This is a best prospect industry sector for this country. Includes a market overview and trade data.

Overview
Guatemala continues to be an important market for automotive parts and accessories. In 2018, the sector showed a 4 percent increase from previous years.  According to sources, the increase was in response to fair economic conditions in the market.  On average, Guatemalans keep their automobiles for five to seven years before purchasing a newer model. To supply the demand for those who wish to purchase a new vehicle at a smaller cost, an important number of informal importers purchase damaged cars at auctions in the United States. These importers repair the automobiles and refurbish them locally for later re-sale.

As of March 2019, the total numbers of vehicles in Guatemala was 3,596,456, including motorcycles. This number represents over seventy four percent increase in the last ten years. Approximately 1.1 million vehicles circulate through Guatemala City every day.

These vehicles require continuous maintenance and replacement services.  Imported parts and equipment are sold to local mechanic shops, service stations and gas stations. The significant volume of used vehicles in circulation and the poor conditions of the roads have stimulated the need for repair equipment and parts. 

Thirty seven percent of all automotive parts, accessories and service equipment are imported from the U.S. with the remaining percentage of imports coming from Korea, Mexico, Japan, China, Brazil, India and Europe. A significant volume of Asian manufacturers is present in the market with significantly low-priced products. It is estimated that almost seventy five percent of the cars circulating in Guatemala are made by Asian brands.

There is a great opportunity for U.S. exporters of automotive parts and accessories to maintain the current vehicle volume.
 

 

2016

2017

2018

2019 estimated

Total Exports

16,024

17,626

18,331

19,064

Total Imports

519,131

555,470

577,689

600,796

Imports from the US

121,748

130,271

135,482

140,901

Exchange Rates

7.50

7.50

7.50

7.50

(total market size = (total local production + imports) - exports)
Units: $ thousands
Source: SIECA Guatemala, Central America Data Express

Leading Sub-Sectors
The most promising sub-sectors for U.S. products within the industry include aftermarket products such as: hydraulic brake fluids, liquids for hydraulic transmission systems, lead-acid, piston engines, used pneumatic tires or rubber, parts and accessories for suspension systems, oil and fuel filters, bumpers, spoilers, tail lights, wheels, sound systems, alarms, radial tires, batteries, suspension kits, mufflers, air filters, chips, exhaust systems, brakes, windshield wipers, spark plugs, wheel covers, and steering wheels.

Other promising products are service equipment such as: lifts, tire repair, electronic diagnosis, tire balancing, compressors, and equipment and tools for service stations.

Opportunities
To supply the large demand for aftermarket products, service tools and equipment, there are more than one hundred spare parts and service agents in Guatemala.  The majority of agents and distributors, whether they are large companies or small entrepreneurs, are always open to look at new alternatives to offer their customers. It is very important to note that this market is price driven and that Asian brands are well positioned in the market.  Innovative, unusual products are a good opportunity for U.S. manufacturers as long as the prices remain competitive.

Market Size:  3,596,456 vehicles (March 2019)

U.S. Auto Parts Exports: USD 140.9 million in 2018

Impact of Tariff Reduction:  Under DR-CAFTA, U.S. manufactured automotive parts enter Guatemala at zero percent import duty.  Prior to the Free Trade Agreement implementation, import tarriffs ranged from one to twenty percent.   U.S. companies can take advantage on these cost savings by applying to benefits under DR CAFTA when exporting to Guatemala.

Origin rules in CAFTA-DR allow remanufactured parts to qualify for duty free treatment, potentially expanding the market for these products in the CAFTA-DR region.

Web Resources
U.S. Commercial Service in Guatemala:  www.buyusa.gov/guatemala
Official website for Government Tenders:  www.guatecompras.gt
Guatemalan Chamber of Commerce: www.ccg.com.gt
Tax information official website:  www.sat.gob.gt
Customs Vehicle Park Statistics: https://portal.sat.gob.gt/portal/parque-vehicular/
Statistical information:  www.sieca.int
 

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.