We are cautious, however, that a full recovery to pre-crisis levels may not be possible until 2013 as the conservative nature of the domestic banking sector will hold back a rapid recovery in lending. Moreover, unemployment is still relatively high in Colombia and until we witness a significant improvement in employment figures, consumption in Colombia is likely to remain relatively mild. By the end of our forecast period to 2015, nevertheless, we expect the total vehicle market to reach sales of over 322,600 units, which will make Colombia one of Latin America's prime targets for foreign investment and new entrants into the market.
According to industry figures, General Motors Company (GM) currently leads the market, thanks to the popularity of its core Chevrolet brand. However, Colombia could see an influx of European cars thanks to a free trade agreement (FTA) with the EU. Although the final details are yet to be approved, it has been reported that the FTA will result in a complete removal of import tariffs on industrial goods, primarily cars, from Europe by 2018. This trade arrangement will be particularly beneficial to Renault and Fiat, both looking to bag strong gains in the domestic market. We also expect an increased presence of South Korean brands in the near future.
Meanwhile, the Colombian government is attempting to boost its green credentials by suspending import tariffs on 'green vehicles' - including electric, hybrid and CNG passenger cars, trucks and buses - for the next five years. Although still at a very nascent stage, Colombia unveiled its first domestic EV - the Salamandra Lexion - in April 2009, built by local-based Yakey International.
Despite these developments and more investment coming from existing carmakers, mainly Renault and GM, Colombian autos manufacturing lacks the scale and volume compared with its major regional peers. As such, it ranks sixth in BMI's Industry Risk-Reward Rating, only performing better than Peru.
For more information or to purchase this report, go to:
Report Table of Contents:
- Colombia Auto Industry SWOT
- Colombia Political SWOT Analysis
- Colombia Economic SWOT Analysis
- Colombia Business Environment SWOT Analysis
- Region Best Poised For Increased NGV Sales
Business Environment Ratings
- Table: Latin America Auto Business Environment Ratings
- Regional Leaders
- The Underperformers
- Reining Developed States
Industry Forecast Scenario
- Table: Colombia Autos Sector - Sales, Historical Data And Forecasts (CBUs Unless Otherwise Stated)
- Table: Colombia Autos Sector - Production, Historical Data And Forecasts (CBUs Unless Otherwise Stated)
Macroeconomic Forecast Scenario
- Table: Colombia - Economic Activity
- Market Overview
- Company News
- Commercial Vehicles
- Colmotores (GM)
Country Snapshot: Colombia Demographic Data
- Section 1: Population
- Table: Demographic Indicators, 2005-2030
- Table: Rural/Urban Breakdown, 2005-2030
- Section 2: Education And Healthcare
- Table: Education, 2002-2005
- Table: Vital Statistics, 2005-2030
- Table: Employment Indicators, 2001-2006
- Table: Consumer Expenditure, 2000-2012 (US$)
- Table: Average Annual Wages, 2000-2012
BMI Forecast Modelling
- How We Generate Our Industry Forecasts
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at http://www.fastmr.com/
About Fast Market Research
Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.
For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.