2014 Summer Olympics and World Cup Soccer. Chile’s economy is healthy and sales are up as compared to the same time last year.
In his report to OAC members, Price also noted the top opportunities in the region for aftermarket product exporters:
· Mexican aftermarket demand will grow.
· Depressed Central American markets will revive.
· The slowdown of new car sales in South America will age the vehicle park, stimulating aftermarket parts and materials demand.
An important upcoming opportunity to reach Latin American markets is the annual PAACE Automechanika Mexico, slated for Wednesday, July 16, through Friday, July 18, in Mexico City. Held annually, the event draws thousands of attendees in the global automotive industry. In addition to the thousands of products, services and resources available on the exhibit hall floor, PAACE Automechanika Mexico City also provides education, training and networking events.
OAC supports its members at PAACE Automechanika Mexico with exhibitor services and valuable networking with international buyers. For more information on OAC’s services at PAACE or other council programs and benefits, contact Curtis Draper, OAC executive director, at [email protected] or 919-406-8856.
Editor’ note: Curtis Draper is the vice president of industry analysis, programs and member services at AASA and executive director of AASA’s international aftermarket councils: the China Aftermarket Forum (CAF) and the OAC.The CAF is a consortium of full-service suppliers that meet on a quarterly basis to discuss opportunities within the Chinese aftermarket and to identify ways to address challenges in the growing segment. For more details about CAF programs and initiatives, click here.
The OAC promotes the sale in foreign markets of automotive and heavy-duty products manufactured in North America. Those products include components, accessories, chemicals, hand and power tools, service maintenance and repair equipment, and paint and body supplies for both cars and trucks. OAC has more than 350 members in more than 40 countries. More information is available through its Web site, www.oac-intl.org.
AASA exclusively serves manufacturers of aftermarket components, tools and equipment, and related products. It is a recognized industry change agent – promoting a collaborative industry environment, providing a forum to address issues and serving as a valued resource for members.
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