Dominican Republic - Automobile Parts and ServicesD.R. - Automobile Parts and Services
Overview
In the Dominican Republic, the demand for automotive spare parts is linked to the aging car population (59.7 percent of the automobiles were manufactured in 2000 or before), growth in total vehicle population (6.2 percent annual growth in 2018), and the deterioration of Dominican streets and roads.
2017 | 2018 |
2019
(estimated)
| |
Total Market Size | 210 | 262 | 287 |
Total Local Production | 6 | 6 | 6 |
Total Exports | 4 | 4 | 4 |
Total Imports | 208 | 260 | 285 |
Imports from the U.S. | 135 | 169 | 185 |
Sources: U.S. Census Bureau, Economic Indicators Division
Statistics from the Department of Economic Studies of the Internal Revenue Directorate of the Dominican Republic indicate that as of December 2018 there are 4.35 million vehicles circulating in the Dominican Republic, reflecting a 6.2 percent increase from 2017.
Out of this total vehicle population:
55.1 percent are motorcycles (2.4 Million)
20.9 percent are automobiles (909,420)
10.3 percent are SUV's (449,918)
9.9 percent are trucks and pick-up trucks (431,109)
2.3 percent are buses (101,149)
1.5 percent are others [ambulances, heavy equipment, etc.] (60,777)
There is a significant car population imported from Asia, 65.2 percent of vehicles in the Dominican roads are made in Japan and 11 percent are from South Korea. Nevertheless, 65 percent of all automotive spare parts (including Asian products) are imported from the U.S. because of proximity and logistics considerations. Although there is local production of batteries and radiators, it only accounts for a small percent of the total market, while the rest of the market is supplied from imports.
Imported Vehicles | |
Country of Origin | Leading Brands |
Japan | Toyota, Honda, Nissan, Mazda |
South Korea | Hyundai, Kia |
Europe | Volkswagen, Mercedes Benz |
U.S. | Chevrolet, Ford |
Leading Sub-Sectors
Automotive Tires and Tubes
Batteries
Electrical components
Motorcycle spare parts
Body parts and accessories
Brakes and parts
Drive-train parts (suspension shock absorbers, steering wheels)
Engines and electrical parts for motor engines
Used parts
Diagnostic equipment
Opportunities
Because of the prevalence of Asian made vehicles in the Dominican vehicle population, importation of spare parts for those vehicles represents opportunities for American exporters. Likewise, the large number of motorcycles in the Dominican cities provides a constant demand for motorcycle spare parts.
Web Resources
Maria Elena Portorreal, Regional Senior Commercial Specialist; maria.portorreal@trade.gov
Report on the Dominican Vehicle Population (Parque Vehicular): http://www.dgii.gov.do/informacionTributaria/estadisticas/parqueVehicular/Documents/ParqueVehicular2019.pdf