- Aug. 13, 2014
-- The compound annual growth rate of automotive harnesses exports in Nicaragua from 2002 to 2013 reached 63 percent. According to the National Free Zones Commission, this industry’s exports reached its highest historical figure in 2013 with US$574 million, which represents 22 percent of the free zone regime’s total exports.
Currently, there are four auto parts manufacturing companies operating under the free zone regime, of which two are producing automotive harnesses and the other two automotive harnesses components. Together, these companies employ around 15 thousand people directly and 45 thousand indirectly. Some of the most renowned companies in Nicaragua include Yazaki from Japan and Dräxlmaier from Germany.
In the automotive industry it is particularly important to build low-cost value chains. Nicaragua’s growth in this sector has been stimulated by the country’s competitiveness in terms of low operational costs, access to key markets around the globe and generous fiscal incentives under the free zone regime.
Even though the auto parts manufacturing industry growth in Nicaragua has been driven by automotive harnesses, the country still offers an array of opportunities to produce other types of automotive components like floor mats and liners, seat covers, deflectors and other products that require labor intensive processes.