Scope & Limitations

Global Automotive Aftermarket—Driven by increasing competition, growth in emerging markets and expansion and digitization of sales channels

The Supplier Field of Vision: What are Global CEOs Looking at?—Changing geopolitical environment, possible economic slowdown; a stronger aftermarket presence of non-automotive participants

Snapshot Colombia—Aftermarket revenue reached $3 Bn in 2017, should touch ~$4 Bn by 2020; imports cater to 50% of AM* components demand

Indian Auto Parts in Colombia—Significant potential for Indian auto parts in the 2 wheelers and passenger vehicle segments in Colombia

Second most populated country in South America; legal driving age is 16-years, albeit with restrictions

Colombia Gross Domestic Product—One of the first economies in South America to recover from the 2008-09 crisis

Colombia Automotive Industry Overview—A bigger 2W market with ~6 million vehicles on road; Hero Motor’s investment in a new production plant to act as a regional hub

Passenger Vehicle Segment Overview—North American brands Chevrolet and RENAULT occupy almost half of Colombia’s passenger cars segment

Commercial Segment Overview—With sales of 5000 units, Chinese brands CHERY, DFSK, FOTON and JAC accounted for 4.0% of the market in 2016

2 Wheeler Segment Overview—Japanese, Chinese and Indian brands dominate the 2 wheeler market; 93% consumption catered by domestic production

3 Wheeler Segment Overview—Chinese and Indian brands dominate the 3 wheeler market; Three Tuk-Tuk assemblers and three large importers dominate the market

Tractor Segment Overview—Negligible tractor production, market serviced by imports; SONALIKA is the only strong brand imported from India

Trends in the Colombian Automotive Market—Hero Motors constructing a production plant in Colombia, Bajaj is a strong player

Aftermarket Auto Component Market Size—Auto component aftermarket in Colombia accounted for US $3,000 million in 2016

Aftermarket Auto Component Maintenance & Parts Replacement Practices—High demand for cheap Chinese imports across vehicle segments

Vehicle Servicing Infrastructure in Colombia—Preferred service channel uses a mix of OEM genuine parts, aftermarket branded, and high quality Chinese parts

Colombia Auto parts Association: ASOPARTES—Supports social, commercial and technical objectives; sets standards, represents industry interests, integrates the market

Auto Component Import Trends—Auto components imports grew by 5.2% CAGR over 2009-2014; most demand catered by imports from North America, Europe and China

Importer-Distributors’ Sourcing from China—Share of Chinese imports in some component categories (quality perceived to be low) not as high

Chinese Auto Components in Colombia—Reverse engineering capability of Chinese manufacturers – a significant advantage over competing manufacturers from other countries

Perception of Indian Auto Components—Colombian Automotive stakeholders perceive product range and product development capability as key concerns

Stakeholders willing to pay incremental premium for Indian parts over Chinese for their better quality

Critical Success Factors for Aftermarket Components in Colombia—Improvements in brand image, such as packaging design and brand recognition are key to success in aftermarket

Maximize opportunities from existing products and markets; systematically explore new products, markets, including inorganic Opportunities

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