Nicaragua’s auto part manufacturing industry can expand export offer

MANAGUA, Nicaragua - Sept. 5, 2014 - PRLog -- Nicaragua’s manufacturing industry has the capacity of producing a wide variety of automotive components, including floor mats and liners, seat covers, deflectors and products that require labor intensive processes, apart from the country’s highly exported auto wire harnesses.

Last year, the auto parts manufacturing industry of Nicaragua generated US$574 million, representing 22 percent of the free zone regime’s total exports, according to the National Free Zone Commission. However, these export figures were generated solely by the manufacturing of auto wire harnesses, meaning there is still great opportunity in the country to manufacture other types of automotive components.

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 produce automotive harnesses components. Together, these companies employ around 15 thousand people directly and 45 thousand indirectly. The most renowned companies include Japanese Yazaki and German Dräxlmaier.

Nicaragua’s growth in the auto parts industry 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.