Chile - Automotive PartsChile - Automotive Parts
Overview
Demand for auto parts in the Chilean market is related to growth in the overall automobile sector. Chile, with 17.92 million people and 5.5 million vehicles. This fact directly benefits the sales of auto parts for the maintenance of used vehicles. Since there is no significant local production of auto parts, almost all parts and accessories are imported from trading partners around the world who have access to the Chilean market. Local manufacturing is approximately 15% of total market size. Local production is mostly limited to tires, filters, screws, CV joints, and gearboxes.
The auto parts sector is divided into two main categories; the market for light vehicles, which includes passenger vehicles; and the market for heavy vehicles, which includes buses, trucks, trailers, and heavy equipment.
The Chilean market for auto parts has over 60 brands from various countries. Nevertheless, U.S. parts are still leading the market and accounted for approximately 25% of the auto parts imported by Chile in 2018, a portion grossing roughly US$ 334 million. Top automotive selling brands are Chevrolet, Suzuki, Kia, Hyundai, Nissan, and Toyota. In the diverse market for auto parts, no single brand name has a significant market share due to strong competition and the wide variety of automobile brands available.
Keeping used cars instead of trading in for new ones maintains the demand for replacement parts. Consumers may also value quality and be willing to pay more for a replacement part that will last. An estimated 37% of cars in use are over 10 years old.
We will continue to see changes in these numbers as electric vehicles are expected to see immense growth in the next 10 years and will affect the auto part market. In 2018, electric cars represented 0.2% of new cars sales market, but are expected to reach between 25% and 40% of the market by 2040. Automotive brands are betting heavily on electric cars, Toyota predicts that by 2025 50% of its sales will be electric.
Unit: USD millions
)Total Market Size = (Total Local Production + Total Imports) – (Total Exports)
Data Sources:
(2)Total Local Production: Industry experts, National Institute of Statistics (INE), Chile’s Manufacturers’ Association (SOFOFA) and elaboration
Total Exports: Chile Customs Data
Total Imports: Chile Customs Data
Imports from U.S.: Chile Customs Data
Notes: (1a) These figures do not include parts for mining machinery and vehicles, a major industry in Chile. (2a) The total local production figure is 90% tire production for exports.
Leading Sub-Sectors
American brands are the top sellers of heavy vehicles. Best prospects for parts include engine kits, differential gears, clutches, rings, accessories, lights, pneumatic suspension systems, batteries, filters, and oil. Other successful parts are parts that wear, such as joints, rods, and fifth wheels.
In the market for light vehicles the best prospects include engine components, clutches, mufflers, tires, catalytic converters, lights, gearboxes, air filters, brake components, and windshields.
Opportunities
Interesting opportunities are present in the aftermarket parts and accessories market. Non-branded or generic imports account for 80% of the aftermarket and 20% are OEM.
Web Resources
Chamber of Auto Parts- CAREP
Chilean Automotive Association - ANAC
Metal Mechanics & Metallurgic Association - ASIMET
National Chamber of Automotive Commerce - CAVEM
For additional information please contact: claudia.melkonian@trade.gov
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Demand for auto parts in the Chilean market is related to growth in the overall automobile sector. Chile, with 17.92 million people and 5.5 million vehicles. This fact directly benefits the sales of auto parts for the maintenance of used vehicles. Since there is no significant local production of auto parts, almost all parts and accessories are imported from trading partners around the world who have access to the Chilean market. Local manufacturing is approximately 15% of total market size. Local production is mostly limited to tires, filters, screws, CV joints, and gearboxes.
The auto parts sector is divided into two main categories; the market for light vehicles, which includes passenger vehicles; and the market for heavy vehicles, which includes buses, trucks, trailers, and heavy equipment.
The Chilean market for auto parts has over 60 brands from various countries. Nevertheless, U.S. parts are still leading the market and accounted for approximately 25% of the auto parts imported by Chile in 2018, a portion grossing roughly US$ 334 million. Top automotive selling brands are Chevrolet, Suzuki, Kia, Hyundai, Nissan, and Toyota. In the diverse market for auto parts, no single brand name has a significant market share due to strong competition and the wide variety of automobile brands available.
Keeping used cars instead of trading in for new ones maintains the demand for replacement parts. Consumers may also value quality and be willing to pay more for a replacement part that will last. An estimated 37% of cars in use are over 10 years old.
We will continue to see changes in these numbers as electric vehicles are expected to see immense growth in the next 10 years and will affect the auto part market. In 2018, electric cars represented 0.2% of new cars sales market, but are expected to reach between 25% and 40% of the market by 2040. Automotive brands are betting heavily on electric cars, Toyota predicts that by 2025 50% of its sales will be electric.
Unit: USD millions
| 2016 | 2017 | 2018 | 2019 estimated | |
| Total Market Size (1) | 1,302 | 1,434 | 1,549 | 1,628 |
| Total Local Production (2) | 500 | 525 | 550 | 570 |
| Total Exports | 354 | 347 | 341 | 338 |
| Total Imports | 1,156 | 1,256 | 1,340 | 1,396 |
| Imports from the U.S. | 273 | 309 | 334 | 350 |
| Exchange Rate: 1 USD | 676 | 649 | 621 | N/A |
Data Sources:
(2)Total Local Production: Industry experts, National Institute of Statistics (INE), Chile’s Manufacturers’ Association (SOFOFA) and elaboration
Total Exports: Chile Customs Data
Total Imports: Chile Customs Data
Imports from U.S.: Chile Customs Data
Notes: (1a) These figures do not include parts for mining machinery and vehicles, a major industry in Chile. (2a) The total local production figure is 90% tire production for exports.
Leading Sub-Sectors
American brands are the top sellers of heavy vehicles. Best prospects for parts include engine kits, differential gears, clutches, rings, accessories, lights, pneumatic suspension systems, batteries, filters, and oil. Other successful parts are parts that wear, such as joints, rods, and fifth wheels.
In the market for light vehicles the best prospects include engine components, clutches, mufflers, tires, catalytic converters, lights, gearboxes, air filters, brake components, and windshields.
Opportunities
Interesting opportunities are present in the aftermarket parts and accessories market. Non-branded or generic imports account for 80% of the aftermarket and 20% are OEM.
Web Resources
Chamber of Auto Parts- CAREP
Chilean Automotive Association - ANAC
Metal Mechanics & Metallurgic Association - ASIMET
National Chamber of Automotive Commerce - CAVEM
For additional information please contact: claudia.melkonian@trade.gov
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.